There are two ways to sell on Amazon. The first is FBA (Fulfillment By Amazon) and the other is FBM (Fulfillment By Merchant). Two different models have advantages and disadvantages. In this article,
What are FBM services?
What are the advantages of FBM?
What are the FBM rules?
You will learn about FBM from topics such as:
What are FBM Services?
Selling abroad has certain obligations. Fulfilling these obligations directly through Amazon (FBA) or the seller's own choice and self-responsibility (FBM) has given rise to two different methods. So, what are the overseas sales responsibilities?
Packaging: Amazon stipulates certain packaging standards to ensure that the product reaches the customer in a healthy manner. In Amazon FBM service, you or your contracted shipping company do the packaging in Amazon standards. You can put your own brand label on the packaging.
Shipping: The product is delivered to your contracted cargo company, and it is expected that your product will be delivered to the buyer on time and without any problems. Since shipping is expected directly from you in Amazon FBM service, if your product will be stored until the time of shipment, this service will be covered by your contracted shipping company. In addition, live tracking of the location of the cargo is required. In the FBM model, it is left to your decision to work with a cargo company that will create sufficient opportunities for all of your needs.
Return: In case the customer wants to return the product, it is again left to the seller to complete the return procedures quickly and to maintain the process professionally without making the buyer or the seller a victim. In Amazon FBM, the competence of the shipping company you will agree with for return services is of vital importance.
Customer Services: Customer satisfaction services. It is a set of services that will graciously provide quick and adequate answers to the buyer's questions, and enable the buyer to find an addressee related to the product. Again, in the Amazon FBM model, Customer Service is expected from the seller. The company that provides the cargo or e-commerce service you will agree with must provide customer service competence.
Amazon demands that all the above services be performed professionally by the seller.
What are the advantages of FBM?
You may prefer to work directly with Amazon in your overseas sales transactions. But without working with Amazon, it is also possible to increase your profitability with the FBM model. FBM model advantages can be listed as follows:
You are in control of the supply process. According to the quality of the cargo company you have agreed with, you can handle the logistics services relatively more conveniently than Amazon, and you can buy quality service at an affordable price.
It is sometimes unpredictable how long your product will stay in the warehouse. Therefore, when you receive FBA service, your storage costs may be higher than you expect. Thanks to the FBM service, you have the chance to get more affordable storage costs and a more efficient storage service compared to FBA.
You can use your own logo and brand on cargo packages. Like the Amazon FBA service, the FBM service requires you to meet certain packaging requirements. But unlike FBA, it is possible to use brand and logo on the package in FBM.
While labeling and cargo plan creation are subject to strict rules in FBA, these rules are not available for FBM, labeling and cargo plan belong to you and your contracted cargo company.
Amazon sometimes makes changes in the replenishment process. The FBM model protects you from Amazon fulfillment process changes, while the FBA model is directly affected.
FBM model is more suitable for dropshipping.
What are the FBM Rules?
Amazon requires you to fulfill the shipping service with strict rules. In the FBM model, the success of the cargo process is tied to certain parameters.
Estimated delivery date is accepted as one of the parameters. Accordingly, the rate of delays that may occur on the date of delivery should not exceed 4%.
The status of the seller's cancellation of the order before shipping is also one of the parameters. Accordingly, the rate of orders canceled by the seller before the product is sent to the customer should not exceed 2.5%.
Amazon cares a lot about finding a valid tracking rate. Accordingly, the valid tracking number rate at which the customer can track the shipment must be above 95%.
The timely delivery rate of the shipment is one of the most important parameters for Amazon. Accordingly, the delivery rate of the product to the buyer on the estimated delivery date must be above 97%.
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