One of the best opportunities for any e-commerce business is listing its goods on Amazon. The platform has a huge customer base, allowing any new business to gain traction very quickly. However, there are strict measures to be followed before using the platform to sell your goods.
One of them is Amazon FBM fulfillment. This refers to fulfillment by the merchant, where your e-commerce business will handle everything, like storage, packaging, shipping, and more. This differs from FBA, where Amazon handles these aspects.
So, how do you go about Amazon FBM fulfillment as a new e-commerce? This guide will help you.
What the Seller Does
As mentioned, the seller does most of the fulfilment as follows:
- Storage and inventory – Your e-commerce is allowed to handle storage and inventory. But if you want to make this easy, a third-party logistics company like Packageman can do this for you. This is because you may not have a warehouse, especially when you’re first getting started. These 3PLs may also have warehouses and inventory systems that align with Amazon’s requirements.
- Packaging and patching – You will also need to package goods for yourself. Some people also patch or assemble orders, especially in cases where bundles or combos are sold. Again, a 3PL company can help.
- Shipping and returns processing – Once an order is processed on Amazon, you will be required to ship it if you choose Amazon FBM fulfillment. It can be an uphill task because you have to be efficient as required by the platform. So, choose a logistics partner with efficiency in shipping and return processing.
What Amazon Does
Amazon offers a selling platform. Therefore, they will only list the products, receive orders, and handle payment in the Amazon FBM fulfillment arrangement. Therefore, your new e-commerce should make all necessary arrangements to take over the services we have mentioned above.
However, Amazon wants you to meet the necessary requirements because they have a reputation to protect. This means you should work with a reliable 3PL to avoid being penalized by Amazon or getting blacklisted.
Benefits of Amazon FBM fulfillment
Everything has its pros and cons. For now, we will mention why you may need Amazon FBM fulfillment for your new e-commerce.
- It offers more control – If you want to take control of order processing, such as packaging and shipping, then choose FBM. You can also work with a logistics partner of your choice and plan the easiest way to handle these processes.
- It can save money – Amazon FBM fulfillment eliminates the FBA fees and also allows you to choose the most cost-efficient way to handle logistics. However, you should be careful to avoid challenges related to extreme cost-cutting measures.
- Suitable for certain sellers – If you are lucky, your e-commerce business could be one of the businesses that work best with Amazon FBM fulfillment. In this case, you will have more efficient services, an opportunity to work with 3PL companies, and most importantly, grow and scale your business easily.
Conclusion
Amazon FBM fulfillment is one of the best options for any e-commerce business. It is good to assess it carefully and see if it fits your business well. It comes with its benefits, such as control and flexibility. However, you have to adhere to Amazon’s strict guidelines at all times to avoid challenges. Good luck!
Image by Tung Lam from Pixabay
