Question 1

What is the difference between FBA and FBM?

Accepted Answer

FBA (Fulfillment by Amazon) involves Amazon handling storage, packaging, and shipping of products, while FBM (Fulfillment by Merchant) means the seller manages these processes. Each has different cost structures and benefits, impacting your business strategy.

Question 2

How do Amazon's new fees affect sellers?

Accepted Answer

Amazon's new fees, including a 3.5% surcharge and category-specific rate changes, increase the cost of using FBA. Sellers must reassess their fulfillment strategies to maintain profitability, considering these changes in their cost calculations.

Question 3

Why is choosing between FBA and FBM a math decision?

Accepted Answer

The choice between FBA and FBM hinges on cost analysis rather than preference. Sellers must calculate the total costs, including new surcharges and rate changes, to determine which method best preserves their margins and aligns with their business goals.