How Amazon FBM Can Protect Your Business During Unexpected Crises

The COVID-19 pandemic drastically disrupted industries across the globe, and Amazon sellers were no exception. During this unprecedented time, many Amazon businesses faced challenges that shook their operations. However, Fulfillment by Merchant (FBM) emerged as a vital solution that helped thousands of sellers weather the storm.

In this post, we’ll explore how the FBM model helped Amazon sellers survive the pandemic and how it can safeguard your business in times of crisis.

The Impact of COVID-19 on Amazon Sellers

When the pandemic hit in 2020, global lockdowns pushed consumers toward online shopping in unprecedented numbers. As Amazon’s sales skyrocketed, competition among sellers became fierce. However, despite the rise in demand, many sellers struggled due to shifting marketplace policies and logistics issues.

Amazon FBA sellers, in particular, were heavily impacted. With Amazon prioritizing essential goods, non-essential items faced stocking limitations in fulfillment centers. Sellers relying on FBA suddenly found their operations at risk, resulting in lost sales and disrupted inventory management.

Why FBM Was a Lifeline for Sellers During the Pandemic

The Fulfillment by Merchant (FBM) model allowed sellers to regain control over their operations during the pandemic. By managing their shipping, inventory, and customer service, sellers who switched to FBM could avoid the restrictions placed on FBA shipments.

FBM provided sellers the flexibility to continue fulfilling orders for non-essential goods, even when Amazon’s warehouses were overwhelmed with demand for essential items. This model not only allowed sellers to keep their businesses running but also minimized disruptions during times of crisis.

Understanding the FBM Model: A Closer Look

With FBM, sellers are responsible for storing, packing, and shipping products directly to customers. Unlike FBA, where Amazon oversees fulfillment, FBM allows sellers to maintain complete control over their inventory management and shipping operations. This model offers both benefits and challenges for sellers.

Pros of Amazon FBM:

• Full control over shipping: Choose your delivery partners and negotiate shipping costs.
• Avoid inventory restrictions: FBM allows you to ship products that may be restricted under FBA.
• Lower fees: FBM sellers can save on fulfillment fees by handling logistics in-house.
• No dependence on Amazon warehouses: Your operations won’t be halted by Amazon’s inventory limits or policy changes.

Cons of Amazon FBM:

• No Prime benefits: FBM sellers don’t get the “Prime” badge, which could deter Prime members.
• More work for sellers: You’ll need to manage customer service, returns, and shipping logistics yourself.
• Buy Box competition: FBA sellers tend to have a better chance of winning the Buy Box, so FBM sellers may need to work harder to compete.

FBM vs. FBA: Which Is Better During a Crisis?

While FBA offers convenience, FBM has proven to be more resilient during unexpected crises. According to a report from JungleScout, over 40% of Amazon sellers switched from FBA to FBM during the COVID-19 pandemic. FBM allowed sellers to maintain control over their supply chain and adapt to rapidly changing conditions.

Here are some examples of how FBM can help your Amazon business during different types of crises:

• Operational Crises: If Amazon changes its policies or restricts items in FBA warehouses, FBM sellers can continue shipping without disruption.
• Personnel Issues: Managing your storage and shipping reduces risks of theft or delays caused by warehouse mismanagement.
• Natural Disasters: FBM sellers don’t have to worry about limited inventory in fulfillment centers due to natural disasters.
• Financial Crises: With FBM, you can control shipping costs and avoid high FBA fees during economic downturns.

Why Combining FBA and FBM Is the Smart Move

Rather than relying on just one fulfillment method, many successful Amazon sellers use a hybrid model. By combining FBA and FBM, you can leverage the advantages of both methods. This strategy allows you to enjoy the efficiency of FBA while retaining the flexibility of FBM during crises.

During normal times, FBA may be your preferred option, but having FBM as a backup can help safeguard your business from unforeseen challenges.

Final Thoughts: How FBM Can Help You Thrive in Any Crisis

The ability to adapt is crucial for Amazon sellers, especially in times of crisis. By integrating FBM into your business model, you can ensure that your operations remain resilient, regardless of what challenges arise.

While FBM may require more hands-on management, the control it provides over shipping, inventory, and customer service can make all the difference when disaster strikes. Whether it’s a global pandemic or a natural disaster, FBM can serve as your safety net.

Call to Action: Thrive on Amazon With Pro Seller Marketing

Not sure if FBM is the best choice for your Amazon business? At Pro Seller Marketing, we specialize in helping Amazon store owners optimize their fulfillment strategies to withstand any crisis. Whether you need expert guidance on managing FBM, FBA, or a combination of both, our team is here to help.

Take the next step in securing your Amazon store’s future—book a consultation with our team today and let us help you navigate the complexities of Amazon’s fulfillment models. With our expertise, we’ll help your business succeed, no matter the obstacles you face.