Now is the ideal time for budding entrepreneurs, with lockdowns and self-isolation giving everyone more time at home, to start that Amazon business they have always wanted. From March to April, Amazon FBA restricted inbound deliveries of non-essential items. You may need FBA to get started depending on the product you are selling. Here are the steps.
What is Fulfillment By Amazon (Amazon FBA).
FBA (Fulfillment By Amazon) is an Amazon seller service that allows sellers to send their inventory to FBA warehouses in the country. Amazon then fulfills incoming orders from your shop.
FBA services include storing, picking and packing, shipping, tracking, handling returns, and shipping. This is a great option for anyone who wants to start selling on Amazon. This means you don’t need to worry about finding storage space, logistics knowledge, or breaking the bank in order to quickly get orders out.
Although FBA is slowly recovering, it is not what it was. You may have to restrict your Amazon business’s ability to fully utilize FBA. This could limit your ability generate new sales through fast shipping.
To sell on Amazon, you can use Fulfillment by Merchant (FBM).
Fulfillment by Merchant (FBM), is when you are responsible for the storage, picking and packing of your Amazon orders. This is different from outsourcing it to Amazon FBA.
This way of fulfilling your dreams has many benefits both in the short-term and long-term.
1) Removing current FBA restrictions
FBM instantly overcomes FBA restrictions. This means you can ship new products right away, replenish stock and offer fast shipping rates to customers.
2) More control
FBA is a great option for Amazon sellers who are just starting out, but it requires you to give up a lot of control and trust Amazon. FBM lets you test different fulfillment methods before deciding on the best one.
3) Some products have reduced prices
FBM makes it easy to find the fulfillment solution that suits your products and budgets, without worrying about Amazon’s high prices for bulky, heavy, slow-moving or multi-channel products.
4) Flexible growth
FBM is ideal for Amazon sellers new to the business, particularly if they have the space and time to fulfill orders. Your fulfillment methods will grow as your business expands. You can also use FBA later on or outsource FBM.
5) Increasing sales
FBM sellers currently have a greater chance of winning the buy box and can still qualify for Prime tags with Seller Fulfilled Prime, providing more opportunities for increasing sales.
What is FBM?
FBM can be used to start selling on Amazon.
1. FBM in-house
FBM in-house involves managing the fulfillment process using your own facilities, software and chosen shipping carrier.
FBM in-house has the advantages of keeping costs low. You can use your family’s garage and other budget shipping carriers to ship items. It also teaches you basics of Amazon fulfillment.
In-house FBM may not be for everyone. Inexperience, lack of space and cash flow and lack of experience can all lead to poor shipping standards and slow delivery times. This could be detrimental to your ability and time to grow your business.
2. Outsourced FBM
Outsourced FBM involves using an outsourced fulfillment partner to handle your entire fulfillment process for you, much like Amazon FBA.
FBM outsourcing offers the benefit of having access to existing staff, tools, personnel, locations, and expertise that allows you to deliver items faster, more efficiently, and more satisfactorily than you could in-house.
New sellers should be cautious when using FBM outsourced, especially if their product lines are limited and they don’t have the cash to do so.
However, with the right fulfillment partner, no one is too small to get started with outsourced fulfillment. You don’t need to be broke to use outsourced fulfillment.
How to set up FBM
It is a good idea to have your FBM setup before you sell on Amazon. This is something you don’t want to worry about after you receive your first order.
FBM setup in-house
FBM setup in-house
- You need storage space to store your inventory.
- Packaging space needed for orders
- A method or tool for syncing inventory levels on Amazon;
- Reliable shipping company that can deliver within 2 days.
- This is a fast and efficient way to get orders from receipt to your shipping carrier in record time.
When choosing your fulfillment partner, consider the following:
- Shipping speed – How quickly can they fulfill orders
- Which parts of the country are covered by warehouse locations?
- Ability to adapt to changes in demand – Can they do so?
- Pricing – Is their pricing model clear, affordable and transparent?
- Coronavirus – are their warehouses operational during COVID-19?
FBM: How to sell on Amazon
FBM is very similar to FBA.
1. 1. Choose a selling strategy
There are two Amazon selling programs:
IndividualEvery time you sell an item, earn $0.99
For professionals – $39.99 per month
Both plans are also subject to a percentage referral fee for each sale.
2. 2. Create an Amazon seller account
Go to sell.amazon.com and click Sign up.
The system will prompt you to provide complete information including:
- Your business name
- If applicable, your business address, telephone number and website
- Credit card with a charge
- Government ID
- Tax information
- A bank account for sale proceeds
3. 3.Add your products
After conducting your Amazon product research and sourcing the best products to sell on the platform, you can add them to your Amazon store.
COVID-19 has changed purchasing behavior, leading to different product trends. This could mean that you need to rethink your product lines.
To create a product listing using Seller Central’s Add Product tool, you will need to include a title, description and keywords. A unique product ID allows you and your FBM fulfillment provider track inventory and fulfill orders.
Notice: Make sure to mark your products FBM on Amazon.
4. Attract customers
Once your products are live on Amazon, you can start attracting customers to your listings using the flywheel effect.
You can use tactics like:
- Quick DeliveryDelivery in 2 days or lessYou can qualify for Seller Fulfilled Prime.
- Marketplace AdsSponsored products and brand ads increase impressions
- Competitive Pricing– Use anAmazon repricer to maintain competitive prices and to put you in a position to win the buy box
5. Fulfill all orders
Depending on which FBM method you choose, Amazon orders will need to be fulfilled as follows:
You can download the relevant order information, then pick, pack and ship your order using your internal fulfillment process and the chosen shipping carrier. Tracking details should be added to the order.
Work with Amazon FBM’s outsourced fulfillment experts to add inventory and track orders. Orders will be sent directly to your customers by outsourcing fulfillment. You only need to handle any returns and exchanges.
Although the current FBA restrictions may not be ideal for Amazon sellers new to the site, the extra time, sales and opportunities created by the pandemic mean FBM can help you get started selling on Amazon in no more than a few minutes and with very little hassle if you wish.
To keep yourself updated with latest ecommerce and Amazon news, subscribe to our newsletter at www.cruxfinder.com