Amazon Merchant Managed (FBM)
Take control of inventory and manage your orders placed on Amazon with Amazon Logistics’ fulfillment method, a useful tool for small and medium-sized businesses starting out in online selling.
What is Amazon Fulfilled by Merchant (FBM)?
It is Amazon’s method of fulfillment where you, as an Amazon seller, are responsible for fulfilling the shipping and logistics of your products purchased on Amazon. FBM can be handled directly by the seller or in partnership with a third-party logistics service provider.
In lieu of your products having Prime status and using Amazon to manage fulfillment, the merchant is responsible for inventory management, order fulfillment, returns, and customer service.
The merchant fills orders when their products are sold on Amazon, either through self-fulfillment or through a third-party fulfillment center.
Because FBA requires some approvals, a demonstrated inventory turnover, and takes time to set up, Amazon FBM is often the only fulfillment method available to new merchants selling on Amazon.
Amazon is a good place to start.
Once you have created an account on Amazon Seller Central, you can start listing your products. Be sure to include the necessary information in your listings to help improve your chances of conversion using images, videos, text and more.
Organize your products in your own distribution center.
You can distribute your products in strategic locations to save shipping costs and reduce the average shipping area, depending on the number of fulfillment centers you have at your disposal. A warehousing center can be a temporary storage solution if your company is still small.
Deliver orders on time.
When you receive an order notification, you must ship the product within the delivery time specified by the customer. On the offer and checkout pages, Amazon shows customers an estimated delivery time so they know when to expect the item they ordered from you. This takes into account handling and transit times.
Finally, for all Fulfilled by Merchant orders, be sure to update your Amazon selling account with valid e-commerce return instructions. When you approve a buyer’s return request, Amazon sends them a return label with your default return address, which must be a valid address.
Amazon FBM Advantages
Understand how your product logistics work
Sellers maintain a sense of command over their company. Managing all the numbers and inventory on their own gives them an advantage over the competition in the long run.
The seller has full control over how the business is run.
Product self-stocking provides better inventory control by gaining the ability to scale.
Having an offline and online retail store is possible.
Manage both online and offline retail stores with a single inventory. Use the same inventory holdings to manage an offline retail store, all without additional shipping or delivery charges.
It is more feasible to create an independent brand.
A FBM salesperson must communicate with their customers on a one-to-one basis. By being closely connected with their customers, they gain a greater understanding of their needs and complaints, as well as gaining insights, feedback and ideas for their business.
Margin increase.
No hidden commissions.
Sellers get a better percentage of profit margins when FBA costs are not taken into account. They save money on fulfillment fees, identify the best and cheapest warehouse and save shipping costs.
Changes in Amazon's rules have resulted in fewer unavoidable losses.
Amazon’s rates and fulfillment policies change often. So does the collection of long term storage costs for items that have been in Amazon’s warehouse for a long period of time. These are NOT issues that a FBM supplier has to deal with.
Less paperwork, especially with states that have no sales tax.
A seller on Amazon has two inescapable headaches. The first is Amazon compliance taxes, and the second is a mountain of paperwork. Both of these problems do not exist for an FBM seller.
Is the Spainbox method for you?
Fulfilled by Merchant on Amazon is an excellent option for Amazon sellers. Working with a 3PL like Spainbox to deliver high-demand products can be beneficial to your business, especially if you can offer an Amazon Prime experience like Spainbox does.
Request a Spainbox fulfillment quote to learn more about how we can help you with Amazon FBM fulfillment.
