Do you seek a profitable way to fulfill customers’ orders on Amazon? Are you keen on managing them yourself rather than leaving them to Amazon FBA? The thing is, Amazon FBM is a serious option to consider when fulfilling orders on Amazon as that type of fulfillment can be cost-effective and rewarding operationally for your business.
Keep in mind you’re accountable for customer service—including returns, refunds and other customer complaints. When consumers request returns, Amazon sends them pre-made return labels with your address.
Amazon FBM includes running a warehouse or working with a 3PL (Third Party Logistics) company that can handle, package and ship your products to customers. A 3PL service is any non-Amazon fulfillment agent who stores, handles and ships your inventory so you can focus on other parts of the business.
This article explains how Amazon FBM works and how to merchant fulfill on Amazon, two critical steps to understand if you’re considering fulfilling customers’ purchases yourself.
To successfully Merchant fulfill orders on Amazon:
- What Amazon FBM Is All About
- Create an Amazon Seller Account
- List Your Products on Amazon
- Choose Where to Store Your Inventory
- Pros and Cons of Self-Fulfillment vs 3PL
- Manage Your Orders
- Consider the Benefits of Selling on Amazon FBM
Ready to learn more? Let’s do it!
1. What Amazon FBM Is All About
Fulfilled by Merchant (FBM) means you fulfill your orders on Amazon, including running a warehouse, and managing inventory—or collaborate with a 3PL service that can handle, pack and ship items.
You have absolute control over your entire fulfillment process—you won’t have to rely on Amazon nor have anything to do with Amazon’s changing restock limits.
Check whether you can start a fulfillment warehouse or outsource it to a 3PL service. Figure out how much time to prepare an item; this can help you determine speed.
For example, if you need to pack products into a box, measure the size of items, etc.,
2. Create an Amazon Seller Account
To merchant fulfill on Amazon, understand the different seller accounts so you can figure out the most suitable account for you.
Go to Amazon’s website and click on the Sell on Amazon button to create an Amazon seller account.
Key in the relevant information, including your full name, business location, phone number, email address and bank account details. Enter your tax information and upload your government-issued ID for verification and validation. Verify your account with the link in the email you receive from Amazon.
Set up an Amazon Pay account—it’s free and fast—so you can accept payments from customers who use credit cards.
3. List Your Products on Amazon
To properly merchant fulfill on Amazon, list your products in the catalog they belong to. Upload quality images and write captivating product descriptions to improve your chances of conversion. Provide correct details for your product listings to help shoppers make well-informed purchases.
Go to the “Inventory” section to list your product, click Add a Product to create a new listing, and select the right product category when listing products.
Match the listing to an existing product page in the Amazon catalog—or create a new page for a product if it does not yet exist in the Amazon catalog.
Create a listing for each product, including photos, title, description, pricing information and shipping details. Set a shipping schedule and make sure your products are always in stock. Craft an appealing title—write a detailed product description, add convincing and favorable shipping time and list the items properly so you can attract buyers.
Manage your inventory well to help your business become successful and get returns on your investment. Make sure you have enough inventory so you can meet demand.
4. Choose Where to Store Your Inventory
To successfully merchant fulfill orders on Amazon, decide where to store your inventory before selling. Store them yourself or use a fulfillment center. Consider what makes the most sense for your business.
Use a fulfillment center if you want to focus on other activities and don’t want to handle orders and shipping—this method is fast and less stressful.
See, if you want to profit from the Amazon marketplace, you must consider the location of your warehouse. Choose your warehouse intelligibly and strategically to avoid redundant shipping costs.
Store your inventory in a safe place to prevent unprecedented circumstances.
5. Self-Fulfillment
- Pros
- You can’t incur any unexpected costs or the pesky FBA charges.
- You can pack your products in a way you want for your customers.
- You enjoy control over your branding, inventory, and orders.
3 PL
- Cons
- The stress of managing customer service and fulfillment operations.
- You need an ideal warehouse capacity for product storage.
- Self-fulfillment can be challenging to ensure timely international shipment.
- Pros
- Can save you time and money through bulk shipping.
- Offers local and international distribution as well as fast delivery.
- Is suitable for fast-growing businesses with large order volumes.
- Cons
- You have less control over your inventory and the consumer experience.
- Can be costly, especially if your orders are few.
- Providers do not deliver perishable, hazardous or flammable items.
6. Manage Your Orders
To merchant fulfill on Amazon, organize the gathering, packing and arranging for the shipping of your customers’ purchases.
With Amazon FBM, you don’t need to compete for space on Amazon’s fulfillment center shelves.
Focus on selling more products. Let the third party handle all the customer service and back-end tasks.
Manage customers’ orders once you receive them and deliver them to the shipment addresses. Amazon provides an estimated delivery time to customers on the product detail page so customers know when to expect the products they ordered, including handling and transit times.
Set your shipping, handling and transit time to meet your customers’ expectations; provide a tracking number to your customers.
Update your Amazon seller account with the latest guidelines for all Merchant Fulfillment orders. When you authorize a product return request from a customer, Amazon sends the consumer a return label as well as your default return address, which must be authentic.
7. Consider the Benefits of Selling on Amazon FBM
To merchant fulfill on Amazon, evaluate the fees Amazon charges its sellers who use FBM—it is not free to fulfill orders on Amazon.
- You won’t pay unexpected fees.
- You choose the plan that suits your size of business.
- You can potentially have a higher profit margin.
- You can monitor inventory yourself.
- You have the privilege of promoting your brand.
You don’t need to pay for monthly storage, order fulfillment, handling fees, high-volume listing, etc., when you use Amazon FBM.
You can pay a monthly subscription fee, a Per Item Selling cost or a Referral fee. The monthly subscription charge for the Pro plan is $39.99, while there are no fees for the Individual Selling Plan. The Pro Plan includes no fee for per-item selling, but the Individual Selling Plan charges $0.99 for each product sold. The referral fee is based on a percentage.
You enjoy wider profit margins per item you sell—but make sure you calculate all costs correctly and negotiate the best prices for stock and shipping.
Monitor the status of inventory orders as you now have total control over the operations and products.
Amazon FBM can lead to fewer mishaps, as you can quickly identify and correct any problems and increase your stock levels.
As an FBM user, concentrate on stocking, storing and shipping since you no longer have to deal with Amazon hassles. Prevent the unexpected charges that come with selling on Amazon FBA, making it a more stable and predictable option for selling online.
You are in charge of customer service with FBM—this may sound like more work for you, but FBM has more benefits.
Distinguish your brand with excellent customer service so you can stand out from other sellers on Amazon. That way, you have a competitive advantage.
Conclusion
To Merchant Fulfill order on Amazon, find out what Amazon Fulfilled by Merchant is, so you know how to handle the entire process.
Visit Amazon homepage to create a seller account and list your products in the Amazon store. Check out the pros and cons of self-fulfillment vs. 3PL to know the one that fits your budget.
Choose a convenient location you want to store your inventory, manage customer orders, and consider the benefits of selling your product using Amazon FBM.
