FBA vs. FBM – How FBM is Winning for Amazon Sellers
Why You Should Adopt This Business Model
I love selling on Amazon–and one of the reasons that I do is because of the community that I have become a part of during this journey. I’m an encourager by nature, so one of the things I love the most about selling is the opportunity I get to experience celebrating other sellers’ success.
So this past week, in my community of sellers, I am seeing a number of sellers crush it by changing their selling model temporarily from FBA to FBM (Merchant-Fulfilled).
What is FBM?
FBM sellers list their products on Amazon and choose to ship products to each buyer by themselves. In other words, sellers are responsible for fulfilling their orders and do not rely on Amazon for the same. While it is a rather advantageous method for products with lower margins, FBM Amazon is rather overlooked owing to easy shipping, handling, and other benefits that come with Amazon FBA.
Now that Amazon is primarily the one-stop-shop for all things “essential”, FBA is no longer an option for fulfillment centers to ship out non-essential goods. Amazon instead is giving preference in shipping to what it deems as essential products that are in their warehouses. But because of the high demand, Amazon centers are lagging behind third-party sellers displaying later shipping dates on many of their essential FBA listings.
While third-party sellers have lost their FBA and Prime Buy Box options, this change has now allowed them to gain a foothold in the increasing market of toys, games, and even the coveted essential household supplies during the COVID-19 epidemic. FBM sellers can now rise above the chaos due to their faster shipping times. And, because Amazon’s goal is always customer-friendly, its own algorithm has shifted in favor of those third-party FBM sellers who can promise faster shipping and personal customer service.
Are you an FBA seller who has not made the shift to FBM? What are you waiting for? This is a great time to learn how to fulfill your own products and capture sales you might be missing out on!