Countries
Read only
Start FBA or FBM
I am a new seller and am wondering, is it better to start FBM to test the water before buying a large quantities or FBA ?
23 replies
Seller_pfYwIGwdlQFnW
RUN!!!!! DONT INVEST IN THIS PLATFORM
KJ_Amazon
Hello @Seller_9327LP5wcz9La. Thanks for that interesting question. There are lots of sellers here who use FBA or FBM, or even both, and I'm sure they'd be happy to offer advice.
It may help if you can give some more details about your plans, if you're comfortable. What kinds of products are you looking to sell, etc.
Our Seller University video "Sell in the Amazon store: 30-minute overview for beginners" has sections on both options if that helps.
Seller_nRFmxiQg4EGrw
There is no 100% clear cut answer, but the fact that you are asking it would point to your proposal likely being the best way to proceed. Go with FBM until you are sure that your product will actually sell; too many people send way too much product to FBA only to find that there are no customers for it.
Once you know that there is a demand, then slowly switch over to FBA if you like. Note that you can do both; it's not "all or nothing". FBA will generally result in higher sales, due to Buy Box and customers wanting only Prime, but it will also cost you more. If you've done a bit of FBM first, you'll have something to compare to in order to decide if the fees are worth it.
Welcome Aboard! And be sure to read through these forums to learn so you can avoid common mistakes, and feel free to ask about anything you are unclear on.
Seller_tAfXR7sVBEoZS
@Seller_pfYwIGwdlQFnWhas good advice. Do not expect Amazon to support you or have a fair marketplace, or even follow its own rules. Spend a lot of time reading on the forum about FBA and FBM.
The big problem with FBA is that you will likely have to sell your prices below a profit margin to build up sales. FBA has lower sales, especially for a new seller. However, profits are higher and I am moving almost all my products to FBM.
Your biggest concern should be where you are going to source your products and what products you are going to sell. Many products are gated. Other's have fierce competition and the prices are driven below your cost because people jump into Amazon and then get stuck with product they have to dump to recoup their funds.
Are you selling your own product or something from another manufacturer. If it is your product, consider brand registry. If it is someone else's product, make sure you have brand authorization.
This place is a mine field and there are many pitfalls. Start small and figure out what works and what has high profit. You need to not factor in high enough profit to cover all your costs, purchase price, shipping, long-term storage (expect some), and returns (expect a lot of shady customers).
Read the forum for people posting about the products you plan to sell to see what pitfalls they run into.
Good luck.
Seller_NxQTyL4zOqAYv
There are many pitfalls and stumbling blocks to amazon. they have many rules and unfortunately most of them are enforced by bots with zero common sense. I highly suggest doing FBM, not only starting out but always.
Starting out though, it is highly likely you will run afoul of at least one of Amazon's 8 gazillion policies. When you do they will suspend you and make you jump through hoops for weeks if not months, assuming that they will ever reinstate your account. If you are doing FBA when this happens, they not only hold your money, they hold your inventory. You may never get either back depending on the reason. if you are selling FBM at least you will still have your inventory and the ability to sell it elsewhere to have some cash flow while Amazon is twiddling it's thumbs with your livelihood.
Unlike others, I wouldn't say don't sell here. I'd say don't put all your eggs in the Amazon basket and if you have not done online sales before you may want to earn your chops on one of the friendlier and easeir to navigate venues.
Seller_3qBwLyoeF7VxN
this is must to know about company, on high demand
Seller_vFSqNGJcIdSbD
FBM- You have full control of your business. Once it grows to a level you can't handle then its time for FBA
Seller_yYmMTCwJZOpvV
fbm unless you like getting defects from amazon screwing up and giving you the defects...
have a friend as we speak suspended bc amazon over counted his products multiple times but when sold they were short he got dinged twice and now verge of suspension.
Seller_xqQN9iSG2aGJn
I will try to give you the Pros & cons for both. We do both and they have defintinite advantages/disadvantages:
Selling 24/7: FBA is the winner. You ship in the product and AMZ does the rest. You can go on vacation, etc. and all is well as long as you have inventory in the system.
Control of Inventory: FBM is the winner. You can immediately add/reduce inventory in real time.
Returns: FBM you can challenge questionable returns. My experience with FBA is that you will eat it but AMZ does all of the work.
Shipping Costs : for us FBA is the winner. The AMZ fulfillment fee is much less than if we shipped FBM. The only time FBM is an advantage is if the buyer is local and/or they buy multiple items. Also with FBA, the customer gets the product within 2 days. Nobody wants to wait a week anymore.
Similar Discussions
