Deciding which Amazon fulfilment option is best for your business is crucial, as each method of selling can help your business in a variety of ways (Check out FBA and SFP explained here). This blogpost will look into the key benefits and challenges of Fulfilled by Merchant with Amazon.
What is Fulfilled by Merchant?
Fulfilled by merchant (FBM) is the process of selling by listing your products on Amazon, but manage your storage, shipping, and customer support in-house or through a third party (like GNOC). You will retain control over all of the fulfilment process, including shipping and packaging your products. Having complete control of your inventory enables you to also control your customer experience too. This can include the branding and customisation of your orders.
Benefits of FBM
By having full control over your inventory, FBM allows you to have better control and visibility of your costs, meaning you can manage your materials, labour, and freight. FBM sellers often have smaller sales volumes, so control is a huge priority, as your reputation and customer service can make or break your business.
FBM is perfect for sellers with unique packaging requirements, bigger items, or those seeking to maintain control over the customer experience and the shipping of goods.
So FBM may be might for you if:
- Your business sells a low volume of products as FBM is more cost effective.
- You have large or heavy items to ship (large storage fees for FBA).
- You can easily provide customer service and returns in-house.
- You have plenty of space to store products.
- You only keep a small amount of inventory.
- You have smooth-running logistics in place.
- You deal with minimal fulfilment requirements.
- You like to provide more personalised customer experiences (allows you to send personalised packaging, branded cards or have more tailored experiences).
Challenges of FBM
The biggest drawback of FBM is the lack of exposure to Amazon Prime. Listings without the Prime badge can often be overlooked or can be de-prioritised by the Amazon search algorithm, meaning your products may be less likely to be seen. This can affect your sales negatively.
The advantages of managing your own inventory can also be seen as a disadvantage. Managing the entire storage and fulfilment process can be expensive and time consuming. This is why a lot of FBM users may decide to use a 3PL, who can take on the responsibility of all of your fulfilment and pick, pack and ship your stock for you (meaning you have more time to focus on the growth of your business).
What we do
When you partner up with GNOC, we will store your products at our UK-based warehouse. When your orders start to roll in, we check, prep, and then ship your products as quickly and efficiently as possible, making sure your customers are happy. Not only does using a 3PL save you time, but also the huge costs of having your own warehouse.
If you decide that FBM is the right option for you, you may want to partner up with a 3PL as it can mitigate risks and distractions that come with managing your own inventory. You can put your trust in us to help fulfil, pack, and ship your orders to your customers.
Why not enquire today and find out exactly how GNOC can help your business grow.
