When is Amazon FBM a viable option for Amazon sellers and how do sellers sell and ship products?
Amazon has become one of the most competitive and complex online marketplaces in the world. Due to the competitive nature of the industry and the current COVID-19 panemic, Amazon sellers have been forced to reconsider the most effective fulfillment methods to help them compete successfully against other retailers.
One solution for sellers is FBM (Fulfillment by Merchant). With FBM, seller do not rely on Amazon FBA warehouses or shipping options. Amazon sellers are responsible with fulfilling their customer’s orders.
How to Sell Products with Amazon FBM
Amazon is a great place to build or expand a business and earn extra income. More than 50 percent of Amazon sellers claim that their first entrepreneur experience was on Amazon.
Here is a list of simple steps to set up FBM selling on Amazon:
1) Select Desired Marketplace: There are 14 Amazon marketplaces available globally. Amazon sellers are free to sell their products in any marketplace. However, experts recommend following these important guidelines:
- It is best for US sellers to sell on the US marketplace
- Sellers in the UK or EU, sell on the Amazon EU marketplace
- More so, if the seller lives elsewhere in the world, sell on the US marketplace.
2) Determine Business Model
There are several business models for Amazon sellers. Some of the most popular business models for Amazon are:
3) Choose the Fulfillment Method
As we have discussed, there are two main fulfillment methods on Amazon – Amazon FBA and Amazon FBM. With Amazon FBM, the seller lists the products on Amazon, while also managing the storage, shipping, and customer support.
4) Create an Amazon Seller account
Create an Amazon Seller Central account. Prepare all the information needed to easily create an account.
5.) Create Product Listing
When Amazon approves your Seller Central account, sellers can immediately list their products and they will appear in the Amazon catalog.
6.) Fulfill Customer Orders
Amazon sellers have to fulfill the order after products are purchased by the customer. Selling products through Amazon FBM entails sellers to handle and ship their own products.
How to Ship Products with Amazon FBM
Amazon sellers need to consider product size, carrier and method to ship products with FBM. Most carriers require sellers to have their own shipping supplies. Some of the supplies that needed are:
- Box, Envelops
- Packing Materials
- Mailing Labels
- Packaging and Scotch Tapes
Amazon will notify the seller if the order is ready to ship, the seller will have 24 hours to confirm the order. After this, choose a trusted carrier. Remember, the carriers have different shipping rates.
Both Amazon FBA and FBM provide sellers with successful fulfillment options. The size of your operation and the weight and size of your products is often a deciding factor for sellers.