There are two model to sell on Amazon, one is Amazon FBA and other is Amazon FBM
Your products are eligible for Amazon Prime free Two-Day Shipping, FREE Shipping, and other benefits.
Prime members love free Two-Day Shipping, and all Amazon.com customers can get free shipping on eligible orders.
When you list products for FBA, they are eligible for free shipping, too. FBA listings are displayed with the Prime logo, so customers know that Amazon handles packing, delivery, customer service, and returns. As you grow your competitive edge, you can increase your chance of winning the Buy Box.
Plus, when you register for an Amazon.com seller account, you can sell on Amazon’s marketplaces in Canada and Mexico.
Customers get Amazon’s trusted customer service and returns.
FBA handles customer service and returns for Amazon.com orders.
Our services let your business grow quickly.
Our fulfillment centers are built with your inventory in mind, and there’s no minimum for the number of products you send. We handle the details to save you time, so you can focus on your business.
It’s cost-effective and simple.
Pay as you go—you are charged for storage space and the orders we fulfill. The cost of shipping is included in your fees, with no extra charge for Amazon Prime free Two-Day Shipping and free shipping on eligible orders. Fees for Selling on Amazon and optional services may apply.
Amazon has proven to be one of the most complex and competitive marketplaces in the world. Sellers navigating the marketplace have to find ways to not only compete against millions of other retailers but also to find ways to manage their fulfillment processes. Amazon offers two different vessels for this: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).
Fulfilled By Merchant is when a seller lists a product on Amazon and elects to ship products to each buyer by himself. A rather advantageous method for products with lower margins, the Amazon FBM is rather overlooked for the easy shipping and handling of Amazon FBA.
On setting up a seller account on Amazon, you can choose to deliver your products using the FBA services or do it yourself, aka Amazon FBM. On setting up a product listing, the merchant is responsible for shipping the orders to the customer’s delivery address, from their warehouse location on receiving orders. The MFN ( Merchant Fulfilled Network ) seller is also responsible for handling the returns and provide customer service as well.
FBM is better for exclusive products, small volume products or products with lower profit margins.
° Exclusive products – products that have a lower frequency of sales
° A smaller volume of products – cuts down the shipping charges for a relatively low volume of product units.
° Products with lower profit margins – helps save on the warehousing and storage fees on FBA (if you have a cheaper alternative from the FBA warehouse).