04/02/2022
FULFILLED BY MERCHANT VS FULFILLED BY AMAZON
The first decision you will be faced with when running your Amazon business is to decide if you will arrange the delivery of orders yourself, or get Amazon to deliver for you.
This is known as Fulfilled by Merchant (FBM) or Fulfilled by Amazon (FBA).
Different sellers have different views on which method is best, but before we share our views with you it might be a good idea to briefly talk about each one.
Fulfilled by Merchant (FBM)
In FBM, the seller is responsible for shipping products from their own home or business when they have been informed by Amazon that a sale has been made.
It goes without saying that this means the seller has to pack the order, make arrangements for shipping, and be responsible for the customer service in relation to the order.
The cost of storing the products should also be taken into account as warehouse costs can soon mount up.
Fulfilled by Amazon (FBA)
In FBA, the seller sends their stock to an Amazon Fulfillment Center and Amazon basically takes care of everything from there When an order is placed an Amazon employee will pick the product from the storage, and it will then be packed and shipped using Amazon's trusted shipping partners.
Amazon will also provide customer service in relation to the products which are sold through the FBA program.
This service does obviously not come without charges, and this is the main reason why some sellers choose FBM over FBA.