FBA vs. FBM: Advantages and disadvantages of the respective fulfillment solutions: Each of the above forms of order processing has its advantages and disadvantages. With Fulfillment by Amazon you have access to first‐class logistics solutions. Your products are easier to find on the Amazon platform. This allows you to increase sales on different markets. The products can be provided with the Amazon Prime option and are therefore delivered to customers quickly and free of charge. Amazon will also handle customer support in the local language, handle returns and answer questions about orders. With this model, a seller can also save time by only sending products to Amazon’s warehouse. Of course, the FBA service have also got disadvantages. For goods that weigh more, this solution can be less lucrative. It is therefore worthwhile to calculate the FBA costs in advance and to consider whether we should not send products to customers ourselves. Another disadvantage could be the lack of control. This also applies to returns and complaints, which are usually processed for the benefit of the customer. You can of course get the claimed product back or request the product to be destroyed, but both options come at an additional cost.
The second option of orders processing is Fulfillment by Merchant (FBM – dispatch by dealer). Amazon makes its platform available to your offers, while shipping is your responsibility. This gives the seller full control over every order. He makes returns and complaints himself. There are no additional costs associated with processing orders at Amazon. The seller gains more freedom and is not dependent on changes in the Amazon policy. This form also means less documentation. However, FBM has other obligations for the seller, e.g. B. Purchase of packaging, tapes or bubble wrap. Another disadvantage is that your products are displayed lower on the Amazon platform, so their visibility decreases.
