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FBA vs. FBM

by Seller_Cs7aglCqKocf5

I've been reading a lot on the forums that people are recommending FBM over FBA because of the fees and you have more control. Our products are unique -- we are the only seller. When we send an item to FBA, it performs MUCH better than FBM -- around 15x better. I'm trying to understand what I'm missing here when people are saying FBM is better.

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Seller_OvL8C4BJWiuS9
In reply to: Seller_Cs7aglCqKocf5's post

One of the main reasons is the control. Also, the fees that some people post about are insane.

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Seller_Sram36TnVt73c
In reply to: Seller_Cs7aglCqKocf5's post

while fees are much lower than FBA, FBM items don't sell.

I had to pull many items from FBA because the latest fee updates made some products unprofitable for FBA (i.e., oversize items).

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Seller_z3XfkorVSmnEY
In reply to: Seller_Cs7aglCqKocf5's post

It all depends on what you're selling. Some items are more likely to accrue larger FBA fees -- those packaged without a rigid box, slow sellers, and brand new items (that turn into slower than expected sellers).

And as @Seller_OvL8C4BJWiuS9 mentioned, a lot of it is about control. Some sellers feel the need to control the whole process. But FBA really doesn't let you do that. It's never meant to.

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Seller_nRFmxiQg4EGrw
In reply to: Seller_Cs7aglCqKocf5's post

What you're missing is the fact that many people assume that what is best for them is best for everyone.

They are wrong.

If your increase in volume more than covers the increased costs (sounds like it does), then FBA is better for YOUR business; and that's all that matters.

Some people get hung up on things like what percentage Amazon is taking; forgetting that the important thing is the PROFIT you make on the bottom line.

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Seller_CowjH9nK07CXh
In reply to: Seller_Cs7aglCqKocf5's post

yes. i also saw some people are recommending FBM. it's wrong. by the way. if you are a beginner. i dont recommend choosing FBM. because this will lead to your items don't sell

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Seller_TZKEXpYtDA1xL
In reply to: Seller_Cs7aglCqKocf5's post

I sell 99.9% of my items FBA, but there are numerous good reasons to sell FBM. The biggest one is that if a customer makes a counterfeit claim against a product you sell, Amazon will quickly deactivate your account and ask questions later. If you can't adequately disprove the claim, Amazon will keep ALL of your inventory, even unrelated ASINs.

Also, not only do you have the usual FBA fees, but you have Placement Fees now, Low Inventory Fees, and Storage Fees which grow for each passing month you don't sell them. Add all those up and profitable items may sell faster, but they're no longer profitable.

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Seller_vDG7QDJBbVfxD
In reply to: Seller_Cs7aglCqKocf5's post

I do FBM solely because my items sells for $4 and it would not be profitable to ship using FBA.

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Seller_DTlU4E3YncmVe
In reply to: Seller_Cs7aglCqKocf5's post

Consider the following benefits of utilizing FBM (Fulfillment by Merchant) for your business:

  1. Manage your inventory directly.
  2. Conveniently operate multiple stores across different platforms.
  3. Avoid having your inventory held hostage if supply chain verification is needed.
  4. Establish a rapport with shipping services like UPS or USPS, leading to better shipping rates.
  5. Build business credit more easily with other enterprises.
  6. With a Shopify store, you can handle local deliveries yourself.

While FBM offers numerous advantages, the main downside is the need for physical space to store inventory. Nonetheless, this cost can often be lower than the fees associated with shipping and storing items in Amazon warehouses.

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Seller_JCqbXUeHNoJiE
In reply to: Seller_Cs7aglCqKocf5's post

I'd Say ...... Consider yourself fortunate that you have not lost large quantites of your items in transit to FBA. Congrats

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Seller_hCwjn5kfXP476
In reply to: Seller_Cs7aglCqKocf5's post

I have been FBM for 15 years, I want complete control of my inventory, shipping, returns. I list on 3 marketplaces with little administration. Use Amz shipping and shipstation. I have been seeing 10-15% growth in sales yoy.

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