How FBM Account May Reduce the Covid 19 Effects to Your Business.

March 30, 2020
Written by Ken Zhou
Amazon FBM

The majority of consumers worldwide are now forced to stay home due to lockdowns, which is one of the COVID 19 effects. Hence, shopping online has become the current norm. This adverse result has led Amazon sales to spike which led to bigger competition among sellers that's why good Amazon product optimization is a must.  

However, due to the pressing need for medical supplies and household products, the retail giant has released a moratorium. It detailed the barring of non-essential goods from being stocked in FBA warehouses from March 17 until April 5.

If you are an FBA account holder whose brand does not carry medical or household goods, this mandate can dent your sales. But all is not lost. If you switch to an FBM account, you may succeed in dodging the dreaded COVID 19 impact on your business and why there's a need for the assistance of Amazon marketplace protection service.

About Becoming an FBM Seller

As Fulfilled by Merchant (FBM) seller, you take full responsibility for storing and shipping your products. You do all these sans, an Amazon Prime badge. During pressing times, having an FBM account can help your business stay afloat despite lower profit margins. You may also find it beneficial if your line-up does not carry a large number of products.

To better understand how an FBM account can work for you, go over its advantages and disadvantages detailed below.

Pros

  • You may reduce shipping charges because you get to choose your delivery partners and network.              
  • You have more control over your shipping costs and inventories.               
  • It does not require you to undergo a 300-order trial phase required in SFP.              
  • You have a chance to avoid probable losses resulting from any changes in Amazon's policies.               
  • You do not have to deal with much paperwork, so you can concentrate more on your time and attention in managing your business.     

Cons

  • You get fewer chances of winning the "Buy Box," especially if you have lots of competitors.               
  • Your customers cannot take advantage of Amazon Prime privileges.               
  • You miss out on the chance to capture the interest of Prime members who either shop from SFP sellers only or are not comfortable with shouldering additional shipping costs.     

In a Nutshell

Switching to an FBM account maybe your business's saving grace from the negative COVID 19 results on online retailing. But like every other option, it has its drawbacks too. Before you decide to make the switch, contemplate the consequences first. Analyze your business's inventory and sales reports thoroughly.

To help you better see the bigger picture without losing sight of the nitty-gritty, consult with a certified account manager specializing in Amazon. With his expertise, you do not only get a realistic view of the consequences. But you also get to have a more comprehensive understanding of your current situation.

Depending on circumstances, the account manager may advise you to switch to an SFP account instead. Either way, working with an Amazon account expert will always benefit your business. His expertise will guide you to make intelligent decisions that will help your business flourish.

Not yet connected to an account manager? Do not miss out on the benefits of working with an Amazon specialist. Enquire with us by emailing Jayce at [email protected] now.

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