If you’re considering selling on Amazon, you’ve probably come across the terms “FBA” and “FBM”. But what do these terms mean, and how do they affect your business?
In this blog post, we’ll take a closer look at the difference between Amazon FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant) models, so you can make an informed decision about which one is right for you.
What is Amazon FBA?
Fulfillment by Amazon (FBA) is a service offered by Amazon that allows you to store your products in Amazon’s fulfillment centers. When an order is placed, Amazon will pick, pack, and ship the item to the customer on your behalf. This means that you don’t have to worry about the logistics of storing and shipping your products. FBA also handles customer service and returns, so you can focus on growing your business.
What are the benefits of Amazon FBA?
- Prime eligibility: When you use FBA, your products become eligible for Amazon Prime, which can greatly increase your sales. Amazon Prime customers are known to be loyal and spend more on the site, so this is a huge advantage.
- Increased visibility: Products fulfilled by Amazon are given higher visibility on the site, increasing your chances of being found by potential customers.
- Convenience: With FBA, you don’t have to worry about the logistics of storing and shipping your products. This frees up time and resources, allowing you to focus on other aspects of your business.
What is FBM?
Fulfillment by Merchant (FBM) is the traditional method of selling on Amazon, where you are responsible for storing, packing, and shipping your own products. You also handle customer service and returns, so you have full control over the customer experience.
What are the benefits of FBM?
- More control: When you fulfill your own orders, you have complete control over the customer experience. You can customize your packaging, choose the shipping method, and handle customer service in a way that aligns with your brand.
- Lower fees: With FBM, you only pay a referral fee on each sale, rather than the storage and fulfillment fees associated with FBA.
- Flexibility: With FBM, you have the flexibility to store your products wherever you choose, rather than relying on Amazon’s fulfillment centers.
So, which one is right for you?
The decision between FBA and FBM ultimately comes down to your business goals, resources and how much time you’re willing to commit. Here at Champion, we build, manage and scale wholesale, Amazon FBA stores.
This allows us to scale at a large level, and generate true hands-free recurring revenue for our clients. The FBA model ensures that we will not run into any limitations, restrictions or suspensions that are possible in other models.
Additionally, we offer all clients the opportunity to to recoup 100% of their initial capital contribution prior to any profit splits. Offering a truly premier service with incredible financial upside. Of course we believe wholeheartedly that an Amazon store built and managed through Champion is superior to many other Amazon automation offers on the market, we do always encourage you to do your research! At the end of the day the most important thing is to find a model that works for you and your goals, so you can focus on growing your hands-free recurring revenue.