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Fulfilled by Merchant: How to Leverage Amazon's FBM Services

Fulfilled by Merchant: How to Leverage Amazon's FBM Services

June 14, 2023
Posted By
Olexiy Shapowal
Title asset to the "Summer Shipping" blog post from Atomix Logistics. A small green 3D truck with a small sun floating above it portrays the hot summer sun during order transport. KW: Ecommerce, 3PL, order fulfillment, fulfillment center, summer order fulfillment, new orders, new customer, temperature, protection, packaging, eco-friendly, sustainability

As ecommerce businesses continue to grow around the world, it's important to understand the many fulfillment options available - and how they can impact your bottom line. Amazon's FBM service is a great option for brand owners who want more control over their inventory and order fulfillment, while still leveraging Amazon's massive customer base. 

In this post, we'll dive into the benefits of FBM, as well as how to manage your FBM account, optimize your product listings, and build your brand on Amazon. Whether you're just starting out in ecommerce or looking to scale your existing business, this post will provide valuable insights into how FBM can help you achieve your goals.

Understanding Fulfilled by Merchant (FBM) and its Benefits

Fulfillment by Merchant (FBM) is a service offered by Amazon that allows sellers to fulfill their own orders without relying on Amazon's warehouse and shipping services. FBM gives sellers control over their inventory because they are responsible for storing and shipping their products, giving full visibility over the order fulfillment process. This can result in cost savings for sellers who do not want to pay the fees associated with Amazon's Fulfilled by Amazon (FBA) service, or sellers who prefer a partnership with a 3PL. Additionally, FBM can be a good option for sellers who sell oversized or unique products that may not be eligible for FBA.

Comparing FBM to other fulfillment methods, it stands out as a more flexible and cost-effective option. While FBA provides many benefits, including Amazon's Prime eligibility, it can be more expensive and may not be the best option for every seller. By using FBM, sellers have more control over their inventory and can save on storage and shipping costs. Overall, understanding the benefits of FBM is crucial for ecommerce brand owners who want to optimize their logistics operations and grow their business through Amazon’s marketplace.

Setting Up for Fulfilled by Merchant (FBM) and Managing Orders

If you've decided to use Fulfilled by Merchant (FBM) services through Amazon, the first step is to set up your account. Follow these easy steps to get started:

  1. Register as a seller on Amazon (if you haven't already).

  1. Sign up for a Professional selling plan, which allows you to sell an unlimited number of products on Amazon (the individual plan limits sellers to less than 40 units/month, amongst other restrictions).

  1. Choose FBM as your fulfillment method when creating product listings.

  1. Determine your shipping rates and policies in your Amazon account.

  1. Ship orders directly to customers using your preferred carrier/3PL and shipping method.

Managing orders in FBM requires more hands-on work than Fulfilled by Amazon (FBA), but the tradeoff also gives you more control over the process. You'll need to monitor your inventory levels and fulfill orders promptly to maintain high customer satisfaction ratings. Partners of Atomix Logistics receive these insights automatically and in real-time, allowing sellers to make more informed decisions for the future of their brand(s). If you prefer shipping out products yourself, consider using Amazon's Seller Central platform to manage orders and track performance metrics. With proper planning and attention to detail, FBM can be a very effective way to manage your ecommerce business on Amazon.

Customer Service and Returns in Fulfilled by Merchant (FBM)

Providing great customer service is essential for any ecommerce owner, but it's especially important when using Fulfilled by Merchant (FBM) services through Amazon. With FBM, you're responsible for handling customer inquiries and managing returns and refunds. Here are some tips for managing customer service and returns when using Amazon’s FBM services:

Respond to customer inquiries promptly: Aim to respond to customer inquiries within 24 hours to maintain high customer satisfaction ratings, and build a trustworthy brand image.

Provide clear return policies: Make sure your return policies are clear and easy to understand, so customers know what to expect if they need to return a product. If your ecommerce business structure allows for it; offering free returns is one of the most effective ways to ensure customers come back to shop with you again, even after a product return.

Process returns and refunds quickly: When a customer requests a return or refund, process it as quickly as possible to avoid negative feedback or complaints. There are many automated tools to help with this process as well, but following up with a customer to keep them updated should always be done “by hand.”

Use Amazon's tools and resources: Amazon provides sellers with many tools and resources for managing customer service and returns, including the “A-to-Z Guarantee” program and the Seller Central platform.

By taking a proactive approach to customer service and returns, you can build trust with your customers and maintain a positive reputation on Amazon.

Optimizing Product Listings and Pricing for Fulfilled by Merchant (FBM)

Making sure your products have a professional and inviting appearance is critical for success when using Fulfilled by Merchant (FBM) services through Amazon. Here are some tips for optimizing your listings and pricing:

  1. Use high-quality images: High-quality images that show your product from multiple angles will attract more customers, as it provides a vague sense of familiarity with the product before it is even purchased.

  1. Write compelling product descriptions: Make sure to create clear, concise, and compelling descriptions that highlight the key features of your products.

  1. Optimize for search: Use relevant keywords in your product titles and descriptions to improve your search rankings on Amazon.

  1. Monitor your competition: Keep an eye on your competitors' prices and adjust your pricing strategy accordingly.

  1. Offer promotions and discounts: Consider offering promotions or discounts to incentivize customers to buy from you.

By optimizing your product listings and pricing, you can increase your visibility on Amazon, attract more customers, and sell more products. With FBM, you have control over your pricing strategy, so take advantage of this flexibility to stay competitive in the marketplace.

Building Brand Awareness and Reputation with Fulfilled by Merchant (FBM)

Getting set up on Amazon and creating flawless product listings is only one part of the equation; it's important to take advantage of Amazon’s audience to build your brand’s presence in the marketplace as well! FBM allows customization of packaging, quick responses to customer inquiries, and control over your pricing strategies on Amazon. By creating a unique packaging or unboxing experience, brand owners can reinforce their brand values and increase customer loyalty. Additionally, the ability to set prices avoids participating in price wars on Amazon's marketplace. With these benefits, FBM provides a powerful platform for building brand reputation and reaching Amazon's vast customer base.

Conclusion

Whether you are completely new to ecommerce or have plenty of experience, understanding how to use FBM is invaluable knowledge that helps ecommerce brand owners worldwide, whether they decide to use FBM or not. With so many changes happening weekly in the ecommerce marketplace, making sure to set your business up for success ahead of time is vital. 

In addition to providing 3PL services to ecommerce brands worldwide, Atomix Logistics can also provide help with preparing a brand for selling through FBM. If you’d like to learn more about how we can grow your brand through Amazon’s marketplace, don't hesitate to contact our team with any questions!

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