Choosing a fulfillment program is one of the main tasks for Amazon sellers. The marketplace offers business owners two options for cooperation: Fulfillment by Amazon (FBA) and Fulfillment by Seller (FBM). Listed below are the pros and cons of these programs.
With FBA, the trading platform takes on the majority of tasks such as product storage, processing, and delivery. This option could suit those who wish to reduce their workload and involvement by delegating the key tasks to Amazon.
With the FBA option, Amazon cooperates with the business owner according to the following plan:
- First, the business owner labels the products and sends them to Amazon warehouses. Then the entrepreneur makes his own product cards and adds them to the site.
- After verification, the platform allows the products to go on sale.
- A buyer makes a purchase. The marketplace employees accept the order and deliver it to the recipient, and the seller makes a profit from the sale.
- If the buyer cancels or returns an order, Amazon issues a return, including a refund for the order.
With the FBM option, the majority of tasks and responsibilities fall on the seller. The seller is responsible for the storage, which means they should have their own warehouses or other storage facilities. This option works as follows:
- The business owner packages the products, labels them, and stores them in their warehouse.
- Next, they make product cards, upload them to the marketplace, and begin selling immediately because with the FBM program, Amazon does not check product descriptions.
- A buyer makes a purchase. After that, the business owner sends the package to the recipient. For delivery, it is possible to cooperate with third parties that deliver packages to different cities and countries.
- In case of an order cancellation or return, the seller is the one to issue a refund and return the money to the customer.
Before finding a warehouse to store products, the seller has to order them from a reliable supplier and transport them to the United States. The most convenient and reliable way to do that is to purchase the products in China via an intermediary, namely by Fastimport. Fastimport organizes cargo delivery by sea and air. The company excels in finding suppliers in China, signing profitable contracts with them and delivering goods to the United States.
Which program is better: FBA or FBM
Each program has its own advantages and disadvantages. The most convenient option is chosen by the seller.
Benefits of FBA:
- Minimum investment of effort. Most of the tasks are done by Amazon employees, who help beginners save time on learning.
- Reliability. The sellers do not have to burden themselves with the storage and the delivery of the products: Amazon does this themselves.
- Great opportunities. By delegating most of the tasks to Amazon, it is much easier for the seller to work remotely, selling goods to foreign markets. Also, the platform allows the seller to put products on the site in one copy and to determine the number of items available for sale.
- Fast delivery. Amazon logistics allows customers to receive their goods rather quickly. This helps sellers make a better profile, because delivery time is highly important to the customer and the faster a delivery, the happier the customer.
- Availability of the Amazon Prime feature. With this option, a business owner can use free and fast delivery.
The FBA program has its disadvantages: there are additional expenses for the site and product storage, as well as fees for long-term storage in the warehouse. The seller cannot know in advance exactly what sum they will need to start the business. In this case, Amazon will have to be consulted.
Benefits of FBM:
- Saves money. The seller is responsible for the warehouses, product storage, and the delivery. They do not need to spend money to get help from the site. Also, with the FBM program, businessmen pay a lower commission than with FBA.
- Opportunity to cooperate with other marketplaces. If an entrepreneur has one large warehouse, they can sell goods on any other site.
- Opportunity to experiment with packaging. Some sellers want their brand to be more recognizable, so for this purpose they can use non-standard packaging or eco-friendly materials.
The FBM scheme has its disadvantages: it can be a big waste of time and energy, as the seller holds full responsibility for the products. Delivery takes more time, which can consequently scare away potential buyers. With FBM, it is impossible to obtain Amazon Prime, making it harder for business owners to compete.
Two programs unite into one – the seller buys the products themselves. At this stage, many difficulties may be encountered, especially if the business owner makes large orders for the first time.
How Does Air Delivery From China Work?
You send the cargo to one of our warehouses in China. We can also pick it up ourselves from your warehouse or from the supplier.
When the cargo arrives at our warehouse, we inspect it to make sure that it is undamaged and that there are no defects or missing pieces. If necessary, it is placed in additional packaging, or a crate (requires additional payment).
Marking and Loading
Each parcel receives its own unique tracking number and is consolidated with other goods.
Our employees specialize in the customs clearance process in China. They will bring your cargo to the customs inspection point and shepherd your goods through the process.
After passing through customs, your cargo is released, flown to the United States, and delivered to you at your doorstep.
You will receive a quote including total delivery costs within just one day of submitting an inquiry. Your quote will include customs fees and all additional costs associated with delivering your package to the United States. This is a fixed price that will not change throughout the process.
Bare minimum of documents
We draw up our own delivery contract, so there’s no need for you to deal with complex international economic relations, worry about customs clearance or any other paperwork. We'll do everything for you.
Delivery to your door
We will arrange delivery to any address in the United States. You can additionally pick up your package(s) yourself at our warehouse. We don’t send customers to the airport, as many other companies do.
What can be sold on the Amazon platform
Many business owners prefer products with little to no competition in order to get more orders. It is best to acquire products at a low cost and sell them at a significant markup.
The most popular niches on Amazon include the following:
- Souvenirs, gifts;
- Clothes, including hand-sewn clothes;
- Decorations, accessories;
Whichever category of products you choose, we suggest that you get in contact with Fastimport to resolve all logistical issues. Our staff will advise you on organizing the transportation of souvenirs, consumer goods, furniture production in China, cost, delivery time, etc.
What products cannot be sold
Despite the wide variety of product niches, some categories are prohibited from being sold on Amazon, such as:
- Alcoholic drinks, drugs;
- Fragile items;
- Chemical solutions;
- Nutritional supplements;
- Copies of famous brands, etc.
If you need to arrange the delivery of goods from China to the United States profitably and with a guarantee, we recommend contacting us at Fastimport. We deliver cargo promptly in various ways and at reasonable prices.