Do you want to know whether you are one of the types of sellers who benefit the most from Amazon FBM? Then, read on! Choosing the right fulfillment method between FBA and FBM is important to be successful on Amazon. While Amazon FBA (Fulfillment by Amazon) is popular for its convenience, it’s not the best fit for everyone.
Amazon FBM (Fulfillment by Merchant) gives sellers more control over their inventory, shipping, and customer service, often at a lower cost. But who benefits the most from selling on Amazon FBM? In this article, we’ll explore the types of sellers who can maximize their profits and growth by opting for the FBM model.
10 Types of Sellers Who Benefit the Most from Amazon FBM
Not all sellers are best suited for Amazon’s FBA program. For many, Amazon FBM offers a better fit, allowing greater control over costs, inventory, and customer experience. FBM is particularly beneficial for sellers with specific needs that align better with managing their own fulfillment processes. Below, we break down the top 10 types of sellers who stand to gain the most from choosing to sell on Amazon FBM.
1. Experienced sellers
Experienced sellers with a well-established fulfillment infrastructure often benefit significantly from Amazon FBM. These sellers usually have existing systems and processes in place for inventory management, order processing, shipping, and customer service.
They have honed their logistics over time and are well-equipped to handle fulfillment independently, allowing them to avoid the fees and restrictions associated with FBA.
Benefits of using FBM for experienced sellers:
- Cost Control
Experienced sellers can leverage their existing logistics networks to negotiate lower shipping rates and reduce fulfillment costs. - Flexibility
FBM allows these sellers to make real-time adjustments to their fulfillment processes, inventory levels, and shipping methods, which is essential for maintaining profitability in a competitive marketplace. - Customization
They can provide a unique, branded customer experience by using their own packaging, adding personalized touches, or including promotional materials. - Reduced Fees
By avoiding FBA’s storage and fulfillment fees, experienced sellers can keep more of their profits, especially on low-margin items or products that don’t require Prime eligibility to sell well.
Product types ideal for FBM:
- Bulk goods such as office supplies
- Low-margin items such as budget electronics
- Products needing special handling such as fragile glassware
2. Sellers of Regulated Goods
Sellers dealing with regulated, restricted, or perishable products often find Amazon FBM to be the best option. These items may face stringent regulations or specific handling requirements that can complicate fulfillment through Amazon FBA. FBM allows sellers to navigate these regulations more easily and maintain control over storage and shipping conditions.
Benefits of FBM for regulated goods:
- Regulatory Compliance
Easier to meet specific regulatory requirements and handle restricted products without facing FBA restrictions. - Control Over Conditions
Ability to manage storage and shipping conditions for perishable goods to maintain product quality. - Faster Adaptation
Flexibility to adjust to changing regulations or market demands quickly.
Sample products that are Regulated goods:
- Supplements and vitamins
- Certain beauty products such as skincare with active ingredients
- Perishable goods such as gourmet foods and fresh produce
- Hazmat items such as batteries and cleaning chemicals
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3. Sellers of Oversized or Heavy Products
Sellers dealing with oversized or heavy products often find Amazon FBM a more cost-effective option. FBA’s fees for storing and shipping large or heavy items can be prohibitively high, cutting into profit margins. By using FBM, these sellers can avoid those extra costs and have more control over how their products are stored and shipped.
Benefits of FMB for oversized or heavy products:
- Cost Savings
Avoid high FBA fees associated with large or heavy items by managing storage and shipping independently. - Control Over Shipping
Flexibility to choose the most economical or reliable carriers and methods for oversized or heavy goods. - Reduced Risk of Damage
Better control over packaging and shipping processes, reducing the risk of damage that can occur with third-party handling.
Sample oversized or heavy products:
- Furniture such as sofas and tables
- Home fitness equipment such as treadmills and weight sets
- Large appliances such as refrigerators and washing machines
4. Sellers of Unique or Handmade Goods
Sellers offering unique, custom, or handmade products often benefit from using Amazon FBM. These products typically require special handling, unique packaging, or personalized touches that don’t align well with the standardized processes of FBA.
By managing fulfillment in-house, sellers can maintain control over how these items are presented and delivered to customers.
Benefits of FBM for unique or handmade goods:
- Personalization
Ability to add unique packaging, notes, or custom branding that enhances the customer experience. - Quality Control
Direct oversight of the fulfillment process ensures that each product meets quality standards. - Sellers can easily adjust their offerings or production processes without being bound by FBA’s requirements.
Sample products that are unique or handmade goods:
- Handmade crafts such as pottery and jewelry
- Custom apparel such as personalized t-shirts and bespoke clothing
- Artisanal goods such as gourmet foods and specialty candles
5. Sellers of Low-Volume or Seasonal Products
Sellers with low-volume, seasonal, or niche products often find Amazon FBM to be the most practical fulfillment option. Products with sporadic sales or seasonal demand can accumulate high storage fees under Amazon FBA, particularly during off-peak periods.
FBM allows these sellers to manage their inventory on their terms, avoiding unnecessary costs.
Benefits of FMB for low-volume or seasonal products:
- Cost Efficiency
Avoid long-term storage fees associated with low turnover or seasonal products. - Inventory Flexibility
Ability to adjust stock levels based on seasonal demand without incurring penalties. - Market Agility
Easier to pivot or introduce limited-time products tailored to niche audiences.
Sample low-volume or seasonal products:
- Seasonal decorations such as holiday ornaments and Halloween costumes
- Limited-edition items such as collector’s items and exclusive merchandise
- Niche market products such as specialized tools, rare books
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6. Sellers Focused on Brand Control
Sellers who prioritize maintaining a strong brand identity and a direct relationship with their customers often benefit from using Amazon FBM. These sellers want full control over their packaging, branding, and customer experience, which is not always possible with Amazon FBA’s standardized processes.
Benefits of using FBM for brand control:
- Brand Consistency
Control over packaging, presentation, and unboxing experience to reinforce brand identity. - Enhanced Customer Experience
Direct engagement with customers allows for personalized service and stronger customer relationships. - Customization Flexibility
Freedom to include promotional materials, personalized notes, or unique packaging elements that differentiate the brand.
Sample brand controlled products:
- Premium or luxury products such as high-end fashion and boutique beauty items
- Subscription boxes such as curated monthly collections
- Specialty food products such as gourmet snacks and artisanal teas
7. Sellers Using Dropshipping
Sellers using a dropshipping model can significantly benefit from Amazon FBM. In dropshipping, sellers list products on Amazon but don’t hold inventory themselves; instead, they fulfill orders directly from third-party suppliers.
FBM is ideal for this model since it allows sellers to handle their own fulfillment process without the constraints of FBA inventory requirements.
Benefits of FBM for sellers using dropshipping:
- No Inventory Costs
Sellers do not need to invest in holding inventory, reducing upfront costs and risks. - Flexible Product Range
Ability to offer a wide variety of products without being limited by storage or inventory constraints. - Control Over Fulfillment
Direct coordination with suppliers ensures timely shipping and better management of customer expectations.
Sample products for dropshipping:
- Third-party-sourced goods such as electronics and fashion accessories
- Products from various suppliers such as home decor and gadgets
- Low-cost, high-demand items such as trending consumer goods
8. Sellers of Fragile or High-Value Items
Sellers dealing with fragile or high-value items often find Amazon FBM to be the most suitable fulfillment option. These products require special care, custom packaging, and careful handling to prevent damage or loss, which can be challenging to achieve with Amazon FBA’s standard processes.
Benefits of FBM for fragile or high-value items:
- Better Handling
Control over packaging and shipping processes to ensure fragile items are protected and high-value items are secure. - Reduced Risk of Damage
Minimize damage risk by choosing specialized packaging materials and shipping methods. - Improved Customer Confidence
Provide a higher level of assurance and satisfaction by offering meticulous care in handling and delivery.
Sample fragile or high-value products:
- Fragile goods such as glassware and ceramics
- High-value electronics such as cameras and smartphones
- Luxury items such as fine jewelry and designer handbags
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9. Sellers with Low Margins
Amazon sellers operating with low-margin products often benefit from using Amazon FBM. For these sellers, FBA’s fees—such as storage, fulfillment, and removal fees—can quickly erode profit margins.
By opting for FBM, they maintain tighter control over costs, ensuring their operations remain profitable.
Benefits of FBM for low margins:
- Lower Fees
Avoid FBA’s storage and fulfillment fees, which is crucial for maintaining profitability on low-margin items. - Cost Efficiency
Greater flexibility to manage fulfillment processes, negotiate shipping rates, and minimize overall expenses. - Price Competitiveness
Ability to keep product prices competitive by controlling costs more effectively.
Sample low margin products:
- Budget electronics such as earbuds and phone chargers
- Everyday essentials such as household items and small kitchen tools
- Low-cost accessories phone cases and hair accessories
10. Sellers Targeting International Markets
Amazon sellers looking to expand into international markets often find Amazon FBM to be the most flexible and customizable option.
With FBM, sellers can handle their own international shipping, choose preferred carriers, and manage customs and import regulations, allowing them to tailor their approach to different regional markets.
Benefits of using FBM for targeting international markets:
- Shipping Flexibility
Control over international shipping methods, carriers, and costs, allowing for more tailored delivery strategies. - Regulatory Compliance
Easier navigation of complex customs and import regulations by managing shipments directly. - Market Adaptability
Ability to localize product listings, customer service, and marketing strategies for different countries.
Sample products targetting international markets:
- Region-specific products such as local crafts and specialty foods
- Niche market goods such as cultural items and language-specific books
- Products with unique shipping requirements such as temperature-sensitive items
Why You Should Sell on Amazon FBM
Choosing the right order fulfillment method is crucial for your Amazon business. For many Amazon sellers, FBM offers greater control over shipping, inventory, and customer service, along with cost savings.
As an FBM seller, you can better manage specialized, seasonal, or high-value products and maintain brand control. The flexibility of FBM also suits sellers targeting international markets or handling unique or regulated goods. Evaluate your needs to see if becoming an Amazon FBM seller can help you maximize your profits and grow your Amazon business.
Do you need assistance with your Amazon business? Get the help you need today from our Amazon agency!
FAQs About Amazon FBM (Fulfillment by Merchant)
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