Have you heard the famous phrase that you can’t judge a book by its cover? You have to first dive deep into the details of the story. It’s the same with some Amazon topics.

Fulfillment-by-merchant (FBM) is an option we don’t talk about often, and it’s somehow left for the Sellers with oversized products.

Why is this so, and how do you decide if FBM suits your brand? Just like reading a book, let us quickly remind you of this method’s pros and cons.

Pros:

• FBM is a good choice for big, bulky products and bundles.
• You have more control over your product line and its customization via FBM. Stock isn’t lost often. You can take products in and out without Amazon restocking limits by using a reliable, small third-party logistics (3PL) company.
• If you are selling a product in different variations, colors, etc., some of its parts would be sent in separate packages if you are using FBA. When selling with FBM, you can combine and customize every order and send it at once, thus saving on shipping fees.
• You don’t have to pay long-term storage fees.
• It is suitable if you want to create different FBM variations for ordering multiple units (e.g., 6, 12-packs) that customers rarely purchase. In most cases, fees for Fulfillment-by-Amazon are too high for these products, but FBM allows your loyal customers to buy at a lower price.
  
  

Cons:

• Businesses offering FBM instead of FBA usually have lower conversions. Customers don’t have much assurance of their order, making your brand less trustworthy and convenient for Amazon.
• In most cases, you don’t have the “buy box” or “add to cart” button for the first 90 days if you are a new Seller using FBM. It depends on the category, but Amazon’s trust in Sellers shipping with FBM is much lower than those selling with FBA.
• You can’t offer Prime shipping until you prove your business is safe to Amazon. Most Amazon users are already used to fast delivery. Thus not having 1-2 day shipping will lower your CR. 1-2 day shipping is expensive for Sellers, but buyers prefer instant gratification.
  
  

Fulfillment-by-merchant is the only option for some brands; for others, it’s an excellent addition to a current strategy. We combine both methods for some of our clients to find the perfect balance, even if they are one-product brands.

What are your thoughts and experience with FBM? Do you prefer more control over the product, or do you count on FBA’s convenience?