nounDefinition
FBM(Fulfillment by Merchant)isSeller handles Warehousing, packing, shipping, customer service and ReturnsprocessLogisticsmethod, alsonameforFulfillment by Merchant.
FBMAdvantages
FBMmainAdvantages:
1. Cost Control: No Storage Fee, sellerscanchoosingmorecheapLogisticsplan
2. Inventory Flexibility: seller managesinventory, nolongWarehousingrisk
3. customizedpackaging: cancustomizedpackaging, enhanceBrand
4. Product Testing: suitableNew Product Testing, noneedlargeStock
5. specialproduct: suitableFBAnoprocessspecialproduct(ifOversize, dangerous)
1. Cost Control: No Storage Fee, sellerscanchoosingmorecheapLogisticsplan
2. Inventory Flexibility: seller managesinventory, nolongWarehousingrisk
3. customizedpackaging: cancustomizedpackaging, enhanceBrand
4. Product Testing: suitableNew Product Testing, noneedlargeStock
5. specialproduct: suitableFBAnoprocessspecialproduct(ifOversize, dangerous)
FBM vs FBAComparison
| Features | FBA | FBM |
|---|---|---|
| Warehousing | Amazon warehouse | seller themselves |
| shipping | Amazon handles | seller handles |
| Prime | has | no |
| Buy Boxseveral | high | low |
| delivery speed | fast(2-day delivery) | slow(7-15days) |
| Storage Costs | has | no |
Exampleanalysis
Example: New Product TestingchoosingFBM
a certainsellersplantestonenew product, notmarketDemand:
FBMplan:
- Stock: Purchase from supplier50item, cost$15/item
- Storage: Stored in own warehouse, No Storage Fee
- shipping: usededicated lineLogistics, $8/item
- Selling price: $39.99
- Gross profit: $39.99 - $15 - $8 = $16.99/item
FBAplan:
- Stock: procurement100item(recommended minimum), cost$15/item
- Storage Fee: $0.50/item/months, approx.$50/months
- Fulfillment Fee: $3.50/item
- Head Haulshipping cost: $2/item
- Gross profit: $39.99 - $15 - $3.50 - $2 - $0.50 = $18.99/item
Conclusion:
althoughFBAPer-unitGross profitmorehigh, butFBMcansmallbulktest, reduceslow-sellingrisk.testsuccessafterthenswitchtoFBA.
a certainsellersplantestonenew product, notmarketDemand:
FBMplan:
- Stock: Purchase from supplier50item, cost$15/item
- Storage: Stored in own warehouse, No Storage Fee
- shipping: usededicated lineLogistics, $8/item
- Selling price: $39.99
- Gross profit: $39.99 - $15 - $8 = $16.99/item
FBAplan:
- Stock: procurement100item(recommended minimum), cost$15/item
- Storage Fee: $0.50/item/months, approx.$50/months
- Fulfillment Fee: $3.50/item
- Head Haulshipping cost: $2/item
- Gross profit: $39.99 - $15 - $3.50 - $2 - $0.50 = $18.99/item
Conclusion:
althoughFBAPer-unitGross profitmorehigh, butFBMcansmallbulktest, reduceslow-sellingrisk.testsuccessafterthenswitchtoFBA.
Policy Sources
Amazon officialhelpdocument: Fulfillment by Merchant
sidepageDetailed DescriptionFBMoperationProcessandRequirements.
sidepageDetailed DescriptionFBMoperationProcessandRequirements.
Operation Tips
RecommendationsNew Product TestingphaseuseFBM, reduceinventoryrisk; whenSales VolumestableafterswitchtoFBAbyobtainmoregoodbuyerandmorehighConversion Rate.meanwhileNoteFBMshippingDelivery timeRequirements, avoiddelayshipimpactAccount Performance.