Many entrepreneurs and small business owners prefer using Amazon because of its wide customer base. However, success on the platform depends on more than listing...
Many entrepreneurs and small business owners prefer using Amazon because of its wide customer base. However, success on the platform depends on more than listing products and attracting orders.
As a seller, you must ensure that your customers get their orders in time and any issues that crop up are handled promptly. As a result, choosing the right fulfillment strategy is therefore an important part of running a profitable Amazon business.
One option available for sellers is Fulfillment by Merchant (FBM). In this guide, we will explain the factors to consider when choosing Amazon FBM fulfillment service providers.
Evaluate the Provider’s Range of Services
Amazon FBM fulfillment service providers offer various services, ranging from storage and inventory tracking to handling returns.
However, as a business owner, the first thing you must do is to identify which fulfillment activities you need help with. Some sellers only need help with warehousing and storage. Others may want help with everything from inventory management to returns processing.
So, before you approach Amazon FBM fulfillment service firms, create a list of your current operational challenges.
Compare the Total Cost of Amazon FBM Fulfillment Services
The goal of partnering with a company such as Packageman for Amazon FBM fulfillment services is to reduce operational costs.
However, this will only be possible if you find a partner, or 3PL company, that provides value for your money. In this case, we don’t mean going for the cheapest option available so that you can save funds.
Instead, ask for a detailed price quote. This will give you an in-depth picture of how much every service costs. You can also use the figure to estimate how much it costs to ship one order by dividing the total monthly fulfillment cost by the number of orders you receive per month.
Assess Shipping Speed and Reliability of Amazon FBM Fulfillment Services
Amazon is a very competitive platform, and even the slightest mistake, such as a delivery that is a day late, can harm your store.
When evaluating a fulfillment provider, ask about its dispatch schedules, carrier network, tracking procedures, and ability to handle urgent orders. Don’t assume that the fulfillment company’s advertised delivery estimate represents a guaranteed result.
If possible, ask for historical performance data and confirm whether the figures cover comparable products, destinations, and shipping services.
Check Amazon Integration and Automation
Using manual systems and workflows to track your inventory and daily orders can only work for small startups that receive a handful of orders per month.
A good Amazon FBM fulfillment service should integrate with your workflow or provide a reliable method for transferring orders and shipment data. For example, the system should support real-time or frequent inventory synchronization.
Ask whether stock updates are immediate or periodic. Also, if you sell on multiple platforms, verify that the solution supports all relevant channels without creating conflicting inventory records.
Consider Scalability and Seasonal Demand
A fulfillment service that works well for 500 monthly orders may struggle when volume increases to 1,500 orders or more. Before choosing an Amazon FBM fulfillment provider, discuss how they handle sales peaks, new product launches, and sudden increases in demand.
The provider should explain its available capacity and how it plans for exceptional demand. You, on the other hand, should also consider contingency arrangements in case a carrier becomes unavailable.