Amazon e-commerce sellers often use two methods of delivery: FBA and FBM. As more and more people enter the Amazon cross-border e-commerce platform, choosing FBA or FBM has become a question worth considering.
1. FBA (Fulfillment by Amazon).
1. FBA is a logistics service provided by the Amazon platform. Sellers store their inventory in Amazon warehouses. When there is an order, Amazon will be responsible for packaging, delivery, and after-sales service. Sellers need to transport the goods to the Amazon warehouse, then set the price and inventory information in the seller center, and then Amazon will automatically handle the order and delivery process.
2. FBA has the following advantages:
Faster delivery time: because Amazon’s logistics system can process and deliver orders faster;
Higher customer satisfaction: because the customer service and return services provided by Amazon can provide a better shopping experience;
Lower operating costs: because sellers do not need to invest a lot of money in their own logistics systems and warehouses;
2. FBM (Fulfillment by Merchant).
1. FBM means that the seller undertakes the logistics service by itself, that is, under the FBM model, the seller needs to manage its own inventory and order processing process, including accepting orders, packaging goods, marking order status and express delivery. Sellers can use their own logistics suppliers or third-party logistics services to handle order distribution, but they also need to handle product returns and after-sales service.
2 FBM has the following advantages:
Higher control: Sellers can fully control the order processing process, including inventory management, order processing, packaging goods and delivery, to better maintain their brand image and service quality.
More flexible pricing strategy: Sellers can decide the pricing of their products without considering Amazon’s FBA service fees and other surcharges.
Can reduce costs: Sellers can choose to use their own warehouses or third-party warehouses to store and manage inventory, which can reduce warehousing costs and other costs associated with cooperation with Amazon.
In short, FBA and FBM are two different seller distribution plans, each with its own advantages. For Amazon’s cross-border e-commerce sellers, it is necessary to formulate a plan based on their own situation and goals to maximize benefits. Before choosing FBA or FBM, sellers need to consider which business model, target market, and product type to choose. If sellers operate products with large inventories and high sales, it may be more convenient to use FBA because it can provide fast and reliable distribution services and reduce the cost and workload of logistics and inventory management. If sellers operate products with small inventories and low sales, FBM may be a better choice because it can more flexibly meet the needs of cross-border e-commerce sellers and reduce costs.