Getting Started with Amazon FBM

Posted on July 15, 2024 in guide

Starting a side gig with Amazon FBM (Fulfilled by Merchant) can be a lucrative way to generate extra income. Unlike Amazon FBA (Fulfilled by Amazon), where Amazon handles storage and shipping, FBM allows you to manage your inventory and fulfillment. This article will guide you through the basics of setting up and running an Amazon FBM business.

What is Amazon FBM?

Amazon FBM is a fulfillment method where sellers list their products on Amazon but handle the storage, packing, and shipping themselves. This gives sellers more control over their inventory and customer service.

Benefits of Amazon FBM

  • Control Over Inventory: You manage your own stock, which can be more cost-effective.
  • Lower Fees: FBM typically has lower fees compared to FBA.
  • Flexibility: You can sell products that might not be suitable for FBA due to size, weight, or storage requirements.

Steps to Get Started

1. Choose Your Niche and Products

Start by researching and selecting a niche that interests you. Consider products that have good demand but aren't overly saturated. Tools like Jungle Scout and Helium 10 can help you analyze market trends and competition.

2. Set Up Your Amazon Seller Account

Create an Amazon Seller account if you don’t already have one. Choose the “Individual” plan if you’re starting small or the “Professional” plan if you plan to sell more than 40 items per month.

3. Source Your Products

Find reliable suppliers for your products. You can source products from:

  • Wholesalers: Buy in bulk at discounted rates.
  • Manufacturers: For custom or private label products.
  • Local Markets: For unique or handmade items.

4. List Your Products on Amazon

Create detailed and optimized product listings. Use high-quality images and include relevant keywords in your title and description to improve your product’s visibility in search results.

5. Manage Inventory and Fulfillment

Since you’re handling fulfillment, ensure you have a reliable system for inventory management. Consider using software like ShipStation or Ordoro to streamline your order processing and shipping.

6. Provide Excellent Customer Service

Good customer service is key to success on Amazon. Respond to customer inquiries promptly, handle returns smoothly, and maintain a high seller rating.

Marketing Your Products

1. Amazon Advertising

Use Amazon’s advertising options, such as Sponsored Products and Sponsored Brands, to increase your product visibility and drive sales.

2. Social Media Marketing

Promote your products on social media platforms like Instagram, Facebook, and Pinterest to reach a broader audience.

3. Email Marketing

Build an email list and send regular updates about new products, promotions, and discounts to your subscribers.

Tips for Success

  • Start Small: Begin with a limited product range and expand as you gain experience.
  • Stay Organized: Keep detailed records of your inventory, sales, and expenses.
  • Continuously Learn: Stay updated with Amazon’s policies and e-commerce trends.

Conclusion

Starting an Amazon FBM business can be a profitable side gig with the right approach and dedication. By following the steps outlined in this guide, you can set up your business, manage your inventory, and provide excellent customer service to grow your sales. For more tips and insights on running a successful e-commerce business, visit The Remote Engineer. Happy selling!