FBM (Fulfillment by Merchant)

Fulfillment by Merchant (FBM) is a method of selling on e-commerce platforms where the seller is responsible for storing, packing, and shipping the products to customers. Unlike Fulfillment by Amazon (FBA), where Amazon handles storage, packaging, and shipping for a fee, FBM requires the seller to manage these aspects of the order fulfillment process themselves. This gives sellers more control over their inventory and shipping processes but also requires them to handle logistics and customer service directly.
 

       Advantages of FBM:
 

• Lower Costs:
  
  Sellers save on warehousing and processing fees that Amazon has to pay for its FBA service.

          They can manage their own logistics and storage costs more flexibly.
 

• More Control:
  
  Sellers can fully control their inventory and fulfillment processes. 
  It is easier to manage and track products in their own warehouses
   

 

• Flexibility:
  
  Sellers can choose their own shipping carriers and methods.
  They can implement their own customer service and return policies.
  
  
  Disadvantages of FBM

 

• More Workload:

          Sellers have to manage all processes such as fulfillment, packaging, shipping and customer service themselves.
          This requires more workload and time.
 

• Logistics and Storage Needs:

          They need to set up and manage their own warehouses and logistics systems.
          This can increase start-up costs and pose operational challenges.
 

• Lack of Amazon Prime Benefits:

          FBM sellers' products do not offer fast delivery to Amazon Prime members.
          This may affect some customers' preferences and reduce sales.

       Who Should Choose FBM?

 

       FBM is particularly suitable for sellers who have their own logistics and warehousing systems or want to set them up. It is            also an ideal option for sellers who want to retain control of their products and don't want to incur FBA costs. Sellers who              prefer to manage their own customer service and implement their own return policies can also consider the FBM model.

      When choosing between FBM and FBA, it is important to consider the advantages and disadvantages of both models and            choose the one that best suits your business model.