How to choose your fulfillment model, and what are the differences.
Amazon is the world's largest e-commerce community. Intending to be "the everything store", Amazon wants to take the position of a global online supermarket, mall, and hardware store all in one.
As we might still be used to go to individual stores to get our goods, Amazon wants to remove that obstacle and head for the ultimate customer journey, making online shopping easy and accessible.
With over 350 million products and grossing 248 billion dollars in 2018, you can say that they truly are "the everything store".
Amazon has opened up in Sweden as a native market, that means that the Scandinavian e-commerce will change for the future.
In the USA almost half of all the e-commerce passes through the Amazon eco-system with over 350 million products sold by either Amazon or connected merchants.
Opening Amazon.se gives both the more experienced, but also the smaller companies a new channel to sell and promote their products.
Even though the channels have been reachable through UK, Germany and France, this is a huge step for Nordic merchants.
Fact is that Amazon has more than 2.5 million third-party vendors on their platform. Approximately 200.000 of these gross more than €100.000 per year.
The biggest portion of vendors on Amazon are a small e-commerce businesses that sell just a few products online.
There are a couple of different ways to sell on Amazon. We will clear out the main two ways of selling in this article.
Fulfilled by amazon
FBA is short for Fulfilled by Amazon. What that means is that Amazon takes care of all the logistics and orders from their platform until they are delivered to the customer's doorstep.
Fulfilled by merchant
If you already have your logistics in order, or if you have an Amazon ready 3PL partner, FBM probably is the best choice for you.
FBM is short for Fulfilled by Merchant. To succeed with FMB, the best way is if you already have your logistics in order or a 3PL partner that handles it for you. Amazon will send you the order information and then it is up to you to complete all the steps of the order to the consumer.
If you are a merchant with an attractive brand or product, or have a system and a partner that can help you fulfill your orders easily, you should probably go with FBM as this is the best way to have full control of your brand, product, and costs.
FULFILLED by ogoship
With over a decade of experience within e-commerce logistics and our unique network of warehouses, OGOship is ready to be your Amazon FBM partner.
Using OGOship as your fulfillment partner for Amazon has many benefits. It gives you the ability to handle all your logistics from one system – whether you are selling through your own e-commerce store, Amazon, or both.
Ready to learn more about FBM and how we can help you? Our experts will answer any questions you may have on how to get started and how to expand your business with Amazon FBM!