Amazon is the biggest ecommerce site in the world. Selling on Amazon by listing your products listed can get you in front of a large audience. Amazon gives sellers the opportunity to fulfill orders themselves or let Amazon handle by itself.
In fact, Amazon sellers can use either of the following fulfillment methods:
Fulfilled by Merchant (FBM)
Fulfilled by Amazon (FBA)
Multi-Channel Fulfillment (MCF)
Seller Fulfilled Prime (SFP)
While each acronym is different, all options enable Amazon sellers to get their orders to customers’ doors.
In this post, we’ll go into the details of Amazon Fulfilled by Merchant works, and their benefits.
AMAZON FULFILLED BY MERCHANT (FBM)
Amazon Fulfilled by Merchant is a fulfillment method in which an Amazon seller is responsible for fulfilling their products purchased by customers on Amazon.
Instead of using Amazon to handle fulfillment, you need to handle the inventory storage, order fulfillment, returns, and customer service.
HOW AMAZON FBM WORK?
The merchant fulfills orders when their products are sold on Amazon through self-fulfillment.
Amazon FBM is an perfect option for new merchants selling on Amazon, as FBA requires a few approvals, and takes time to set up.
Small sellers can often fulfill orders themselves, while larger sellers are more likely to utilize a logistics network to fulfill orders.
Here are a few steps to sell on Amazon by FBM:
LIST YOUR PRODUCTS ON AMAZON
Once you create an account with Amazon Seller Central, you can begin listing your products. Make sure to include the information on your listings to improve your conversion using the attractive image, videos, copy, relevant keywords and more.
Depending on the number of fulfillment centers you have, you need to send your products to strategic locations so you can save on shipping costs.
If you’re a new seller, a storage center or even your home can be a short-term solution for warehousing.
SHIP ORDERS ON TIME
Once you receive an order notification, you must ship the product on the delivery timeframe. Amazon provides an estimated delivery time to buyers so customers know when to expect an item they have ordered from you.
You can modify your shipping and handling time and transit time to set customer expectations better. You can buy shipping labels through Amazon or on your own.
Finally, be sure to update with valid instructions for returns for all Amazon Fulfilled by Merchant orders. When you approve a buyer’s request to return a product, Amazon sends the buyer a return label with your return address.
While selling on Amazon FBM, you have three main fees:
Since you’re selling on Amazon you have a referral fee for each sale you make. The total referral fee will based on the type of product you sell, and can range from 6% to 45%
To view the fees for each product type, you can check out the referral fee table on Amazon’s website.
MONTHLY SUBSCRIPTION FEE
Amazon offers a subscription fee for the professional FBM seller that costs $39.99 per month. By choosing this plan, you have additional fees when a product is sold.
PER-ITEM SELLING FEE
The per-item selling fee is $0.99 for each item sold. This fee is for the sellers who choose individual selling plan.
Amazon’s Fulfilled by Merchant is a good option for Amazon sellers, who need to have a complete control over your inventory.
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