Amazon FBA and FBM – EXPLAINED!

The main difference between Amazon FBA and FBM is the person in charge of the fulfillment process. FBA outsourcing it to Amazon and FBM requires sellers to handle all of it by themselves. Each option has its own pros and cons based upon factors like sellers’ preferences, as in addition to the size of the company and its capabilities in logistics.

1: Amazon FBA (Fulfillment by Amazon)

In the Amazon FBA business model, Amazon sellers can ship their products to Amazon’s fulfillment centers. Amazon handles the packing, storage and delivery of the Products to customers. Amazon also handles returns and customer service in the event of FBA-based orders. This allows sellers to benefit from Amazon’s massive infrastructure, Prime shipping benefits, and much more.

So, Amazon FBA Seller can focus on other things like advertisement, product hunting, Branding and much more to grown the business.

2: Amazon FBM (Fulfillment by Merchant)

Amazon FBM sellers manage everything that is related to fulfillment by themselves. This includes stocking inventory and packaging orders, keeping them and then shipping directly or with amazon shipping services to the customers. Sellers who use the Amazon FBM business model are responsible for handling customer service inquiries as well as handling return requests.

if you just started amazon business and want to test the product or Amazon business model then its fine to work with Amazon FBM. Sometime the product are big in size and heavy weight. in this situation Amazon FBM business model is better then FBA.

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