Utilizing Amazon FBM (Fulfillment By Merchant) as a Competitive Advantage
September 2, 2020
As a seller, navigating and positioning your brand within Amazon’s competitive marketplace poses a variety of difficult challenges. Adding the complexities associated with determining the right fulfillment method for your brand is one such challenge. Amazon offers sellers two fulfillment processes: Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM).
Fulfillment by Amazon (FBA) allows sellers to utilize Amazon’s fulfillment network to store, package and ship customer orders. This full-service application minimizes sellers’ logistical involvement, but comes with a cost that eats away at profit margin.
Fulfillment by Merchant (FBM) offers a different solution. FBM allows sellers to autonomously control fulfillment when shipping orders to consumers. Using this model, sellers are not reliant on Amazon for storage, packaging and shipping needs. Beyond being able to control shipping, returns and customer service, sellers may choose to utilize FBM to increase profit margin, utilize storage space (without incurring additional fees through Amazon), and/or for products that sell less frequently.
Partnering With ZQUARED
As a top Amazon seller, ZQUARED has the ability to utilize FBM and still receive the “Amazon Prime” badge on the product listing. This option provides ZQUARED Brand Partners with a competitive advantage as other FBM offers may not be eligible for Amazon Prime delivery. Additionally, our products are stored, packaged and shipped directly from our warehouse, which can save on fees associated with FBA.
Being an FBM facility also allows us to offer products that may be FBA-ineligible, such as hazmat products, unique products, and products with tight margins.
When ZQUARED receives an FBM order, we package the product in our warehouse and ship it directly to the customer via UPS Ground, USPS, FedEx Ground, or FedEx Express within 24 hours post-purchase.
ZQUARED also uses a network of 3PL (third-party logistics) providers to quickly scale when demand increases rapidly.
The ZQUARED Advantage
When utilizing FBA, sellers are exposed to liabilities. Amazon may deactivate FBA listings, place inventory on hold, or trigger a number of other unexpected issues. These issues often result in listing deactivation that can last for days or even weeks, causing an incredible loss of sales.
In general, most sellers are limited to choosing only one fulfillment option – either FBA or FMB – if they have the capabilities required for facilitating FBM. Partnering with ZQUARED allows brands to use both fulfillment methods. If, for any reason, Amazon FBA is not available, ZQUARED’s FBM capabilities allow us to ramp up order processing and shipping. This advantage ensures that we have a “Prime Eligible” offer on nearly every listing, meeting the “Seller-Fulfilled Prime” status criteria of in-home delivery within two days.
The ability to store products, package products and process and ship orders protects our Brand Partners’ listings. The FBM model helps minimize the loss of sales in the event of an FBA disruption, as we seamlessly continue our fulfillment processes without Amazon’s involvement.
About ZQUARED
Our company was born from a service mindset. Our passion is helping you navigate the online retail space in a way never before imagined. With years of industry-leading experience selling on Amazon, our team’s primary goal is helping you achieve success. We have solutions for managing all aspects of the Amazon platform: design, fulfillment, product listings, enhanced brand content, headline and sponsored ads, MAP violations, and even social media marketing. Though understanding all aspects of this sales channel can be overwhelming, we break down every aspect of your brand and what you will need to increase sales on Amazon.
For more information on how ZQUARED can help grow your Amazon business through advertising strategies and listing optimization, contact ZQUARED at 234-ZQUARED (978-2733) or email partners@zquared.com.