{"id":11602,"date":"2022-04-07T12:08:16","date_gmt":"2022-04-07T16:08:16","guid":{"rendered":"https:\/\/www.zonbase.com\/blog\/?p=11602"},"modified":"2023-03-22T06:55:31","modified_gmt":"2023-03-22T10:55:31","slug":"amazon-fbm-why-you-may-want-to-use-it-now","status":"publish","type":"post","link":"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/","title":{"rendered":"Amazon FBM: Why You May Want To Use it Now"},"content":{"rendered":"\n<p>In the last couple of years, you can say there has been an Amazon boom. The online retailer\u2014 which accounts for <a href=\"https:\/\/www.statista.com\/statistics\/788109\/amazon-retail-market-share-usa\/\" target=\"_blank\" rel=\"noreferrer noopener\">45% of the U.S. e-commerce market<\/a>\u2014 is home to over 6 million sellers according to <a href=\"https:\/\/www.marketplacepulse.com\/articles\/amazon-reaches-six-million-third-party-sellers\" target=\"_blank\" rel=\"noreferrer noopener\">Marketplace Pulse<\/a>. This number is only growing, with nearly <a href=\"https:\/\/channelkey.com\/top-ten-powerful-statistics-for-amazon-sellers-in-2021\" target=\"_blank\" rel=\"noreferrer noopener\">2,000 new sellers<\/a> joining each day. Despite the massive amount of competition, selling on Amazon is still a great source of income for those who have the resources and time to navigate the market.&nbsp;<\/p>\n\n\n\n<p> Most sellers on Amazon use FBA to sell their products, and you might even be one of them. However, there is an alternative method that many overlook. That method is called <strong>Amazon FBM<\/strong>, and it may be better for your business. In this article, we teach you everything you need to know about selling and how to do FBM on Amazon.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a06e7f578cf7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a06e7f578cf7\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#What_is_Amazon_FBM\" >What is Amazon FBM?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Whats_the_Difference_between_Amazon_FBM_and_Amazon_FBA\" >What\u2019s the Difference between Amazon FBM and Amazon FBA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Pros_of_Fulfillment_By_Merchant\" >Pros of Fulfillment By Merchant<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Fewer_Fees\" >Fewer Fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Greater_profit_margins\" >Greater profit margins<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Full_control_over_the_business\" >Full control over the business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Avoid_FBA_Strict_Regulations\" >Avoid FBA Strict Regulations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Less_unexpected_expenses\" >Less unexpected expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Able_to_build_your_independent_brand\" >Able to build your independent brand<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Cons_of_Fulfillment_By_Merchant\" >Cons of Fulfillment By Merchant<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Time-Consuming\" >Time-Consuming<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Shipping_may_cost_more\" >Shipping may cost more<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Customer_Service_is_your_responsibility\" >Customer Service is your responsibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#No_Amazon_Prime\" >No Amazon Prime\u00a0<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#It_requires_nearly_perfect_selling_ratings_and_other_criteria_listed_down_below\" >It requires nearly perfect selling ratings and other criteria, listed down below:&nbsp;<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#When_Should_You_Use_Fulfillment_By_Merchant\" >When Should You Use Fulfillment By Merchant?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#How_to_Get_Started_with_Amazon_FBM\" >How to Get Started with Amazon FBM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#How_Much_Does_Amazon_FBM_Cost\" >How Much Does Amazon FBM Cost?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Selling_plan_fees\" >Selling plan fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Referral_Fees\" >Referral Fees<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Tips_for_Selling_with_Amazon_Fulfillment_by_Merchant\" >Tips for Selling with Amazon Fulfillment by Merchant<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Ship_out_orders_on_time\" >Ship out orders on time&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Always_provide_tracking_numbers\" >Always provide tracking numbers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Have_a_good_return_policy\" >Have a good return policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Choose_where_to_store_your_inventory\" >Choose where to store your inventory<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.zonbase.com\/blog\/amazon-fbm-why-you-may-want-to-use-it-now\/#Conclusion_Our_Thoughts\" >Conclusion: Our Thoughts?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Amazon_FBM\"><\/span>What is Amazon FBM?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Amazon FBM<\/strong> stands for Fulfilled By Merchant and is sometimes referred to as Amazon MFN (Merchant Fulfilled Network). Amazon FBM is where sellers choose to ship their products to buyers themselves. This often involves sellers storing their own stock, packing and shipping orders, and dealing with all customer service inquiries and returns. Essentially, Amazon is just your listing venue, and everything else is done by you.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Whats_the_Difference_between_Amazon_FBM_and_Amazon_FBA\"><\/span>What\u2019s the Difference between Amazon FBM and Amazon FBA?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The only difference between the two is how the order is fulfilled. FBM orders are fulfilled by the seller while FBA orders are Fulfilled by Amazon. When sellers utilize Amazon FBA, they are able to send their inventory to an Amazon warehouse and have their orders shipped out from there by Amazon\u2019s shipping services.\u00a0<\/p>\n\n\n\n<p>Amazon sellers, on the other hand, handle their own inventory storage and order fulfillment. They are also in charge of customer service and returns.<\/p>\n\n\n\n<p>Both FBM and FBA have their own advantages and disadvantages. It is really up to the seller to choose which fulfillment services best suit their needs. But since the focus of this post is on FBM, we will discuss the pros and cons below.<\/p>\n\n\n\n<p><strong>Related<\/strong>: <a href=\"https:\/\/www.zonbase.com\/blog\/the-beginners-guide-to-amazon-fba-in-2021\/\" target=\"_blank\" rel=\"noreferrer noopener\">Beginners Guide to Amazon FBA<\/a><\/p>\n\n\n<!-- Error, Advert is not available at this time due to schedule\/geolocation restrictions! -->\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pros_of_Fulfillment_By_Merchant\"><\/span>Pros of Fulfillment By Merchant <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Despite having to do all the work, selling with Amazon comes with an array of advantages. We detail some for you down below:&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fewer_Fees\"><\/span><strong>Fewer Fees<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A major benefit of Amazon Fulfillment by Merchant is having to pay fewer fees. While using FBA can take away many of the tedious tasks of selling on Amazon, the charges are pricey and quickly add up. The FBA costs include monthly storage, order fulfillment, handling fees, and more. Depending on your business, you can also see other costs, such as high-volume listing charges. With FBM, you will still incur some fees, but you won&#8217;t have to pay most FBA fees. We will discuss the cost of using Amazon FBM shortly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Greater_profit_margins\"><\/span><strong>Greater profit margins<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Because of the fewer fees, sellers on Amazon often see wider profit margins per item than those using FBA. However, this is not a given, so make sure you calculate your other costs correctly and negotiate the best prices for stock and shipping.\u00a0You can easily do this and validate potentially profitable products using ZonBase&#8217;s Amazon <a href=\"https:\/\/www.zonbase.com\/sales-estimator\" target=\"_blank\" rel=\"noreferrer noopener\">Sales Estimator<\/a>. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Full_control_over_the_business\"><\/span><strong>Full control over the business<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Fulfilling all your orders yourself gives you complete control over your business and products at all times. When you are involved in the entire selling process, it becomes easier to track your inventory and the progress of each order, leading to fewer mishaps as long as you are on top of everything. Also, you will be able to quickly increase your stock when needed, making it easier to expand your business.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Avoid_FBA_Strict_Regulations\"><\/span><strong>Avoid FBA Strict Regulations<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>While using FBA would make it easier for you as a seller, you would have to follow its strict policies and requirements. There are rules concerning many aspects of the business, such as product titles, barcodes, and shipping labels. With this, however, you get to bypass all those standards and just focus on item quality and shipment.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Less_unexpected_expenses\"><\/span><strong>Less unexpected expenses<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>FBA sellers can be affected by increased costs due to Amazon policies or long-term storage charges. Luckily, FBM sellers do not have to deal with those hassles and instead just have to focus on their own stock, storage, and shipping. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Able_to_build_your_independent_brand\"><\/span><strong>Able to build your independent brand<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When you\u2019re selling using Fulfillment by Merchant, you will have to provide customer service rather than relying on Amazon to do so. While this may sound like more work for you to do, it actually is beneficial in creating your own brand. By talking to customers, you better understand what they want and what you should improve on as a seller.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cons_of_Fulfillment_By_Merchant\"><\/span>Cons of Fulfillment By Merchant<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While there are many advantages to using FBM, there are also drawbacks that make using FBA the more appealing option for some.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Time-Consuming\"><\/span><strong>Time-Consuming<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Managing your business is already tedious by itself, but dealing with shipping is another monster. When using FBM, you will have to dedicate many hours a week to picking and packing your orders and just overall be super hands-on in the process.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Shipping_may_cost_more\"><\/span><strong>Shipping may cost more<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>While you are definitely saving on your storage fees compared to Amazon FBA, your shipping costs could vary depending on the weight of your items and carrier. You can try to negotiate a good deal; however, sometimes, it may be unavoidable.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Customer_Service_is_your_responsibility\"><\/span><strong>Customer Service is your responsibility<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>With FBA, you have the advantage of using Amazon\u2019s trained customer service department, and they will be able to handle any inquiries, returns, and refunds on your behalf. Fulfillment by Merchant does not offer this kind of assistance, so it will be all up to you.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"No_Amazon_Prime\"><\/span><strong>No Amazon Prime\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>By far, the biggest con of Amazon is the missing business from Amazon Prime members. When buyers have a Prime account, the 2-day shipping criteria are a vital factor in a purchase to them. And, with <a href=\"https:\/\/www.statista.com\/statistics\/861060\/total-number-of-households-amazon-prime-subscription-usa\/\" target=\"_blank\" rel=\"noreferrer noopener\">1 in 3 Americans<\/a> having an Amazon Prime subscription, that is a lot of business loss. While you can apply for the alternative Seller Fulfilled Prime program, it is challenging to be eligible for it. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"It_requires_nearly_perfect_selling_ratings_and_other_criteria_listed_down_below\"><\/span>It requires nearly perfect selling ratings and other criteria, listed down below:&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Have a timely shipment rate of 99%<\/li>\n\n\n\n<li>Have a valid tracking rate of 99%<\/li>\n\n\n\n<li>Offer Premium Shipping to customers<\/li>\n\n\n\n<li>Have a proper collection rate of 0.5% or less<\/li>\n\n\n\n<li>Use Amazon\u2019s Buy Shipping for 98.5% of the orders&#8217; minimum<\/li>\n\n\n\n<li>Abide by Amazon\u2019s return policies<\/li>\n\n\n\n<li>Use of an Amazon-approved carrier for delivering orders<\/li>\n\n\n\n<li>Let Amazon handle all the customer inquiries<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_Should_You_Use_Fulfillment_By_Merchant\"><\/span>When Should You Use Fulfillment By Merchant?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Amazon FBA is generally perceived to be a better option because of the flexibility it offers. With FBA, sellers can save time by outsourcing storage, shipping, and fulfillment to Amazon. However, FBA also comes with its own drawbacks, thus making it difficult for sellers to fully settle for it. Are you unsure about whether or not selling through FBA is a good choice for you? You may want to consider using the FBM fulfillment method instead. <\/p>\n\n\n\n<p>Here are a few situations where it would be best to fulfill your own orders:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You are a new seller and cannot afford to bear the initial costs of selling through FBA.<\/li>\n\n\n\n<li>Your items are unique to your store. If you use FBA, your orders will carry Amazon&#8217;s brand logo thus making it difficult for buyers to remember your brand or store. Fulfilling orders by yourself will help you build the credibility of your product and online shop\u00a0and increase your chances of retaining customers.<\/li>\n\n\n\n<li>Your products are difficult to ship \u2013 when items require special handling, it would be better to ship them yourself instead of Amazon to avoid mishandling or breakage.<\/li>\n\n\n\n<li>You have a <a href=\"https:\/\/www.zonbase.com\/blog\/why-selling-on-smaller-amazon-markets-can-be-more-profitable\/\" target=\"_blank\" rel=\"noreferrer noopener\">small scale business<\/a>; you don\u2019t have as many items, and storage is easier and cheaper.<\/li>\n\n\n\n<li>Your items make a small margin so you wouldn\u2019t want to lose any more of the profit due to FBA fees<\/li>\n\n\n\n<li>You make handmade products and would like to ensure that your items are delivered to the buyer the way you want.<\/li>\n\n\n\n<li>Your products are exclusive or slow-moving and do not sell out quickly. In this case, FBM would be a better option because if your inventory stays too long at an Amazon fulfillment center, you risk incurring additional storage costs.<\/li>\n\n\n\n<li>You already have an affordable and reliable third-party fulfillment service.<\/li>\n<\/ul>\n\n\n\n<p>If you fit into most of the aforementioned descriptions, then selling on Amazon through FBM would be a great choice.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Get_Started_with_Amazon_FBM\"><\/span>How to Get Started with Amazon FBM<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Decided you wanted to do Fulfillment By Merchant on Amazon? Follow the steps outlined below to get started.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>First, you have to set up an Amazon seller account. <\/strong><\/li>\n<\/ul>\n\n\n\n<p>To do this, you will need a variety of information, including your business name, address, and contact information, as well as your credit card and Tax ID number.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/image-14.png\" alt=\"\" class=\"wp-image-23646\" width=\"768\" height=\"318\" srcset=\"https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/image-14.png 768w, https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/image-14-300x124.png 300w, https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/image-14-150x62.png 150w, https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/image-14-450x186.png 450w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Create and optimize your product listings<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The next thing to do after creating your seller account is to create your product listings. But you can&#8217;t stop at just creating listings, you also have to make sure they are well-optimized. To optimize your listings, ensure you include relevant keywords, use catchy product titles, make your descriptions readable by using bullet points, and also include attractive product images.<\/p>\n\n\n\n<p>ZonBase offers an AI-driven tool \u2014 AI Listify, that can help you create and optimize product listings from scratch without putting in much effort. All you have to do is provide a base keyword, then the tool runs through your competitor listings to identify their top-performing keywords. Afterward, it carefully curates a well-optimized listing for you using these high-ranking keywords. If you want to save time on listing creation and optimization, AI Listify is a must-have.<\/p>\n\n\n\n<p>You can try out the AI Listify tool alongside other ZonBase tools for FREE when you <a href=\"https:\/\/www.zonbase.com\/pre-register-email\" target=\"_blank\" rel=\"noreferrer noopener\">sign up for a 7-day free trial of the software<\/a>. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"326\" src=\"https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/ai-lISTIFY-1024x326.png\" alt=\"\" class=\"wp-image-23647\" srcset=\"https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/ai-lISTIFY-1024x326.png 1024w, https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/ai-lISTIFY-300x96.png 300w, https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/ai-lISTIFY-768x245.png 768w, https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/ai-lISTIFY-1536x489.png 1536w, https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/ai-lISTIFY-150x48.png 150w, https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/ai-lISTIFY-450x143.png 450w, https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/ai-lISTIFY-1200x382.png 1200w, https:\/\/www.zonbase.com\/blog\/wp-content\/uploads\/2023\/03\/ai-lISTIFY.png 1579w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Source and Fulfill Your Orders<\/strong><\/li>\n<\/ul>\n\n\n\n<p>After creating your listings, the next thing is to ensure you have your inventory ready to ship. Since you&#8217;ll be using FBM, you&#8217;ll have to sort out storage or warehousing by yourself. But this should not be an issue if you start with a little amount of inventory. <\/p>\n\n\n\n<p>You also need to put measures in place to ensure fast delivery. FBA typically offers fast delivery and you will have to match up to that especially because Amazon gives customers an estimated delivery date and you have to deliver within this time window.<\/p>\n\n\n\n<p>After, you have to integrate your Fulfillment and order management tools with Amazon to handle orders and deliver customer details. Once you update your account information to verify shipping and handling times, you are done and can get selling with Amazon FBM!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Much_Does_Amazon_FBM_Cost\"><\/span>How Much Does Amazon FBM Cost?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>FBM fees are significantly lower than FBA fees, this is because you will not be using any of Amazon&#8217;s services and will not have to pay for them. So, you won&#8217;t be incurring FBA inventory storage fees or fulfillment fees. But that does not mean that you won&#8217;t incur any fees at all. Here&#8217;s a simple breakdown of the fees you&#8217;ll have to pay.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Selling_plan_fees\"><\/span>Selling plan fees<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Every seller has to pay selling plan fees regardless of the fulfillment option or business model. Amazon offers two selling plans; Individual and Professional and the costs vary. <\/p>\n\n\n\n<p>If you opt for the individual plan, you will have to pay a per-item fee of $0.99 on every sale, but if you opt for the professional plan, you pay a fixed monthly selling fee of $39.99. The individual selling plan is best for sellers who do not intend to sell more than 40 items in a month while the professional plan is best suited for sellers who would like to sell more than 40 items in a month. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Referral_Fees\"><\/span>Referral Fees<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Amazon charges a referral fee for every sale you make. It is a commission-based fee that Amazon charges sellers for selling on the marketplace. It typically varies from 8% &#8211; 45% depending on your product category but is mostly between 8% &#8211; 15% for most product categories.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tips_for_Selling_with_Amazon_Fulfillment_by_Merchant\"><\/span>Tips for Selling with Amazon Fulfillment by Merchant<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ship_out_orders_on_time\"><\/span><strong>Ship out orders on time&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once you receive an order, you should ensure you ship the item based on the delivery date estimated by Amazon. If you are late, your customers may get angry and leave your business bad reviews.&nbsp;<\/p>\n\n\n\n<p>If you aren&#8217;t exactly sure how to ship your product, the first step is to choose a carrier. In the United States, you have multiple options, such as UPS, FedEx, USPS, and DHL.  You can compare the shipping rates using websites such as <a href=\"https:\/\/onlineshippingcalculator.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Online Shipping Calculator<\/a> and <a href=\"https:\/\/www.shipgooder.com\/#\/\" target=\"_blank\" rel=\"noreferrer noopener\">Ship Gooder<\/a>. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Always_provide_tracking_numbers\"><\/span><strong>Always provide tracking numbers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Amazon requires all orders to have a tracking number, so make sure you don\u2019t forget! If you purchase shipping through Amazon, the tracking number will automatically be sent to the customer.&nbsp;Otherwise, you will have to let them know yourself. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Have_a_good_return_policy\"><\/span><strong>Have a good return policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>According to Amazon\u2019s policy, you must accept all returns. So, you should have clear return instructions included in your packaging as well as your item listing. Ensure you have a valid return address so your returns can be sent there.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Choose_where_to_store_your_inventory\"><\/span><strong>Choose where to store your inventory<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When choosing a storage or warehouse location, you should try to strategically have it in a place where you can avoid redundant shipping costs. You can rent a room or even use your house for smaller businesses.\u00a0<\/p>\n\n\n<!-- Error, Advert is not available at this time due to schedule\/geolocation restrictions! -->\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion_Our_Thoughts\"><\/span>Conclusion: Our Thoughts?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Despite the number of benefits selling on Fulfillment by merchant has, we at <a href=\"https:\/\/www.zonbase.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">ZonBase<\/a> still believe Amazon FBA is the way to go. <\/p>\n\n\n\n<p>Even though the fees from Amazon eat into your profits, Amazon FBA&#8217;s efficient, hands-off shipping saves sellers a lot of time they could be spending on improving other aspects of their business. Whether it&#8217;s marketing their business, researching their competitors, or even adding more products to their catalog, it feels like a waste using multiple hours a week packing your products when Amazon could just do it for you. <\/p>\n\n\n\n<p>Along with that, Amazon FBA makes selling on Amazon much easier and more feasible for beginners looking to increase their income. For those who are experienced, the entire selling process could even be autotomized, making it a great, passive income opportunity that those using it can&#8217;t even dream of. <\/p>\n\n\n\n<p>However, as we said before, there are many specific scenarios where Fulfillment by Merchant may work better for your products. However, most Amazon sellers who wish to scale their business and maximize their profits, would need a lot of inventory space and time which makes Amazon FBA the better option for them. <\/p>\n\n\n\n<p>Want to learn more about Amazon FBA? Read all about it here. <\/p>\n\n\n\n<p>Selling on Amazon is a lucrative and flexible source of income. Whether you choose to do it as a side hustle or a full-time job, check out <a href=\"https:\/\/www.zonbase.com\/?utm_source=google&amp;utm_medium=cpc&amp;utm_campaign=&amp;gc_id=16253033465&amp;gclid=Cj0KCQjw_4-SBhCgARIsAAlegrWRpoSlAAdrs9c88PCJ_I8uAkEr4jx71giY9pIM4vRj1cLXfI9lmqAaArJ0EALw_wcB\" target=\"_blank\" rel=\"noreferrer noopener\">ZonBase<\/a> to make your Amazon business a piece of cake.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the last couple of years, you can say there has been an Amazon boom. The online retailer\u2014 which accounts for 45% of the U.S. e-commerce market\u2014 is home to over 6 million sellers according to Marketplace Pulse. This number is only growing, with nearly 2,000 new sellers joining each day. Despite the massive amount<\/p>\n","protected":false},"author":1,"featured_media":11843,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[128,184],"tags":[48,296,32,37,35,52,50],"class_list":{"0":"post-11602","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-amazon-fba","8":"category-zonbase","9":"tag-amazon-fba","10":"tag-amazon-guides","11":"tag-amazon-product-ideas","12":"tag-amazon-product-research","13":"tag-amazon-seller-central","14":"tag-fulfillment-by-amazon","15":"tag-how-to-sell-on-amazon-fba"},"_links":{"self":[{"href":"https:\/\/www.zonbase.com\/blog\/wp-json\/wp\/v2\/posts\/11602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zonbase.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zonbase.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zonbase.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zonbase.com\/blog\/wp-json\/wp\/v2\/comments?post=11602"}],"version-history":[{"count":27,"href":"https:\/\/www.zonbase.com\/blog\/wp-json\/wp\/v2\/posts\/11602\/revisions"}],"predecessor-version":[{"id":23658,"href":"https:\/\/www.zonbase.com\/blog\/wp-json\/wp\/v2\/posts\/11602\/revisions\/23658"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zonbase.com\/blog\/wp-json\/wp\/v2\/media\/11843"}],"wp:attachment":[{"href":"https:\/\/www.zonbase.com\/blog\/wp-json\/wp\/v2\/media?parent=11602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zonbase.com\/blog\/wp-json\/wp\/v2\/categories?post=11602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zonbase.com\/blog\/wp-json\/wp\/v2\/tags?post=11602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}