What is FBM and FBA? In the ever-growing world of e-commerce, Amazon has established itself as a force, providing a platform for millions of sellers to reach a vast audience. As an Amazon seller, it’s crucial to understand the various fulfillment options available to you. Two commonly used methods are Fulfillment by Merchant (FBM) and Fulfillment by Amazon (FBA). In this article, we’ll explore the differences between FBM and FBA, to help you make decisions about your business.

What is FBM and How Does it Work?

Fulfillment by Merchant (FBM) refers to the fulfillment method where you handle all aspects of order fulfillment, including storage, packaging, and shipping. 

With FBM, you have direct control over your inventory. You maintain your stock, determine storage locations, and handle the logistics involved in managing inventory levels. This level of control can be advantageous for sellers with unique products or those who prefer to have full control over the fulfillment process. With FBM, you are responsible for shipping and delivering your products to your customers directly. You have the option to choose your preferred shipping provider; you can even sign up with Shiplifier to get up to 75% off on shipping rates.

As an FBM seller, you would also be responsible for customer service concerns and returns. Direct communication with your customers will help you build strong relationships with them and establish trust and loyalty in your brand.

What is FBA and How Does it Work?

Fulfillment by Amazon (FBA) allows you to store your products in Amazon’s fulfillment centers. Once an order is received, Amazon takes care of storage, packaging, and shipping, as well as customer service and returns handling. FBA simplifies inventory management by allowing you to store their products in Amazon’s fulfillment centers. Amazon handles inventory tracking, ensuring stock availability and managing the logistics of fulfillment. You can then focus on other aspects of your business, such as product sourcing and marketing, without worrying about warehousing and inventory control. With FBA, Amazon takes care of shipping and delivery for you. With Amazon’s extensive network, delivery is often fast and efficient and Prime customers even get added benefits.

Amazon also handles FBA sellers’ customer service and return program. They would handle inquires for you and manage returns on your behalf.

Choosing between FBA and FBM will depend solely on your business goals and requirements. On one hand with FBM, you are fully independent in the order processing, fulfilling and managing processes, whereas on the other hand, FBA streamlines those processes for you.