Amazon FBA v/s FBM

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Amazon FBA v/s FBM
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What Is Amazon FBA
Fulfillment by Amazon FBA is simply using
services provided by the Amazon fulfillment
program to the seller rather than his own
resources.
Advantages of FBA

• Simplified returns process.
• Retail operation open 24/7 Service.
• It provides extra time to grow the business.
• Almost every FBA Seller gets the Buy Box, which
  is ideal for any product.
• Almost every FBA Seller gets the Buy Box, which
  is ideal for any product.

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What Is Amazon FBM
Fulfillment By Merchant (FBM) is a process when
the seller has self-control over the entire
process of its storage and shipping. Rather than
paying Amazon a service fee and sending inventory
to manage
Advantages of FBM

• No unexpected costs.
• Easy to build an independent brand.
• More control over the product inventory.
• Seller maintains self-control over the business.

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FBA (Fulfillment By Amazon)
PROS

• Prime Eligibility.
• Buy Box Advantage.
• Low Shipping Rates.
• Multichannel Fulfillment.
• Hands-Off Fulfillment

CONS

• Additional Charges.
• Limited Access to Inventory.
• Quality Compromise.
• Pricey-Multichannel Fulfillment.
• Tax Obligations.

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FBM (Fulfillment By Merchant)

• Prime Opportunity.
• Hands-On Fulfillment.
• Less Amazon Charges.
• High Margin.
• No Unexpected Costs.

PROS
CONS

• More Responsibility.
• Not Automatically Prime Eligible.
• Overhead Cost.
• Lower Conversion.
• Elusive Buy Box.

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Which Option Is Best for You (FBA or FBM)?
While deciding between FBA vs FBM whether
Fulfillment by Amazon, Fulfillment by Merchant,
or a combination of the both while SFP is the
best option for your company. you must analyze
the size of your business and its potential for
improvement, the product segments that you sell,
and what aspects of your business you are looking
to invest.
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FBA or FBM Choice Is Yours
FBA is best for high-volume products along with
High margins. FBA fulfillment is for sellers who
are ready/willing to drop the selling price to
the lowest possible profit point if need be.
FBM is best for small scale, small margin, or
one-offs. FBM Fulfilled allows sellers to take
control of the fulfillment process without
cutting their margins.
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