Sunday, December 22, 2024

FBA vs FBM: Which Amazon Fulfillment Method is Best for Q4 Success?

Here is the Table of Contents and the Article with the heading of the second part bolded using Markdown language:

Table of Contents:

1. Introduction to FBA and FBM

2. **Pros and Cons of FBA**

3. **Pros and Cons of FBM**

4. How to Identify FBM-Friendly Products

5. FBM Tips and Strategies

6. Seasonal Opportunities with FBM

7. Conclusion

**Pros and Cons of FBM**

The big pro of FBM is that you can test products much faster as well as replenish them more quickly. This results in a much better cash flow cycle. With FBM, you can test just one to a few units, which helps reduce risk and not allocate as much capital when testing new products.

Another pro of FBM is that certain items can be more profitable when sold through FBM compared to FBA. I’ll show you some examples of this later on. The cons of FBM are that it takes a lot more time to fulfill orders, and it’s much harder to get the buy box year-round because Amazon incentivizes FBA sellers due to the better customer experience and higher fees they generate.

However, during the Q4 holiday season, FBM can actually become a huge advantage. As FBA fulfillment times slow down and FBA inventory dries up, the buy box often goes to FBM sellers who can list and ship products immediately. This creates tons of FBM opportunity, especially in the weeks leading up to and after Black Friday and Cyber Monday.

In December, everything pretty much becomes FBM-friendly, and the big money is going to be made by quickly replenishing FBM items and scaling them to the moon. 🚀