{"id":12721,"date":"2021-10-22T00:22:16","date_gmt":"2021-10-22T00:22:16","guid":{"rendered":"https:\/\/zhenhub.com\/?p=12721"},"modified":"2022-10-07T18:24:10","modified_gmt":"2022-10-07T10:24:10","slug":"amazon-fba-versus-fbm","status":"publish","type":"post","link":"https:\/\/zhenhub.com\/blog\/amazon-fba-versus-fbm\/","title":{"rendered":"Amazon FBA versus FBM: Which One is Right for Your Business?"},"content":{"rendered":"\n

It’s common knowledge that consumer behaviors changed significantly following the 2020 health crisis. More people over the last year turned to eCommerce for their shopping needs. This shift is the new normal, and this trend is a blessing and a challenge. Putting up an online store doesn’t have the overhead costs like brick-and-mortar shops. And this can easily translate to more profit at the end of the month. Nevertheless, the influx of orders can be a strain on their existing logistics and order fulfillment process<\/a><\/a>.\u00a0<\/p>\n\n\n\n

Retailers need to have a solid logistics process and platform to succeed in online retail. After all, customers expect fast and often free deliveries from most eCommerce sellers. Fifty-four percent (54%) of consumers<\/a><\/a> claim that same-day shipping contributes to their purchase decisions. Likewise, 69% of shoppers<\/a><\/a> won’t return to a brand if they fail to deliver their parcels on or before the delivery dates.<\/p>\n\n\n\n

For online retailers that sell through Amazon, there are two logistics options that they can choose from\u2014Fulfilled by Amazon or Fulfilled by Merchant. Both FBA and FBM have their pros and cons. In this article, learn more about FBA versus FBM to discover the right fit for your enterprise. <\/p>\n\n\n\n

Amazon FBA versus FBM<\/strong><\/h2>\n\n\n\n

Fulfillment by Amazon and Fulfillment by Merchant is the marketplace’s logistics options for sellers that transact through the platform. Sellers can choose to fulfill orders through FBA, FBM, or a combination of both<\/a><\/a>. At the time of writing, 66% of Amazon sellers use FBA exclusively, 6% use FBM exclusively, and 29% take advantage of the two options.\u00a0<\/p>\n\n\n\n

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FBA versus FBM: The Main Difference<\/h3>\n\n\n\n

Fulfillment by Amazon<\/a><\/a> is the marketplace\u2019s logistics and fulfillment service that allows sellers to enjoy Amazon\u2019s warehousing and shipping capabilities. Retailers that choose this service send their inventory to Amazon warehouses. The platform then stores and ships items directly to consumers based on set Amazon seller fees<\/a><\/a>.\u00a0<\/p>\n\n\n\n

On the other hand, Fulfilment by Merchant awards complete control of the logistics and fulfillment process to the sellers. Retailers store inventory in their warehousing units. When an order comes in through Amazon, they ship the packages to the sellers. <\/p>\n\n\n\n

Despite the overwhelming number of Amazon merchants that use FBA, choosing between FBA versus FBM is not to be made lightly. There are advantages and disadvantages to consider.  <\/p>\n\n\n\n

Pros and Cons of Amazon FBA<\/h3>\n\n\n\n

Over 50% of Amazon merchants use FBA for their logistics needs. It accounts for over 5 million sellers worldwide and is the preferred choice for most sellers. Still, it isn\u2019t without its drawbacks. <\/p>\n\n\n\n

Pros of Amazon FBA<\/h4>\n\n\n\n