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FBA vs. FBM: Fulfillment Methods in 2021

When it comes to selling on Amazon, one of the most crucial decisions that every seller has to make is choosing the fulfilment method they are going to run their business under.  If you want to make the right choice which works best for your business, you have to figure out all the scrupulous aspects referring both models. Today, in this blog, we are going to talk about both fulfillment methods separately, in order to help you understand which one is more preferable for your business.

First of all, you should keep in mind that there are lots of aspects that you as a seller have to consider, namely:

  • Whether you have space for storing your goods
  • What kind of products you are going to sell
  • How much profit you are going to have from your products
  • How much time you are ready to devote to your business
  • Whether your Amazon business is going to be your main business, or just a side hustle

Once you find answers to all these questions, you can have a clear understanding of which fulfilment method is best for your online business.

Pros of Using FBA

FBA Amazon is one of the easiest ways to run your e-commerce business. Everything is pretty simple: you find suppliers, source products from them, and send your goods directly to Amazon’s warehouses. Amazon will handle important options such as storing your goods, packaging, and further shipping. Thus, you have lots of free time to focus on other aspects of your business. Additionally, Amazon will take care of issues such as returns and refunds. But it doesn’t mean that you should not devote time to your business, since you still have to ensure that your goods come from valid suppliers, and you do not have missing items in Amazon’s warehouses.

There are no doubts about the advantages that FBA method provides Amazon sellers; however, there are also several disadvantages that you should be aware of, for example high fees.

Pros of Using FBM

One of the main advantages of Fulfillment by Merchant (FBM) is that you have more control over your business. Additionally, you will have more options in your pricing strategy by lowering them whenever you want. Additionally, you should not overpay Amazon for keeping your stock.

What About Combining Both Methods?

There are lots of Amazon sellers who are successfully operating on Amazon by combining FBA and FBM fulfilment methods. In this case you are provided with an opportunity to gain more sales on Amazon. They say “Chasing two rabbits, you won’t catch a single one.” Therefore, If you want to have positive results in your business, it is better to concentrate on one fulfilment method. We, at Jerome Basilio strictly recommend that you choose the FBA fulfilment method, since in this case you should not worry about nerve-wracking processes such as shipping, refunds, returns and many others. That’s because once you make any of these mistakes via FBM, you risk finding yourself in Amazon’s suspension zone. Believe us, there are tons of reasons why Amazon can suspend your selling privileges, among them packaging, late shipment, and many other reasons. In order to protect your business from such issues, it is better to use Fulfilment by Amazon, since in this case, you will have more time for your business development.

Why Jerome Basilio’s Team?

For many years, Jerome Basilo’s team has provided its customers with high-quality services in the e-commerce sphere. We are open to help you make the best decisions and choose the best sphere for investing your money. Additionally, we provide our clients with full guidelines on how to find reliable wholesaler suppliers with whom you can build trustworthy relationships for many years to come. Don’t hesitate to reach out to us, and put the first step toward a successful e–commerce business.





Jerome Basilio

Assisting businesses with Wholesale and Multimarket Management services is a passion of mine and that is why I formed Basilio Corporation, providing such services for 84 companies as of today. Basilio Corporation has sold a total of 52 stores for seven figures, in open digital exit broker companies. The company has partnered with Khachaturov Group, a leader in multiple industries, which has strengthened its resources. Over the years, I have used my experience to consult top players in the business, and mentored minds which became influential millionaires in the eCommerce sphere.