Take Complete Control of Purchasing, Shipping, and Receiving
Fulfillment by Merchant (FBM) is when the seller controls the entire handling and shipping process. Instead of paying a service fee and shipping inventory to Amazon to handle these activities, the seller uses its own resources – or the resources of a third-party fulfillment partner (like Logistics Plus) – to warehouse and distribute merchandise directly to its buyers. By choosing FBM, a seller takes complete control of the entire process, from purchasing to shipping and receiving. Complete control also comes the potential for significant savings over the Fulfillment by Amazon (FBA) model.
When Should You Choose FBM?
Selling items using the Fulfillment by Merchant method is beneficial for the seller when sold merchandise is exclusive to the seller’s business. This will build credibility for the seller, its products, and its online store. Using FBM is also beneficial for lower-volume businesses. The shipping process does not become overwhelming nor possibly affected by the stringent stocking and delivery standards expected by Amazon or its customers.
What are the advantages of FBM?
- Seller maintains full control over every aspect of the business.
- Margins are greater since the seller does not need to pay additional fees to Amazon.
- Brand-building is more attainable.
- There is no need to worry about any unavoidable losses due to policy changes at Amazon.
- The seller has less paperwork to deal with when working directly with the buyer.
- The seller has the freedom to run the business as desired.
- The seller has a greater grasp of inventory in stock, what sells, and what changes may need to be made.
- There are no unexpected costs; the seller is aware of all finances every step of the way.
Logistics Plus is an experienced, full-service third-party logistics provider. We have over 2 million square feet of available warehousing space across North America. Sellers that store their merchandise at our facilities receive competitive storage rates, real-time inventory status tools, complete pick, pack, and shipping capabilities, domestic and international shipping options, and detailed reporting.