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.
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.