FBM—Fulfillment by Merchant
Amazon’s Fulfilled by Merchant option allows Amazon sellers to handle all logistics and order fulfillment themselves.
Amazon acts as the online storefront, but everything that happens after the transaction is complete is the responsibility of the seller.
When sellers choose Amazon’s Fulfilled by Merchant option, they can use self-fulfillment (the seller handles every aspect of fulfillment after the sale is complete), or they can work with a 3PL to handle fulfillment on their behalf.
Fulfilled by Merchant orders aren’t eligible for Prime but ship quickly, which is an added benefit to the customer.
This process can work for some but definitely presents challenges when it comes to balancing the day-to-day operations and scaling a business.
FBA—Fulfillment by Amazon
This is a popular approach for many Amazon sellers.
Fulfillment by Amazon (FBA) means that sellers ship their inventory (or even a portion of inventory) to Amazon’s warehouse for fulfillment.
From there, Amazon handles the fulfillment process, from picking and packing to shipping and returns.
It’s important to note that Amazon does implement various costly storage fees, so inventory management is crucial.
SFP—Seller Fulfilled Prime
Seller Fulfilled Prime works exactly how it sounds.
Sellers may display a “Prime” badge on their eCommerce store and handle the fulfillment themselves or through a Amazon seller fulfillment.
These providers offer two-day shipping and free standard shipping. Seller fulfilled Prime is fine for those testing the waters with their Amazon store, but can also be very challenging when it comes to packaging requirements and returns.
This option is also difficult to manage from a productivity perspective.
Fulfillment is a full-time job and, if not done effectively, can detract from other parts of your business, causing profit and productivity loss.
A 3PL provider is available to help Amazon sellers complete the fulfillment process.
This partnership allows sellers to focus on business growth while a trusted partner takes care of the heavy lifting related to product fulfillment.