When it comes to ecommerce, there are a few fulfillment options available, tailored for different types of businesses. A number of sellers choose to have their products sold on the Amazon platform to maximize visibility and save on manpower. In 2018, nearly 70 % of Canadian ecommerce merchants used Fulfillment by Amazon (FBA) as part of their business model. Other Amazon sellers however opted to fulfill orders themselves with their own warehousing options and logistics service provider. This model is otherwise known as Fulfillment by Merchant (FBM).
No model is better than the other, but depending on what you are selling, one might be more suitable for your business. Nonetheless, regardless of the fulfillment solution you chose, your customers will expect their goods on time at the lowest costs. Indeed, Amazon made “free two-day shipping” the new normal, and consumers are increasingly less willing to wait for their deliveries. So which fulfillment method helps to keep both you and your customers satisfied?
Fulfillment by Amazon (FBA)
FBA is one of the ecommerce fulfillment models that is most used online. Two out of three Amazon sellers have their orders fulfilled by Amazon versus 34 % using FBA and FBM, and only 9 % using solely FBM. With this model, Amazon handles all steps after the order is confirmed: shipping, returns, customs clearance, and customer service. FBA offers a number of advantages, namely the possibility to sell under its Prime banner, thus significantly increasing one’s visibility on the platform and appearing at the top of search results.
Sellers are more likely to use FBA if their products are light and small, with a fast turnover, and if they require only limited warehousing space. However, FBA sellers must pay monthly fees to the platform and selling fees per order.
Fulfillment by Merchant (FBM)
FBM sellers list their products on Amazon, but they handle all aspects of order fulfillment, either themselves or through a 3PL. They are also fully responsible for processing returns and answering customer service requests. Some FBM sellers that sell larger products, need more storage space, and that have lower inventory turnover prefer this structure to FBA. Depending on your situation and product mix, this fulfillment model has the potential to save you significantly on the high storage and overall costs of the FBA model. However, it can prove to be more time-consuming if you do not partner with a good 3PL / fulfillment expert to assist with fulfilling your orders to your clients quickly and accurately.
Beyond packing and shipping orders
At Mantoria, we take Amazon’s fulfillment requirements seriously. We offer both FBA prep and logistics services as well as FBM services for shippers that prefer the personalized approach and support that we offer. We sort, palletize, label, and ship your products based on rigorous standards and quality assurance criteria. In other words, we make sure all your orders are fulfilled accurately and quickly to meet your customers’ expectations. Our fulfillment centers are equipped with a Warehouse Management System (WMS), highly-skilled logistics experts, and a large storing space for your inventory. No need to work through FBA services; the FBM model may be much better suited to your business. Our comprehensive FBM, FBA prep and logistics services include:
- freight forwarding from overseas to best Canadian Port
- drayage from the port to our fulfillment warehouse
- destuffing, palletizing, and labelling by SKU number
- inventory management and visibility
- B2C and B2B order fulfillment
- last mile delivery
- section 321 fulfillment to USA
- delivery by appointment to FBA centers across Canada
- returns management
- tailored value added services
Get a quote now for our FBA prep, logistics or FBM services. Contact us today to speak with one of our representatives to determine which approach is best for you.
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