Online sellers: Should you use FBA or FBM?
WFFH: Is Fulfillment by Amazon (FBA) the smartest option for e-commerce sellers? Not always
(“Work Fluently From Home,” or WFFH, is a series within “Window Shopping” geared toward entrepreneurs, solopreneurs, gig workers and startups.)
Gone are the days when online shoppers waited four to six weeks for a package to arrive, now largely due to powerhouse online marketplace Amazon. But are today’s online consumers more interested in where the items are shipped from or just getting them in a timely manner? In the U.S., most consumers (40%) want packages in a two-day turnaround. Meanwhile, 18% of online consumers want their items even faster — next-day delivery. Other online consumers are a little more patient — 21% are willing to wait three to four days.
So e-commerce sellers, would your inventory be better off sold and shipped via Fulfillment by Amazon (FBA) or should your company opt for Fulfillment By Merchant (FBM)? There are pros and cons for both.
ADVERTISEMENT ~ Amazon
As an Amazon affiliate, I earn a percentage from purchases with my referral links. I know some consumers are choosing to boycott Amazon for its DEI removal. However, after thinking about this thoroughly, I want to continue promoting cool products from small businesses, women-owned businesses and (specifically) Black-owned businesses who still feature their items on Amazon. As of the first date of Black History Month 2025, each new post will ALWAYS include a MINIMUM of one product sold by a Black-owned business. (I have visited the seller’s official site to verify that Amazon Black-owned logo.) I am (slowly) doing this with older, popular posts too. If you still choose to boycott, I 100% respect that decision.
The good news is FBA and FBM services take over the obligation to handle Customer Service, returns and calculate shipping rates. This frees up company time to handle more pressing issues, such as making sure the inventory is of quality and working on new product releases. However, there are some caveats for using third-party shippers.