When to FBA or FBM
Amazon FBA (Fulfillment by Amazon):
Convenience and Hands-off Approach: Amazon FBA is ideal if you want a hassle-free, hands-off fulfillment experience. Amazon takes care of storage, packaging, shipping, and customer service.
Prime Eligibility: FBA products are often Prime-eligible, which can boost sales due to the trust and fast shipping associated with Amazon Prime.
Multi-Channel Fulfillment: FBA allows you to fulfill orders from other sales channels besides Amazon, streamlining operations if you sell on multiple platforms.
Storage and Shipping Expertise: Amazon is experienced in efficient storage and shipping, reducing the risk of shipping errors or damage to your items.
Seasonal Products: If you sell seasonal products, FBA can handle the increased order volume during peak seasons.
Amazon FBM (Fulfillment by Merchant):
High Margins and Unique Products: If your products have high margins or are unique and require special handling or customization, FBM offers more control.
Small Inventory or Slow-Moving Products: If you have a limited inventory or products that sell slowly, FBM can help you avoid storage fees associated with FBA.
Fast Shipping Capabilities: If you can consistently provide fast shipping to customers on your own, FBM allows you to offer competitive shipping options.
Product Restrictions: Some products may not be eligible for FBA due to restrictions, making FBM the only option.
Brand Control: With FBM, you have more control over your brand image, packaging, and customer experience.
Some sellers even use a combination of both methods for different products within their inventory. I like to look at it: if you have more capital than time, FBA might be the better program for you. If you have more time than capital, FBM may benefit you more.
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