What is FBM (Fulfillment by Merchant) & FBM (Fulfillment by Merchant) Review

FBM stands for fulfillment by merchant, which means sellers only use Amazon as a sales platform and need to rely on third-party express services such as international postal services, international express services, and international dedicated lines to deliver goods from China to buyers.

advantage

1. Ensure product packaging and understand product status.

2. You can use customized packaging to differentiate yourself from your competitors, and you can include a handwritten thank-you note to the customer in the package.

3. No inventory pressure and storage fees.

shortcoming

1. Reduce the chance of winning the Buy Box.

2. A large amount of manpower is required to handle customer service and return issues.

3. The delivery time is long and the return rate is high.

How to process product returns

1. What should I do if I have clicked to confirm shipment but the product has not been shipped yet and the buyer has filed a return request?

First, you can contact the buyer and ask him the specific reason why he wants to return the goods. If the buyer insists on returning the goods, you can directly refund him on the order management page.

2. If I have already clicked to confirm shipment and the product has been shipped, what should I do if the buyer files a return request?

First contact the buyer and ask the specific reason for the return. If the buyer insists on returning the goods, let the buyer refuse to accept it, and then refund the buyer on the order management page. Generally, the refund will be made after the goods are shipped back to the country, but in order to avoid bad reviews and AZ, it is recommended to refund as soon as possible.

If there is an overseas warehouse, you can also allow customers to return the products after receiving them, depending on the results of the negotiation with the customers.

suggestion

Amazon sellers who can make the most of MFN are generally those who already have warehousing and transportation systems. If the seller has a warehouse (or several), employees, and a trusted logistics network, you can consider using MFN to obtain higher profit margins.

The Difference Between Amazon FBA and FBM

1. Different delivery methods

FBA: fulfillment by amazon means that the goods are delivered by Amazon warehouse. Sellers need to prepare goods in Amazon warehouse in advance. After the buyer places an order, Amazon is responsible for delivering the goods that the seller has stored in Amazon warehouse to the buyer. FBM: fulfillment by merchant means that the seller ships the goods by himself. Amazon only serves as a sales platform. Sellers need to use third-party express services such as international postal, international express, and international dedicated line to deliver to buyers.

2. Different delivery times

Because the seller has already stored the goods in the Amazon warehouse before the buyer places an order, Amazon can directly deliver the goods when the buyer places an order, which greatly shortens the delivery time and greatly improves the ranking of the business name in the same category, so the sales will be more secure. Many FBMs are shipped directly from the warehouse of the seller on the Amazon forum. There are many uncontrollable factors in the timeliness, but because it is shipped directly from the seller's warehouse, the seller can control the selection, packaging, quantity and other aspects of the goods, which greatly reduces the error rate of goods.

3. Advantages and disadvantages of FBA

FBA has many advantages. One of them is that you don't have to worry about shipping costs. No matter how big or small your store is, FBA sellers can provide a variety of shipping methods. In fact, you can choose the fastest delivery method. Especially when you ask Amazon Prime customers to cooperate with you to take advantage of the free 2-day delivery method. A relative advantage is that Amazon's customers know what they want and are willing to pay for it. According to statistics from Amazon forums, half of customers are unwilling to buy from sellers that are not FBA. Not only the shipping service, but also good customer service is the reason why these customers sign up for Prime. Using FBA is a way to keep smaller sellers away from fierce competition, your products will be ranked higher, and your products will have the opportunity to be purchased by customers.

The main disadvantage of FBA is the cost. Amazon charges sellers a fee for each cubic foot of warehouse space they use each month. So FBA is very costly for low-volume products. One way to address the cost is to use Amazon's Inventory Health Report. This shows the status of inventory on the shelf.

4. Advantages and Disadvantages of FBM

One advantage of FBM is that sellers can ensure that their packaging is completely safe. However, Amazon sellers must deal with the issues of picking, packing, shipping, and customer service. These are time-consuming and difficult tasks. Many people use both FBA and FBM to decide which shipping method sells better. Sometimes both have the same advantages, for example, if a specific packaging method or the buyer is not so demanding about shipping speed, FBM is a good choice.

1. Express delivery: Four major express delivery companies, DHL, UPS, FEDEX, TNT (it is recommended that sellers with a small number of tickets, who are just starting out and have strict requirements on timeliness, and single tickets within 200KG can choose express delivery channels)

2. Air freight + delivery first leg: US UPS double customs clearance and tax included. Service introduction: US UPS double customs clearance and tax included, the first leg is air freight from Hong Kong/mainland China to Los Angeles (LAX), express customs clearance, and after customs clearance, it will be delivered to the warehouse by UPS.

Advantages of Amazon's double tax clearance service in the United States:

·Low price, truthful declaration, double clearance and tax included.

·Air-plus-dedicated line mode, fast efficiency.

· Last-mile UPS delivery, no appointment required, stable delivery time.