Q4 Prep Series: Why You Should Consider FBM for Your Amazon Business
Are you ready for the most magical time of the year? Q4, or the fourth quarter of the year, is the traditional retail holiday season that spans from October to December. As an Amazon seller, this is the time when you can make a lot of profit. In fact, last year, I made $168,000 in sales and $44,000 in profit in just three months. That's why I'm excited to share with you why you should consider FBM, or fulfilled by merchant, for your Amazon business.
📦 What is FBM?
FBM is a fulfillment method where the seller is responsible for storing, packing, and shipping their products to customers. Unlike FBA, or fulfilled by Amazon, where Amazon handles all of these tasks, FBM allows sellers to have more control over their inventory and shipping process.
🤔 Why are sellers hesitant to try FBM?
Many sellers are hesitant to try FBM because it can be intimidating and require more work. However, if you can get over the fear of the unknown and just do it, you can make a ton of profit. Here are some common fears and misconceptions about FBM:
- Fear of shipping: Shipping can seem daunting, but it's not as complicated as it seems. You can use USPS, UPS, or FedEx to ship your products, and there are many resources available to help you calculate shipping costs and print labels.
- Fear of returns: Returns are a part of any business, but they don't happen as often as you might think. And when they do happen, you can manage them by asking for photos and filing claims with carriers or Amazon.
- Misconception that FBA is always better: FBA is a great option for many sellers, but it's not always the best option. FBM can be more profitable for certain products, especially if they are small, lightweight, and easy to replenish.
💰 Why should you consider FBM?
There are many reasons why you should consider FBM for your Amazon business, including:
- Faster replenishment: With FBM, you can replenish your inventory faster because you don't have to wait for Amazon to receive and process your products. This means you can sell more and make more profit.
- Lower fees: FBM has lower fees than FBA, which means you can sell more items that make more profit. You only pay the referral fee, and you don't have to pay the FBA pick and pack fee.
- More control: FBM gives you more control over your inventory and shipping process. You can choose your own shipping carrier, packaging materials, and shipping speed. This can lead to a better customer experience and more repeat business.
- Ability to sell Hazmat items: Hazmat, or hazardous materials, are items that require special handling and shipping. FBA has strict rules about Hazmat items, but with FBM, you can sell them as long as you follow the proper guidelines.
- Ability to make your own bundles: With FBM, you can make your own bundles and sell them as a unique product. This can lead to higher profit margins and less competition.
📈 How can FBM help you during Q4?
FBM can be especially helpful during Q4 because:
- You don't have to worry about holiday cutoff times: FBA can take longer to process and ship products during Q4, which means you might miss out on holiday sales. With FBM, you can ship products faster and make more sales.
- You can sell meltable items: Meltable items, such as chocolate and candy, cannot be sent to FBA during Q4 because they might melt in transit. With FBM, you can sell these items as long as you follow the proper guidelines.
- You can sell out-of-stock items: If an item is out of stock on Amazon, you can still sell it through FBM. This can lead to higher profit margins and less competition.
📝 Conclusion
FBM can be a great option for Amazon sellers who want more control over their inventory and shipping process. It can be intimidating at first, but with the right resources and mindset, you can make a lot of profit. During Q4, FBM can be especially helpful because it allows you to sell more, replenish faster, and avoid holiday cutoff times. So don't be afraid to try FBM and see how it can help your Amazon business grow.
Pros and Cons of FBM
Pros:
- Faster replenishment
- Lower fees
- More control
- Ability to sell Hazmat items
- Ability to make your own bundles
- Can sell out-of-stock items
Cons:
- Requires more work
- Shipping can be intimidating
- Returns can be a hassle
- FBA is still a great option for many sellers
Highlights
- FBM, or fulfilled by merchant, is a fulfillment method where the seller is responsible for storing, packing, and shipping their products to customers.
- FBM can be more profitable for certain products, especially if they are small, lightweight, and easy to replenish.
- FBM can be especially helpful during Q4 because it allows you to sell more, replenish faster, and avoid holiday cutoff times.
- Pros of FBM include faster replenishment, lower fees, more control, ability to sell Hazmat items, ability to make your own bundles, and ability to sell out-of-stock items.
- Cons of FBM include requiring more work, shipping can be intimidating, returns can be a hassle, and FBA is still a great option for many sellers.
FAQ
Q: Is FBM more profitable than FBA?
A: It depends on the product. FBM can be more profitable for certain products, especially if they are small, lightweight, and easy to replenish. However, FBA is still a great option for many sellers.
Q: Is FBM more work than FBA?
A: Yes, FBM requires more work because you are responsible for storing, packing, and shipping your products to customers. However, the extra work can lead to more profit and more control over your business.
Q: Can I sell Hazmat items with FBM?
A: Yes, you can sell Hazmat items with FBM as long as you follow the proper guidelines for handling and shipping them.
Q: Can I make my own bundles with FBM?
A: Yes, you can make your own bundles with FBM and sell them as a unique product. This can lead to higher profit margins and less competition.
Q: Is FBM a good option for Q4?
A: Yes, FBM can be a great option for Q4 because it allows you to sell more, replenish faster, and avoid holiday cutoff times.
