What are other sellers doing?
2020 State of the Amazon Seller | junglescout.com/amazon-seller-report/
Fulfillment by amazon
Fulfillment by Amazon and automatic Buy Box eligibility sounds like a win-win for Sellers
- No Seller control over fulfillment process
- Shipments sent to FBA must adhere to time consuming policies (i.e. individual labels)
- Can be difficult to track inventory and maintain optimal stock levels throughout the year
- Unable to customize package design or add-on (like a brochure or coupon)
- Can be difficult to prove Amazon’s fault over lost or damaged products
Fulfillment by Merchant
Fulfillment by Merchant gives you total control and may save money, but you will not be eligible for the Buy Box unless you qualify for Seller Fulfilled Prime
Seller Fulfilled Prime
Seller Fulfilled Prime is a great option for certain companies, but the hassle may not be worth the reward to every Seller
- Sellers will no longer be able to specify zip codes eligible for fast shipping and must be able to provide 2-day shipping nationwide
- All merchants using Seller Fulfilled Prime must now offer Saturday delivery and pick-up.
Which is best for your Business?
Every fulfillment option comes with unique benefits and challenges. We recommend choosing a fulfillment method on an individual product basis. Below are several factors to consider when deciding which method is best for your product.
- Product Dimensions
- Amazon’s FBA pricing structure does not benefit large or heavy products. Choosing FBA for bulky items may reduce your profits through storage and fulfillment fees.
- Product Popularity
- Popular items that turn over quickly will improve your inventory score and won’t incur as many storage fees. Slower moving items may be cheaper to fulfill by merchant.
- All Costs and Fees
- FBA fees can be intimidating, but Sellers considering FBM should also bear in mind the cost of storage, shipping, packaging, and labor to fulfill their own products. Products fulfilled by merchant that do not qualify for SFP may sell slowly due to the loss of the Buy Box, resulting in reduced revenue.
- Customer Reviews
- Shipping speed and quality can heavily influence customer feedback. Amazon Sellers using FBA have less control over the customer experience, but they also have less to worry about when it comes to negative feedback.