Selling on one of the most popular sales channels Amazon, allows you to reach a vast number of possible clients. Not to mention, that they developed a few additional services for their users. Such as Amazon FBA, which completely fulfils your order, after you sell a product on Amazon. While there is an option which eliminates most daily tasks of online sellers, should you still use merchant fulfilment? In this article, we will compare and explain the differences between Amazon FBA vs Merchant fulfilled services.
Amazon FBA is a fulfilment by Amazon method, which provides you with a warehouse and a shipping carrier. In other words, they stock your products in their warehouses, pack it before shipping and ship with their shipping carriers. Also, because they handle your order, they will perform the customer service. Overall, they take full responsibility of your Amazon order.
Pros of Amazon FBA:
- Warehouse. As mentioned before, the main difference between Amazon FBA vs Merchant fulfilled services is that you get a warehouse. Also, stocking your goods there means that Amazon is responsible for their security.
- Shipping carrier. They ship your order, which is sold on Amazon. Because of that, you do not have to print labels or check any tracking information. Amazon FBA will pack, pick and ship your products straight from a warehouse to your customer.
- Inventory management. Since Amazon can offer you their warehouse and shipping carriers, there is no need to manage any inventory. Amazon automatically notifies you about stock-levels and backorders.
- Safety and guarantees. Another benefit of Amazon among Amazon FBA vs Merchant fulfilled services is their returns system. They provide you with the insurance during a shipment. This is why, you do not have to think about the loss due to any accidents.
- Amazon prime. Choosing fulfilment by Amazon also gives you access to Amazon prime customers. In this manner, you can reach much more customers.
Cons of Amazon FBA:
- Additional fees for Amazon FBA
- Less control over shipping
- Amazon package
Merchant fulfilled orders
As you might already understand from the title Amazon FBA vs Merchant fulfilled services, the second way means independent fulfilment. Merchant fulfilled orders are also called FBM or MFN. In other words, that means owning your own warehouse and searching for a suitable shipping carrier yourself. Of course, this has its own pros, such as no additional fees for FBA. Although, you still need to calculate shipping rates and take into account warehouse upkeep.
Pros of merchant fulfilled orders:
- Branding. It's easier to improve your e-commerce branding by creating your own packaging and having direct contact with the customer. Sending from your warehouse means that you could add “thank you” cards or create other personal touches.
- Independence. As mentioned before, you are responsible for your orders. That means, that you decide how they are shipped out and delivered. In other words, if you stock them in your home, you can arrange to ship from your doorstep. Also, you see and control all shipping information.
- No FBA fees. Usually, the price for merchant fulfilled orders depends on your business size, but most likely it will be lower than Amazon FBA fees.
- Unique package. As mentioned before, Amazon FBA takes care of the parcel’s package, and use their branded packaging. By choosing to fulfill orders yourself, you decide how you want your parcel to look.
- Multiple shipping carriers. In other words, you can choose from all available shipping carriers. For example, ship different parcels with different companies. Base your decision on the best shipping rates and reviews.
Cons of Merchant fulfilled orders:
- Harder to reach Amazon prime customers
- Investment in shipping and handling
- Customer service & insurance in case of accidents
SOLVED: Managing merchant fulfilled orders
As you already know, Amazon FBA could eliminate all time-draining tasks and provide you with stocking and shipping solutions. Multiorders created a solution which helps you complete merchant fulfilled orders as easily as Amazon FBA. Our software has integrations with Amazon and all shipping carriers. In this case, the only task which is left for the online seller is to find a warehouse. As soon as you receive an order, simply click on the chosen shipping company’s logo and Multiorders will do the rest. Automatically mark your order as dispatched on all marketplaces with tracking numbers. Because of multiple shipping integrations, the system automatically adds tracking information to your Amazon account and additionally informs the customer. That way, an online seller won’t need to check and update any shipping information.