What is Amazon FBA and FBM?

By Diana
December 12, 2022

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FBA and FBM are two different fulfillment options offered by Amazon to its sellers. FBA, or Fulfillment by Amazon, is a service that allows sellers to store their products in Amazon’s fulfillment centers and have the company handle the shipping and customer service for those products. FBM, or Fulfillment by Merchant, on the other hand, is a fulfillment option where the seller handles the storage, shipping, and customer service for their own products.

One of the main benefits of using FBA is that it allows sellers to offer Prime shipping to their customers. Prime is Amazon’s subscription-based shipping program that offers free, fast shipping on millions of items. By using FBA, sellers can make their products eligible for Prime shipping, which can help them attract more customers and increase their sales.

In addition to Prime shipping, FBA also offers other benefits to sellers. Because Amazon handles the storage, packing, and shipping of FBA products, sellers don’t have to worry about managing their own inventory or dealing with customer inquiries. This can save sellers time and resources, allowing them to focus on other aspects of their business.

On the other hand, FBM is a fulfillment option that gives sellers more control over the storage and shipping of their products. With FBM, the seller is responsible for storing their inventory, packing and shipping orders, and providing customer service for their products. This means that the seller has to manage their own inventory and logistics, which can be a challenge for those who are not experienced in e-commerce fulfillment.

One of the main advantages of FBM is that it allows sellers to save on fulfillment costs. Because they are not using Amazon’s fulfillment centers and services, they don’t have to pay the fees associated with FBA. However, this savings comes at the cost of not being able to offer Prime shipping, which can be a disadvantage for some sellers.

In conclusion, FBA and FBM are two different fulfillment options that offer different benefits and drawbacks for sellers on Amazon. FBA can be convenient and allows for Prime shipping, but it comes with additional fees. FBM offers more control and flexibility, but doesn’t allow for Prime shipping and requires the seller to handle their own fulfillment.

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