Amazon is the largest ecommerce retailer in the world. In fact, it is not far off the largest retailer that has ever existed anywhere (second only to Walmart). There are many reasons that Amazon has been able to grow so large. For one thing, the company successfully exploited the ecommerce boom just as enough people were going online to provide the enormous market which it holds to this day. Another deeper reason is that Amazon has always known how to involve that massive marketplace in the operation of the site – both buyers and sellers.
Accordingly, there is a great deal of freedom and a great many buying and selling options users of Amazon can choose from. Moreover, Amazon attracts sellers by making the selling of goods on the site as flexible as possible. Fulfill by Merchant (FBM) is just one of the services Amazon provides for those wishing to sell through the site, essentially allowing the seller to handle shipping duties.
Many sellers on Amazon do prefer having Amazon handle all their shipping, and the company does provide a competitive rate. But for many entrepreneurs using Amazon, fulfilling orders themselves has proven an excellent way to cut costs and maximize business growth.
What is FBM?
Amazon’s Fulfill by Merchant option pretty much does what it says on the tin. By taking this route, a retailer using Amazon handles inventory storage, order fulfillment, returns and customer service. In other words, you do the lot when it comes to getting your products to the customers. And the reason why this option is so popular is simply that this level of control over the selling process allows entrepreneurs to tailor things to their own company’s unique operation.
Benefits of FBM
To find out whether is FBM is for you then means it is important to see if the potential benefits apply to your particular business circumstances. Shipping and Handling of Texas, an ecommerce fulfilment service operating out of Houston, TX, advise that if you decide to go for FBM then you still have a lot of freedom to do things your way. Therefore, an intimate knowledge of your business logistics is essential.
Here are some of the top benefits of Amazon’s FBM service:
You Can Partner with Anybody
Selling through Amazon but having another company more familiar with the logistics of your business and the area it operates in is a wise move for many e-commerce enterprises. FBM gives you the freedom to do this, so you can make sure your order fulfilment process is completely bespoke.
Fast Shipping is Still Guaranteed
Amazon doesn’t just let anybody fulfil orders; the company actually holds its FBM merchants to a high standard, all to ensure that Amazon’s reputation for fast shipping is preserved.
FBM is Perfect for Multi-Channel Strategies
If you are selling on multiple channels, FBM can allow you to consolidate your order fulfilment arrangement with one company, which is particularly useful if your products are purchased through multiple channels. Keeping things simple when they threaten to get complicated is always a good.
FBM Means Fewer Fees
You will still have to pay things like referral fees, per-item selling fees and, of course, your monthly subscription to Amazon, but FBM is nevertheless a fantastic way to keep the costs down. There are more fees if Amazon handles your shipping, and it is perfectly possible to beat these with savvy order fulfilment handled by a third party.
So, take stock of your business and see if FBM is right for you. In the majority of cases, you could be looking at lower costs and more freedom.