Fulfillment By Amazon is the next evolution of AmazonShip. For commercial purposes, the vendor ships the items to an Amazon FBA warehouse. Amazon will assist in the picking, packing, and shipping of customer orders. Although this line of work may seem ideal, a solid stocking capacity on the part of the vendor is essential. Initial investment is relatively significant because of the required amount of preparation time in the Amazon warehouse.
It is not advised that first-time, independent vendors go this route. There will be no issues if a team of sellers operating more like factories reach out to the FBA business, and Amazon will even provide some traffic help.
Thus, more Xiaobai sellers will choose for FBM services if they wish to follow in Amazon’s footsteps in cross-border e-commerce. Fulfillment by Merchant or FBM, is its own fulfillment service. In Amazon, vendors can list their wares for sale. In response to an order, the seller will prepare the items for shipment, and then send them along the international logistics chain to the final destination.
Advantages of Amazon FBM
With FBM, vendors can increase their stock-keeping unit (SKU) count without increasing their warehousing footprint at Amazon. When merchants are at a loss for what to stock, they often count on a steady rise in product distribution. This service has the potential to be successful because it requires little to no initial capital investment, but it also has some drawbacks.
Disadvantages of Fulfillment by Merchant
FBM service has the drawback of being quite onerous and time-consuming for vendors. In the first place, the seller needs to act as a customer service to handle a series of client problems when the number of customer orders is huge but not obvious.
Shipping from China means a longer total delivery time, more complicated logistics, and less direct influence over product quality. Sellers may grow weary of fielding questions and dealing with issues relating to subsequent returns and exchanges.
There is growing consensus that the Amazon platform’s stringent controls make widespread product distribution impossible. Even if they can’t pass, there are still people on foot. Is that the metal? It’s possible for this reason, but it really only applies to your own life. They have to resort to the mass distribution when they lack the resources, product range, and operations staff to pursue any other option.
Which begs the original question: will FBM be successful in 2022? It’s possible, but merchants interested in FBM should give serious thought to whether or not their individual situations make them good candidates for the service.