Detailed explanation of Amazon FBM model: cost considerations, product selection standards and operation guide
On the Amazon platform, FBM (Fulfillment by Merchant), as a common operating model, provides sellers with many conveniences. This article will comprehensively analyze the Amazon FBM model from aspects such as cost considerations, product selection standards, and back-end operations.
Cost considerations of FBM model
The costs of the FBM model mainly include product costs, shipping costs, Amazon commissions, advertising fees and other related expenses. Compared with the FBA model, the FBM model can help sellers effectively reduce costs, especially in warehousing and distribution. By choosing their own logistics partners, sellers can save money to a certain extent.
Product selection criteria
Choosing the right products is the key to Amazon FBM success. Here are some must-know product selection criteria:
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Market demand: It is crucial to choose products that meet market demand. The target market should be analyzed in depth to understand the real needs of consumers.
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Market capacity: Choose products with a certain market capacity to avoid overly competitive Red Sea products or Dead Sea products with too little demand.
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Profit margin: Choose products with high customer unit prices and large profit margins. The recommended selling price range is US$15-75.
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Product Size: Consider selecting larger products to reduce competitive pressure.
Backend Operation Guide
After selecting a suitable FBM logistics channel, the seller still needs to make relevant settings in the Amazon backend. The specific steps are as follows:
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Shipping settings: Set up a logistics freight template, select a suitable freight calculation method, and adjust the template as needed.
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Return settings: Including general settings, non-return settings and return address settings, etc. to ensure smooth returns for buyers.
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Order processing: Complete order management through functions such as “Manage Orders”, “Order Reports” and “Manage Returns”.
Advantages and Disadvantages of Postal Parcel
As one of the commonly used logistics methods of FBM, postal parcel has the advantages of low cost and wide coverage. However, timeliness and packet loss rate issues are also disadvantages that cannot be ignored.
Summary
The FBM model provides sellers with greater flexibility and cost control capabilities. But at the same time, attention needs to be paid to careful management of logistics and inventory to ensure timely delivery of orders. Through reasonable product selection and backend settings, sellers can make full use of the advantages of the FBM model to achieve business growth.
To sum up, the FBM model is suitable for sellers who pursue flexibility, cost-effectiveness, brand uniqueness and multi-channel sales. As the market evolves, FBM will become the future trend of flexible operations.