Amazon FBA vs FBM: Which Is Really Better?
What is the difference between selling on Amazon using Fulfillment by Merchant (FBM) and Selling on Amazon using Fulfillment by Amazon (FBA)? If you’re thinking of starting an eCommerce business, then this article will help you understand how to choose between these two options. We’ll also look at some of the pros and cons of each option, so that you can make a more informed decision about which one is best for your business.
We’ll also take a look at some of the benefits and drawbacks associated with each option so that you can decide whether or not they are right for your business. Finally, we’ll give our verdict on which method we think is better overall. So let’s get started.
What is Amazon FBA?
Selling on Amazon’s FBA platform means that you send your products to one of their warehouses, where they will be stored while you manage the sales side of your business. Amazon will then package and ship the item for you when someone places an order.
Once it reaches its destination, Amazon will also handle customer service, returns, and refunds.
What is Amazon FBM?
The merchant-fulfilled model, or FBM for short, means that you essentially become the shipping department of your business. When someone makes an order, you will be responsible for selecting the product, packaging it up, and delivering it to the customer’s door. There isn’t much in the way of customer service, returns or refunds to worry about, as Amazon doesn’t get involved in this process.
The Pros and Cons of Amazon FBA
The Pros and Cons of Amazon FBM
Amazon FBA vs FBM: Which is Better between them?
Now that we have looked at the pros and cons of both Amazon FBA and FBM, it is time to decide which is better for you.
If you are looking for a more hands-on approach to your business, the FBM model may be a better option. It will allow you to have more control over your business and be a good option for those who need a side hustle alongside their main job.
However, suppose you are looking to grow your business and exposure or focus more on customer service. In that case, Amazon’s FBA is a better option as it has access to Amazon Prime benefits and makes it easier to provide great customer service.
You might want to know more options so here’s another blog you can read: Amazon FBA vs Dropshipping vs Affiliate Marketing: Where to Start?.
Frequently Asked Questions
Can I use both Amazon FBA and Amazon FBM?
Yes, you can use both Amazon FBA and Amazon FBM. It is possible to run your business alongside your main job using the FBM model while also having access to Amazon Prime benefits with Amazon’s FBA service.
How much does it cost to use Amazon FBA?
There are costs associated with using any of Amazon’s services, but they will generally be less than what other businesses charge for their fulfilment services.
Is it worth it to get an Amazon FBA account?
It depends on your goals with the business. If you are looking to grow your company or offer better customer service, having access to Amazon Prime benefits is an excellent reason to use their FBA service.
The FBM model may be a good option if you are starting out then, as it is often cheaper than using Amazon’s FBA services. Still, if you want to grow your business or need more support with customer service, then Amazon’s FBA is probably a better choice.
When choosing between Amazon FBM and FBA, there are benefits and costs to both. If you want to provide the best customer service, then go with Amazon’s FBA services, but if you would prefer more control over your business, then go ahead and use the FBM model. That said, for either of these options to be successful, you will need to ensure that your products are received on time by your customers so that they can leave great reviews.