WHAT IS FULFILLMENT BY THE MERCHANT (FBM)?

Published By Blog Breed

Selling on Amazon is a big deal. It allows your brand and products to grab maximum eyeballs. As a result, you are more likely to increase brand awareness as well as sales along the way. Though a vast majority of Amazon sellers still opt for FBA (Fulfillment By Amazon) to fulfill orders, FBM (Fulfillment By Merchant) is quickly becoming mainstream.

By choosing FBM, sellers take the responsibility to fulfill orders on their own. Amazon will have no business in storing, packing, and shipping your products. At first blush, it might seem like a massive disadvantage. But FMB actually brings countless benefits to your disposal. Let’s dive into them without further ado:

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FBM Advantages

• More Inventory Control: FBM enables you to maintain solid control over inventory. That way, you can deal with last-minute complications much more effectively. FBA does not offer this luxury to sellers.

• Affordability: Hiring third-party logistics companies is a budget-friendly option because you can always negotiate rates with them. Besides, they offer hefty discounts to their customers from time to time. You have more chances to qualify for discounts if you happen to be a high-volume retailer.

• Customized packaging: With FBM, sellers can add an element of personalization to their packaging. It will not only beef up your branding but also ensure a memorable unboxing experience for your customers. What is more, you can even leverage promotional messages through customized packaging. Considering the cutthroat competition in the online space, tailor-made packaging will make sure you cut through the noise and stand out among your competitors.

• Peace Of Mind: When you subscribe to FBM, you bid farewell to abrupt policy changes once and for all. Third-party service providers never come up with big announcements without taking their customers into confidence. So you will be able to get on with business operations very smoothly, with little to no possibility of getting caught up in the middle of nowhere 

Things To Look While Hunting For A Third-Party Logistics Company

As far as shipping and handling are concerned, FBM adds to the convenience of Amazon sellers big time. But, at the end of the day, it all comes to getting hooked up with the right third-party logistics company. If you fail to do so, FBM might not prove to be as productive for your online business.

Here are the factors that you need to take into account while searching for a fulfillment service provider:

Location

The current breed of customers expects fast delivery. In fact, as many as 49 percent of consumers admit that same-day delivery makes is one of their biggest preferences while shopping online. That is where the location of your fulfillment service provider can be very critical. To make the most of FBM, it is necessary to find a third-party logistics company that is well within the proximity of your customers.

Technology

Like other businesses, technology has influenced how fulfillment service providers go about their operations. An ideal fulfillment center would be one that is on top of tools to complement data reporting, inventory management, and other complicated tasks.

Customer Support

Outside factors can occasionally hamper the delivery process. However, a flawed communication process that does not keep clients posted about such issues is very off-putting. Therefore, you should make sure your fulfillment partner is on top of the customer support.

The Final Verdict

FBM has made life a lot easier for online sellers. Since running an online business requires you to wear too many hats, FBM will unburden you from several responsibilities and make your business more profitable.