📈 The Benefits of Switching to FBM on Amazon During COVID-19
As a result of Amazon's restrictions on certain categories in their FBA centers due to the ongoing pandemic, many sellers have had to switch to merchant fulfilled orders (FBM) to keep their businesses running. In this article, we'll discuss the benefits of switching to FBM during this time and provide tips on how to make the transition smoothly.
Table of Contents
- Introduction
- Understanding FBM vs FBA
- Why Switch to FBM During COVID-19?
- Tips for Switching to FBM
- Pros and Cons of FBM
- Inventory Management for FBM
- Performance Metrics for FBM
- Sales Numbers and Growth Potential with FBM
- Conclusion
- Resources
Introduction
As an Amazon seller, you may have experienced the impact of the pandemic on your business. With Amazon restricting certain categories in their FBA centers, many sellers have had to switch to FBM to keep their businesses running. In this article, we'll explore the benefits of switching to FBM during this time and provide tips on how to make the transition smoothly.
Understanding FBM vs FBA
Before we dive into the benefits of FBM, let's first understand the difference between FBM and FBA. FBA stands for "Fulfillment by Amazon," which means that Amazon stores and ships your products for you. With FBM, you store and ship your products yourself.
Why Switch to FBM During COVID-19?
With Amazon restricting certain categories in their FBA centers, many sellers have had to switch to FBM to keep their businesses running. However, there are also other benefits to switching to FBM during this time. One of the main benefits is that more people are shopping online right now due to the pandemic, which means that there is a higher demand for products. By switching to FBM, you can keep your store moving and your items in stock, which can lead to increased sales.
Tips for Switching to FBM
If you're considering switching to FBM, there are a few tips that can help make the transition smoother. First, make sure you stay on top of your orders and performance metrics. With FBM, you need to make sure that you're keeping the customer happy and shipping items on time. Second, only list items that you actually have in stock. Don't go into drop shipping or list items that you won't be able to ship right away. Finally, be prepared for more work with FBM. You'll need to individually pack every item and ship them yourself, which can be time-consuming.
Pros and Cons of FBM
Like any business decision, there are pros and cons to switching to FBM. One of the main pros is that you have more control over your inventory and shipping. You can also save money on storage fees and shipping costs. However, FBM requires more work and can be more time-consuming than FBA. You'll also need to keep track of your inventory and performance metrics more closely.
Inventory Management for FBM
Inventory management is key when it comes to FBM. You need to make sure that you only sell items that you actually have in stock and that you're able to source or that you already have at your warehouse. If you list items that you don't have in stock, you could be on the hook for your performance metrics going down if you don't ship the item when you say you will.
Performance Metrics for FBM
Performance metrics matter a lot more with FBM than they do with FBA. You need to make sure that you're keeping the customer happy and shipping items on time. With FBM, customers seem to be complaining more than they have in the past, so it's important to be understanding and make sure that you're shipping items when you say you will.
Sales Numbers and Growth Potential with FBM
Switching to FBM can lead to increased sales, especially during this time when more people are shopping online. By keeping your store moving and your items in stock, you can take advantage of this increased demand. Additionally, FBM can lead to growth potential for your business. By reinvesting your profits and continuing to purchase more inventory, you can sell more and make more money.
Conclusion
Switching to FBM during COVID-19 can be a smart business decision for Amazon sellers. By keeping your store moving and your items in stock, you can take advantage of the increased demand for products. However, it's important to keep in mind that FBM requires more work and inventory management than FBA. By following the tips provided in this article and staying on top of your performance metrics, you can make the transition to FBM smoothly and take advantage of the growth potential for your business.
Resources
- [VOC AI Chatbot](https://www.voc.ai/product/ai-chatbot) - An AI chatbot that can automatically reduce large amounts of work on customer services.
