Fulfillment Made Easy: Why FBA might be the game-changer for businesses?

Work smarter not harder, that’s something we know by heart. And it is even more important to eCommerce sellers who try to grow their online businesses without sacrificing their personal lives. Amazon knows that and has been working to provide merchants with options to optimize their online sales, namely FBM and FBA. Let’s find out about them and which you can leverage to bring your business to the next level.

Both FBM and FBA are sales models offered by Amazon Global Selling to its 9.7 million registered sellers worldwide (SellerApp, 2022). On one side, FBM (Fulfillment by Merchant) is a  fulfillment service in which the seller is fully responsible for the entire sales process on the platform (@MakingPrime Prime, n.d.). Said, you sell chocolate on Amazon. By adopting FBM, you will have to take care of everything, from managing the chocolate in your warehouse (if you have one), fulfilling and shipping chocolate to your customers, handling complaints and returns of badly-tasted chocolate, while spending time promoting your chocolate on social media. 

Despite the hard work, merchants who follow the FBM service can have more control over what they sell and less dependence on Amazon regarding how they want to grow their brand. On the other side, FBA (Fulfillment by Amazon) helps sellers partially outsource their sales process to Amazon. In this case, Amazon is in charge of storing, packing, and delivering your chocolate to the customers. FBA sellers, thus, could take advantage of Amazon's efficient fulfillment services,  cost-effective shipping, and trusted customer service and returns.

Given both visible advantages, it is really up to the sellers to decide which is best for them. While FBM is better suited to entrepreneurs who want to autonomously manage their business or companies that sell luxury, exclusive, or heavy products, FBA is perfect for sellers who cannot afford warehouse space, employees, or time to train themselves on the complicated sales process (Jungle Scout, 2023).

However, if you think of scaling up your online store, it is advised that you seek help from FBA, which will allow you to reach 200 million Amazon Prime members and leverage traffic from its on-site marketing. Most importantly, you are only charged for the orders Amazon fulfills without any extra or referral fees. In fact, FBA is being endorsed by an impressive 94% of Amazon sellers, some of which are major companies, such as Procter & Gamble, Johnson & Johnson, etc. (SellerApp, 2022). 

In light of the benefits of FBA and the potential eCommerce market in Vietnam, Amazon Global Selling has partnered with LianLian Global to host a series of exclusive workshops called “From POD to FBA” for LianLian Global customers across Vietnam. The workshops touched on various aspects of POD (Print-On-Demand), FBA, and other available models on Amazon. 

With the workshops, Amazon merchants can discover the potential of dropshipping by FBA as a credible and effective method for Amazon merchants to optimize their online businesses and elevate customers' shopping experience.