Which one make more money?


#4

There are other advantages to consider when making this decision - one such e.g. would be Buy Box eligibility. You don’t automatically get awarded this if you are FBM, but FBA changes that part of the equation.

Gail


#5

Nice thing about FBA is that you don’t have to babysit your account. You can be on the beach and most daily issues are taken care of.

However, you pay for it and it is only profitable for certain types of items. Small and inexpensive items are a bad fit for FBA unless that is your business plan to sell small items to increase your sales volume. Also, you have no control over your products anymore, and damaged product returns getting resold as new is an issue for most sellers. If you sell fragile items it may not be prudent to send them to FBA.


#6

This is a very strange question. Of course you make more money by running your business yourself. And, of course, it will require a lot more work. I check the computer every hour or two every day. I work 16, sometimes 18 hours on Mondays. I work 10 to 14 hours the other days. But, it is my business and no one tells me what to do and I don’t pay storage fees and I don’t have to worry about Amazon destroying my products before they send them to the customers. Are you lazy or are you willing to work for your success? It’s all up to you.


#7

One of the tools you may want to use is the FBA Revenue Calculator https://sellercentral.amazon.com/hz/fba/profitabilitycalculator/index?lang=en_US
This shows different costs using your fulfillment vs FBA and can help give you an idea of whether to fulfill the items yourself or through FBA.


#8

I am a relatively small business. I tried FBA and FBM. I make more FBM I can sell a item at lower price and not have storage pick and pull . I make 50 % more profit and sell more items because I can sell cheaper. Customers often look at sticker and go for cheaper.


#9

I sell FBM. I only have around 100 item on sale. I have no employee, and orders are “manageable” at the moment. Reason why I haven’t switch to FBA is the extra cost, shipping to and from warehouse, stocking fee’s and other fees related to FBA like extended stocking fee, etc; etc; Another reason for me maybe is the horror stories I read here on forum regarding FBA returns. Returns hurts your business as it is, I’d like to have full control of my business as much as I could. And deal with situation myself.
Like others have said, on,y you can answer your question. How much item do you have ?, space you have for your stocks and how much time can you give to fulfill all your order in time.

When I get orders I figure the less hands that handles my packages/item,less chances it will be damaged before it reached its destination.

You can send a couple of mid range price-small items to FBA, see how it goes, if you like it go for it, and make your decision from there.

Hope I helped, and Goodluck!


#10

I sell mostly one-off used items. I currently have 860 SKUs with about 1,200 individual items. Most of my items would require some sort of packing to be able to send off to FBA (Lets say a DVD player with an instruction manual, Remote, the player, power cord & AV cables).

I could spend 10 minutes packing it up, labeling it, and putting it in a larger box to ship to FBA. Or I could just toss it in a box and put it on the shelf. 1 minute, tops. I could take the other 9 minutes and list 2-3 more items.

DVD player sells in a month…I spend 10 minutes packing and shipping it to the buyer. I make money. But lets say I used FBA and it didn’t sell. I wasted both my time, and money.

Of course, if you go to your supplier, buy 144 packs of crayons. You open the case, list the 144 packs, toss it back in the box and ship the whole case off to FBA… then FBA is worthwhile. Then you can use the time you saved to sign up for sales tax collection in 20 or so states because now you have nexus…


#11

After three years selling mostly FBA but some FBM, I’ve come to the conclusion that they are both about the same financially. With FBM you get slightly more per item, but with FBA you sell more items.

The big plus for FBA is that Amazon handles customer service. They ship to the customer and I never have to worry about damaged or lost orders. Amazon covers all of that. In most cases Amazon even covers the loss for returns and doesn’t pass it on to me.

Because Amazon covers fulfillment I never even hear when a customer says they did not receive an item - Amazon reimburses the customer since it was a shipping problem.

But mostly I like FBA because of the freedom it gives me. It allows me to take time off any time I want because I don’t have to ship to customers every single day - that’s Amazon’s job.


#12

It’s really fairly simple - if you are selling bunches of the same inventory all the time, you’ll probably save enough in time and hassle to justify the costs of FBA. If you sell mostly unique items, have rapidly changing inventory, or have listings that may take a long time (if ever) to sell, then you’ll be better off doing it yourself.


#13

I disagree. I have over a thousand unique book titles stored at FBA, any one of which may take a year or two to sell. I would not even consider the hassle of storing, selling and shipping those books FBM.


#14

It depends on the products and the competition.

If your products are popular and have lots of sellers, then FBA can make your offer stand out, even if the price is higher than the lowest price.

If your products don’t have as much traffic and you are the only seller, then I don’t think it makes much difference in exposure.


#15

I agree with this. I’m a small 3rd party seller, I have one of a kind items. However, I have been buying beauty products in quantities. The $6 charge to store and ship for my product wouldn’t work, because it normally costs between 2.50-3.00 to ship. However, I am willing to test it through FBA.
My question is does having FBA increase your exposure MORE than if you have it in your store? That would be key. IF FBA causes your product to be viewed more and sell more then it might be worth it.
I can only see FBA being useful to a (example) video store, one that’s going out of business or has no traffic.
Any other thoughts?


#16

Without the bore of a dozen and one reasons, go FBA. In the long run, its way more profitable, easier, and less hassle altogether especially with cholic customers.

Edited by: FBA ALL THE WAY on Jul 21, 2015 9:18 PM


#17

The items I sell are fairly unique/uncommon books/CDs/DVDs and a few other items here and there, and for me to this point it just makes more sense to only do FBM. I do see the benefit of doing FBA, but it just doesn’t make as much sense for me at this point. If I were you I would look at the numbers, how much shipping costs (down to the penny), how much storage you have available, how fast your items sell and do what you feel most comfortable with.


#18

>… is it hard to send the thing out every time someone buys something from you?

If you have to ask a question like that, then it probably is too hard for you.


#19

how do you make money? what are you paying in long term storage fees? and books? how much does all that weight? … my house is a bookstore because of FBM. books are so heavy.


#20

Red Wing specified he or she has <>.

If all the books are unique, Red Wing will pay zero in long term storage fees.


#21

Storage fees are a whopping 1 to 2 cents per book per month average. You will pay that or more to heat and cool all those books month after month in your house. There are no long term storage fees on single items. It doesn’t matter what they weigh - they are in Amazon’s warehouse. One-time shipping to amazon averages about 20-25 cents per book and then I never have to touch them again. Not to mention you get your house back.

Oh, and Prime booksellers can charge more for their books.


#22

You can do both. You can have 1 fba listing and 1 fbm listing on the same asin #. I have found that I make more money on the FBM listing at a buck lower but I have many more sales charging a few bucks more on FBA. Plus you get the buy box much more easily with FBA. But it is always good to have a few on hand FBM to appeal to people who do not have prime. Amazon does charge alot for shipping if you do not have prime.


closed #23