Speed and efficiency are everything in e-commerce. For Amazon Fulfilled by Merchant (FBM) sellers, logistics can make or break success. Unlike Fulfilled by Amazon (FBA) sellers who rely on Amazon’s infrastructure, FBM sellers manage their own storage, packing, and shipping. This independence offers greater control but also brings logistical complexities that demand smart solutions.
Amazon’s shipping and delivery sales hit $27.7 billion in 2023, up 15.6% from the previous year. This rapid growth highlights the rising expectations of fast, reliable deliveries, making it essential for FBM sellers to refine their logistics strategies.
In this blog, we’ll break down how FBM sellers can improve logistics with smart order management, inventory control, and an effective Amazon fulfillment strategy to enhance shipping efficiency.
Understanding Amazon Fulfilled by Merchant
Amazon Fulfilled by Merchant (FBM) allows sellers to list products on Amazon’s marketplace while managing fulfillment independently. This approach gives businesses greater control over their logistics while still leveraging the reach of the marketplace.
This method of selling on Amazon gives sellers control over their fulfillment process while avoiding FBA fees. Many sellers prefer this approach for greater control over their operations instead of relying on FBA.
Unlike FBA, where Amazon handles storage, packing, and shipping, FBM sellers take full responsibility for these tasks. Here’s what this means:
- More Control: Sellers can manage inventory, pricing, and customer service directly.
- Lower Fees: Without Amazon’s fulfillment fees, sellers can save money on certain products.
- Greater Flexibility: Businesses can choose their preferred shipping carriers and optimize costs.
- Increased Responsibility: Since Amazon doesn’t handle fulfillment, sellers must ensure timely deliveries and maintain high performance standards.
To compete with FBA sellers, Amazon Fulfilled by Merchant businesses need a strong Amazon fulfillment strategy that ensures smooth order processing and timely deliveries. By adopting Amazon Fulfilled by Merchant, sellers can maintain greater control over their logistics while optimizing their operations for efficiency. Let’s break down how they can improve fulfillment.
How an Order Management System Improves Fulfillment
An order management system (OMS) helps sellers manage orders efficiently, whether they use Amazon FBM or rely on fulfillment by merchant services to streamline their operations. A well-implemented order management system ensures seamless inventory control and real-time order tracking. Here’s how to implement one effectively:
Step 1: Capture Orders Efficiently
Use an order management system to consolidate customer orders from multiple sales channels, including Amazon, Shopify, and eBay. This ensures all orders are processed in real-time, reducing delays and missed sales opportunities.
Step 2: Sync Inventory in Real-Time
Track inventory across different warehouses and sales channels to prevent overselling and stockouts. Setting automated alerts for low-stock levels allows you to restock on time and avoid fulfillment issues.
Step 3: Automate Order Processing
Assign orders to the most suitable warehouse based on the customer’s location to reduce shipping times. Using automated picking and packing processes improves efficiency and order accuracy.
Step 4: Integrate Shipping Solutions
Choose the best shipping carrier based on cost, delivery speed, and customer preference. Offering multiple shipping options, such as express and economy shipping, provides flexibility for different customer needs.
Step 5: Enable Tracking & Returns Management
Provide customers with real-time tracking updates to enhance their shopping experience. A smooth return process ensures quick refunds or exchanges, maintaining customer satisfaction and loyalty.
A reliable order management system reduces errors, speeds up order fulfillment, and helps FBM sellers spend less time managing logistics, making it easier to sell on Amazon. By integrating an order management system, sellers can also improve shipping accuracy and maintain customer satisfaction. Supply Chain Solutions offers tailored OMS solutions that help FBM sellers scale their operations seamlessly.
Amazon Fulfillment Strategy for Faster and Cost-Effective Shipping
A well-planned Amazon fulfillment strategy helps FBM sellers optimize shipping through Amazon, whether they opt for Amazon Fulfilled by Merchant or FBA, depending on their fulfillment method and business needs. Let’s look at different strategies and their advantages and disadvantages:
| Fulfillment Strategy | Pros | Cons |
| Self-Fulfillment | Full control, lower fees | Time-consuming, requires warehouse space |
| Third-Party Logistics (3PL) | Faster shipping, access to bulk rates | Additional costs, less control |
| Distributed Warehousing | Faster delivery, reduced shipping costs | Requires multiple warehouse locations |
| Hybrid Approach | Combines best of both worlds | Complex to manage |
Supply Chain Solutions specializes in freight and logistics services that help FBM sellers purchase shipping efficiently while implementing a strong Amazon fulfillment strategy to optimize costs and delivery times. With a comprehensive Amazon fulfillment strategy, sellers can streamline warehouse operations, reduce delays, and ensure faster deliveries to customers.
Why a Warehouse Inventory Management System Matters for FBM Sellers
A warehouse inventory management system (WIMS) is essential for seller central users looking to fulfill orders efficiently, track storage and fulfillment costs, and improve ecommerce fulfillment. Implementing a warehouse inventory management system helps businesses manage stock levels effectively and streamline logistics operations. Here’s why every FBM seller should invest in a warehouse inventory management system:
1. Prevents Overstock & Stockouts
Real-time inventory tracking helps businesses maintain optimal stock levels, preventing costly overstock situations or shortages that can disrupt order fulfillment. This system ensures products are always available when needed, reducing missed sales opportunities and improving customer satisfaction.
2. Reduces Errors
By automating stock counting and updating inventory records instantly, this system minimizes human errors. This leads to accurate order fulfillment, fewer discrepancies, and streamlined warehouse operations, reducing the need for manual inventory checks.
3. Optimizes Storage Space
An organized warehouse layout is crucial for efficiency. A warehouse inventory management system helps maximize storage utilization by categorizing products intelligently and ensuring that high-demand items are easily accessible. This improves picking and packing speeds while reducing handling errors.
4. Speeds Up Order Processing
Efficient warehouse inventory management ensures that the right products are available at the right time. By streamlining picking, packing, and shipping processes, businesses can fulfill orders faster, leading to improved customer satisfaction and fewer delays in shipping.
5. Improves Decision-Making
Access to real-time data provides valuable insights into sales trends and inventory movement. Businesses can make data-driven decisions to optimize purchasing, predict demand fluctuations, and improve supply chain efficiency, reducing excess stock and ensuring timely restocking.
Supply Chain Solutions offers warehouse inventory management system solutions that help FBM sellers maintain accuracy, reduce fulfillment errors, and enhance operational efficiency.
Take Your FBM Logistics to the Next Level
We understand that FBM sellers value control and flexibility, but managing logistics efficiently, whether through FBM, third-party fulfillment, or outsourcing, can be complex. To stay competitive, businesses need the right tools and strategies.
Implementing an order management system helps streamline the fulfillment process, reducing errors and ensuring timely deliveries. A well-structured Amazon fulfillment strategy optimizes shipping costs and enhances operational efficiency. Leveraging a warehouse inventory management system further improves inventory accuracy, prevents stockouts, and supports seamless order processing.
Supply Chain Solutions provides expert logistics services designed to help FBM sellers scale their operations efficiently. Let’s build a fulfillment strategy that helps you scale. Contact us today.
