Amazon Sold over $700+ billion in 2023 according to marketplace pulse. that’s massive when it comes to competition like Walmart Target & Ebay. In 2023, Walmart U.S. had net sales of 420.6 billion U.S. dollars.
So, Amazon is massively dominating its e-commerce market. Are you looking to sell on Amazon?
you are in the right place. We will know How we can start working on Amazon as an individual or a company ( we can choose any option ) based on our circumstances. First, we need to know the difference between different models of working on Amazon.
Today we are going to Know what is Amazon FBA & FBM Model.
FBA stands for Fulfilled by Amazon
This means Amazon Will fulfill the orders, they will pick, Pack & ship your Inventory/ Orders to the Customer, and you don’t have to do the logistics to fulfill an order. You just need to send all the inventory you are going to sell on Amazon to a fulfillment center near you & amazon will do these things
- Distribute your inventory to different regions.
- Pick Pack & prepare your inventory.
- Fulfill orders.
- Manage Payments
- Customer service.
- Manage Returns etc.
What is the FBM Model?
FBM stands for Fulfilled by the merchant.
Merchant means you as the seller will fulfill all the orders, Manage returns, Pack the item, Generate / Arrange Shipping & do customer service, answer customer queries, manage & arrange Returns, etc. Amazon will only provide you with customers.
- You will be paying less Fee as compared to FBA.
- You will be doing 90% of the work that Amazon did for you.
- although you will earn more profit,
- Difficult to manage if you receive bulk orders & have to manage resources for order fulfillment.
- Amazon discourages dropshipper & FBM sellers as they make less profit.
- Amazon FBM model can be started with less investment & quantity of products.
- Inventory goes live quickly as compared to the FBA Model.
