Comparison of Amazon vs. Merchant Fulfillment

November 1, 2022
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Donny Raw
Posted in Business
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Many amazon merchant fulfilled are changing their FBA listings to be fulfilled by Merchant in order to maintain COVID-19 ecommerce sales velocity. The men’s grooming brand BAKblade, for instance, has experienced the same problem with Amazon. BAKblade made the decision to keep both FBA and FBM open when they received their Amazon Prime badge back after being without it for more than a month due to the COVID-19 outbreak, knowing that Amazon could modify its policies at any time. A retailer of replacement parts strives for maximum channel diversification and consistently performs both FBM and FBA. Let’s explore the positives and drawbacks of FBM because many Amazon vendors have switched to it.

Amazon Fulfilled by Merchant: Pros and Cons

For new sellers on Amazon and even for those who make the majority of their sales through their online store, Amazon Fulfilled by Merchant is frequently the fulfillment option of choice.

The benefits of Amazon FBM

Amazon sellers can still benefit from the prime real estate on the highly visited site of Amazon by using Fulfilled by Merchant.

Access Amazon customers for less money.

Fees for Amazon FBA are much higher than those for FBM. Sellers who use Amazon Fulfilled by Merchant often pay a monthly subscription fee, a modest cost per order, and an order-specific referral fee.

Avoid the tight FBA guidelines set by Amazon.

Amazon is notorious for altering its FBA criteria without providing merchants with adequate notice to prepare (and they get much higher during Q4). For businesses that fulfill orders on Amazon, these rules may be a burden. There are less regulations and sanctions with FBM if you don’t meet their exacting standards for each Amazon Prime order.

Maintain greater control over your company

Your brand suffers with Amazon FBA. The packaging that customers receive has Amazon’s logo on it, not yours. Customers may link your products to Amazon and contact Amazon customer service if they have problems. You may more easily make sure you’re giving your customers the experience you desire when you utilize FBM for order fulfillment.

The drawbacks of FBM

It may be difficult to give up Amazon’s refined process because they are the best at completing Amazon purchases. Additionally, Amazon FBM sales are not necessarily a direct result of FBA sales.

No badge for Amazon Prime

Lack of Prime-eligible products is the biggest disadvantage of choosing Amazon FBM vs FBA. The two-day delivery of items is the main benefit of Amazon Prime. Consumers don’t want to wait more than a month for non-essentials during the coronavirus epidemic, but there are still lengthy delays for those items. You can get a similar result to Prime if you fulfill these orders yourself or collaborate with a 3PL like ShipBob that is fully operating at all fulfillment centers and isn’t stopping fulfillment of non-essential products.

Take extra time to pursue your goals (if self-fulfilling)

Packing boxes can take a lot of time if you’re handling your Amazon FBM orders. In self-fulfillment, there are unstated costs that you must pay, such as the loss of the chance to work on projects with higher value.