As a Dutch eCommerce seller selling internationally within Europe, it is important to know about order fulfillment and shipping options. One option is to use Fulfillment by Merchant (FBM) when selling on Amazon. In this article, we discuss the pros and cons of FBM, compare it to Fulfillment by Amazon (FBA ), and provide valuable tips on how to optimize your FBM strategy.
Was ist Fulfilment by Merchant (FBM)?
FBM is a fulfillment method in which the seller is responsible for storing, packing and shipping the products sold through Amazon. Unlike Fulfillment by Amazon (FBA ), where Amazon handles the entire process of storing, packing and shipping, with FBM the seller retains full control over the logistics process.
Advantages of FBM
- More control : The seller has more control over the logistics process, allowing them to respond to specific customer requests.
- Lower costs : FBM can be cheaper than FBA, especially for large or heavy products, because the seller does not use Amazon’s warehouses and fulfillment services.
- Flexibility : The seller can choose different shipping options, such as same-day delivery or international shipping, and tailor them to the customer’s needs.
- Less dependence on Amazon : FBM providers are less dependent on Amazon and can therefore react more quickly to changes in platform policies.
Disadvantages of FBM
- More work : The seller is responsible for the logistics process itself, which can lead to additional work and complexity.
- Lower visibility : Products offered through FBM generally have lower visibility on Amazon because FBA products are preferred in search results and the Buy Box.
- Less access to Prime customers : FBM products are not automatically eligible for Amazon Prime, which can reduce the seller’s access to lucrative Prime customers.
Amazon FBM vs. FBA: Which option is best for your business?
The decision between FBM and FBA depends on several factors, such as:
- Product characteristics : Large, heavy or complex products are often better suited to FBM as FBA costs can be higher.
- Shipping volume : Sellers with lower shipping volumes can benefit from FBM because they are less dependent on Amazon’s warehouses and inventory management.
- International Shipping : Sellers who ship internationally a lot can benefit from FBM because they have more control over shipping options and costs.
- Customer service : Sellers who want to improve their customer service (e.g. through personalized packaging or gift options) are better off using FBM.
- Available Resources Suppliers who have the resources and infrastructure to manage the fulfillment process themselves can benefit from the lower costs and flexibility that FBM offers.
It is important to carefully consider both options and choose the fulfillment method that best fits your business and growth strategy.
Tips for optimizing your FBM strategy
- Optimize your shipping process : Ensure an efficient shipping process to ensure fast delivery times and low shipping costs.
- Practice good inventory management : Keep a close eye on your inventory levels and plan accordingly to avoid running out of stock.
- Invest in customer service : Provide excellent customer service to keep your customers happy and generate positive reviews that can help increase the visibility of your FBM products on Amazon.
- Be competitive with pricing : Since FBA products are often prioritized in search results, it is important to be competitive with your pricing to make your FBM products attractive to customers.
- Consider joining the Amazon Prime program : FBM sellers can qualify for the Amazon Prime program by enrolling in the Seller Fulfilled Prime (SFP) program, which can lead to greater reach and better selling opportunities.
Summary
Fulfillment by Merchant (FBM) offers Dutch e-commerce sellers selling internationally within Europe an alternative to Fulfillment by Amazon (FBA). While FBM offers more control and flexibility, it also presents challenges such as lower visibility and more work for the seller. By carefully considering which option best suits your business and optimizing your FBM strategy, you can sell successfully on Amazon.
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