In the vast field of cross-border e-commerce, choosing the appropriate fulfillment model is crucial for sellers. Today, we will make a comprehensive comparison of Amazon’s two main fulfillment models – FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant) to help sellers make wise choices on the road to cross-border e-commerce.
1. FBA model: worry-free logistics
Advantages:
Fast and convenient: Amazon is responsible for storage, packaging and delivery, allowing you to focus more on business development.
Prime membership service: FBA products can enjoy Prime members’ fast delivery service, improving competitiveness.
Global coverage: Amazon FBA supports global coverage, which helps to expand the scope of sales.
Disadvantages:
Storage fees: The FBA model requires corresponding storage fees, especially for products that are stored for a long time.
Cost structure: The cost structure of FBA is more complicated than that of FBM, and requires more detailed accounting.
2. FBM model: self-management
Advantages:
Cost control: Under the FBM model, sellers can control costs more directly and reduce storage and fulfillment costs.
Self-operation: Sellers have more flexibility to manage inventory and can set their own packaging standards and transportation plans.
Direct customer service: Sellers can directly handle and control customer service to provide a more personalized experience.
Disadvantages:
Fulfillment work: Sellers need to be responsible for storage, packaging and delivery work by themselves, which requires more time and energy.
Delivery speed: Failure to enjoy FBA’s Prime membership fast delivery service may reduce certain competitiveness.
3. How to choose?
FBA is suitable for:
Limited time and energy, hoping to outsource the fulfillment process to Amazon.
Sellers pursuing fast delivery and Prime membership services.
Hope to expand into the global market and make full use of Amazon’s global logistics network.
FBM is suitable for:
Sellers who have enough time and resources to manage their own fulfillment process.
Sellers who want to directly control inventory and costs.
Sellers who focus on specific markets or customized services and do not emphasize fast delivery.
Choosing FBA or FBM depends on the seller’s business model, resource investment and operating strategy. Sometimes, a hybrid model can also be adopted, choosing different fulfillment methods according to the characteristics of the product. No matter which model the seller chooses, the key is to make appropriate decisions based on their own situation to achieve maximum benefits.