With Amazon being the most prominent company, to date at least, in helping the eCommerce business, many sellers want them in for this company. There are three types of Fulfillment Ways: Fulfillment by Amazon (FBA), Fulfillment by Merchant (FBM), and Seller Fulfilled Prime (SFP). Let’s look at these in detail to know how much you can make selling on amazon.
Fulfillment By Amazon
This is essential to remember here is that only when Prime eligibility status is given will Amazon take care of the fulfillment process. You will win ‘’BUY BOX’’, which helps increase your sales. The above statement is just a domino effect wherein the discounts from manufacturers and your Selling Rate won’t be affected if any damage occurs to your products while being delivered.
With experience, you will be able to use the FBA to the advantage of what it can offer. Because the fees you pay for FBA are roughly double that of FBM, with the uncertainty of whether your inventory will sell or not, you have no control over many aspects of your product. The worst part is your products will be intermingled with other sellers. The above might make you lose your chance to win the BUY BOX, lose money, and get your account suspended!
Fulfillment By Merchant
FBM can be very advantageous compared to FBA, especially for experienced sellers, and it is much cheaper. The first thing to note is that FBM means you are in charge of fulfilling all the orders, including storage, the commission fee for Amazon, and shipping costs, which customers can also fulfill. But be warned that it is challenging to contend with Amazon Prime users.
One more minus point is that your Seller Rating might take a hit along with your account being suspended if on-time delivery or order defect is detected and is at a higher rate than acceptable for Amazon terms. Many people in business don’t invest too much into FBM due to the money and time needed to build the infrastructure and make sure they can go through the fulfillment process without any hindrance.
Seller Fulfilled Prime
SFP can also be related to 3PF (Third Party Fulfillment). This method is the ideal window of opportunity to get all the benefits. Only a Prime member can contact you and maintain control of all the products, and it is your responsibility. But there are specific tasks to be fulfilled to get SFP. Your ability to fulfill an order in record time, with a guarantee of delivery, meeting the Amazon Seller Demands, while also getting the eligibility to get seller discounts and shipping discounts.
You will be able to achieve the last due to the additional bulk of products you will be selling with SFM while having Premium Shipping. But SFP is tough to accomplish and maintain as well. You need to have strong performance and a very successful seller account with a high delivery rate and low cancellation rate, with positive customer feedback.
Conclusion
These are the three different and unique Amazon Fulfillment Options and other procedures on how much you can make selling on Amazon using FBA, FBM, and SFP. The above is all we have to share, and we hope this helps you do a prosperous business through Amazon, knowing the proper tactics.
