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Difference between Amazon FBM or FBA Business

Started by Mohammad wajid, Mar 13, 2024, 01:14 PM

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Mohammad wajid

   Amazon FBM (Fulfillment by Merchant) and FBA (Fulfillment by Amazon) are two different business models for selling products on Amazon's platform:
Fulfillment by Merchant (FBM)
   With FBM, the seller is responsible for storing, packing, and shipping the products to customers directly.
   The seller maintains control over the entire fulfillment process, including inventory management and customer service.
   This model is typically chosen by smaller sellers who prefer to handle their own inventory and fulfillment logistics.
Fulfillment by Amazon (FBA):
   FBA allows sellers to store their products in Amazon's fulfillment centers.
   Amazon takes care of picking, packing, shipping, and customer service for these products.
   Sellers send their inventory to Amazon's warehouses, and Amazon handles the rest of the fulfillment process, including customer returns.
   FBA is often preferred by sellers who want to scale their operations without dealing with the logistical challenges of fulfillment.
   In summary, with FBM, the seller handles all aspects of fulfillment, while with FBA, Amazon handles the fulfillment process, providing convenience and scalability to sellers. Each model has its pros and cons, and the choice between them depends on factors such as the seller's business size, resources, and preferences.