What is FBM? Pros & Cons of Amazon FBM

What are the main advantages of FBM?

The main benefits of Fulfillment by Merchant include lower costs since there are no monthly storage fees, full control over packaging/shipping options, easier inventory management using Amazon’s system, and higher profit margins.

What are the biggest disadvantages of using FBM?

Potential downsides of FBM include having to handle all inventory management and shipping tasks yourself, overhead costs like packaging materials and labels, and having to compete against other sellers using the same fulfillment method.

Should I choose FBM or FBA for my Amazon business?

It depends on factors like your number of products, existing warehouse capacity, how much control vs convenience you want, and your ability to handle operational tasks like order fulfillment. Compare FBM and FBA to pick the right model.

Can I use Amazon's fulfillment centers with FBM?

Yes, with FBM you have the option to either fulfill orders from your own warehouse or have Amazon fulfill orders using their network of fulfillment centers while still handling shipping.

Do I need to pay any monthly fees for FBM?

No, one of the main benefits of FBM is there are no monthly storage fees like there are for FBA. You only pay Amazon directly for orders fulfilled through their centers.

Can I customize packaging and shipping with FBM?Yes, FBM gives you full control over packaging options and shipping methods. You can choose packaging that fits your brand and budget along with faster shipping speeds.

Is there less competition for the Buy Box with FBM?FBM gives you the ability to compete for the Buy Box by offering low prices or fast shipping times. However, there is still typically high competition from other FBM sellers.

‍