What is Amazon FBM (Fulfilled by Merchant: How it Works and How it Compares to Fulfilment by Amazon (FBA)
Amazon is one of the largest E-commerce business platforms in the world. Other examples of E-commerce are Alibaba, Daraz etc. Amazon is the most trusted E-commerce business by the customers to buy the product online. Most of the products listed on Amazon are purchased from China, due to cheap cost and sold around the world. Amazon offers multiple delivery and payment options to its customer for their convenience. The top two most preferred methods of fulfillment are FBA Fulfillment by amazon and FBM Fulfillment by merchant. FBM is also known as merchant fulfilled network. We can compare FBA vs FBM to better understand in detail both options.
In today’s we will discuss in detail fbm amazon meaning, FBA vs FBM, how amazon fulfillment works. Our blog is very helpful for new businesses that want to understand the amazon fulfilled by merchant.
FBA Fulfillment by Amazon
FBA is the amazon fulfillment option in which amazon handles the storage, packaging, delivery, fulfillment of the product. Fulfilled by amazon meaning FBA.
FBM Fulfillment by merchant
FBM is the fulfillment option in which the seller is himself is responsible for the storage, packaging, and delivery of the product. However, his product is listed on Amazon. Amazon charges a referral fee and monthly subscription for this type of fulfillment. Amazon fbm shipping rates are usually cheaper than FBA because it is handled by the seller himself. In FBM the order is fulfilled by merchant. in fbm sipping cost is managed by the seller.
FBA vs FBM
Although both FBA and FBM are fulfillment options of amazon, to better understand them, we need to compare FBA vs FBM. Following are the main difference in FBA vs FBM:
- Fee Structure:
In case of merchant fulfilled orders FBM usually involves lesser fees as compared to the FBA. In FBM fulfilled by seller does not attract high storage fee as it is in the case of FBA. We can say that FBM amazon merchant fee is cheaper than FBA for seller
- Prime Amazon Badge display:
In case of amazon fulfilled by seller FBM there is no amazon prima badge on the product. In case of FBA the product carries an amazon prime badge, which helps in increasing the trust of customers on the product.
- Branding
In the case of amazon merchant fulfilled FBM the product is delivered to the customer in the seller’s own packing. This will help the customer in branding its product. In the case of FBA, the product is delivered in amazon packaging.
- Transportation & Shipping:
In the case of FBM, the product listed on amazon transportation for merchants is the responsibility of the seller himself. Mean FBM amazon- Transportation for merchants is being managed by the seller through their own source. In the case of FBM, the product listed on amazon transportation for merchants is the responsibility of the seller himself. Mean FBM amazon- Transportation for merchants is being managed by the seller through their own source.
Conclusion:
Amazon is one of the largest E-commerce businesses, providing services to the seller listing their product on Amazon, there are a lot of options available on Amazon for the fulfillment of customer orders. The most used options are FBA fulfillment by amazon and FBM fulfillment by merchant. FBM is sometimes are known as merchant fulfilled network. To understand the difference between FBA and FBM, we can compare FBA vs FBM. The ability to brand the product on amazon, fewer fees on FBM compared to FBA is the major advantage of FBM. The major disadvantage of FBM as compared to FBA is the non-display of the amazon prime badge. Although both modes have their own pros and cons. It depends upon the business size and sales volume to decide which method best suits a company.
