What should I pay attention to when doing Amazon FBM under the new policy of Amazon FBA?

Last week, Amazon successively heard news of the adjustment of FBA business policies in the United States, Italy, and France. Basically, non-FBA essential products were either not stored in the warehouse, or they were not allowed to place orders, or the FBA delivery time was delayed by a month, which exploded the sellers Sadness is bleak.

And with the spread of the epidemic, everyone is more worried that other sites will also take the same or even stricter measures. By then, the sellers will face even more severe challenges.

Today, Amazon issued another announcement, announcing that the removal operation of some operation centers will be temporarily suspended, so sellers face the situation that the removal order is delayed or even cancelled. The relevant announcements are as follows:

Using Amazon FBA, although can obtain a series of benefits, including saving manpower, material and financial resources, and obtaining the prime logo, but also have to face some problems.

For example, the cost is too high, the inventory is wrong due to the wrong selection, and the related effects of Amazon’s FBA policy adjustment (this emergency FBA warehouse closure incident is a painful experience). As a result, some sellers are turning to Amazon FBM instead.

In fact, before the epidemic, we also found FBM teams in some CU seller accounts, and the platform has always allowed sellers to self-deliver. So, what are the advantages and disadvantages of FBM? Is your business suitable for Amazon FBM? What are the points to pay special attention to?

What are the advantages of Amazon FBM?

Gain more control

The inventory for FBM is in their own hands (even at the supplier), and the seller can control the inventory risk, handle the return on its own, and provide customers with services directly.

Reduce funding pressure

Large-volume retailers can get preferential discounts, can also reduce the cost of pressing goods, and speed up the capital turnover rate. In addition, you can avoid unavoidable losses caused by changes in Amazon’s pricing or policy adjustments.

Let packaging “flower everywhere”  

By using FBM, sellers can ensure the applicable product packaging, thereby greatly reducing consumer returns due to product damage. At the same time, by packaging products with brands and embedding marketing materials in the packaging, marketing opportunities can be improved.

Unified inventory is more convenient

For example, if you sell products between multiple markets and platforms, FBM is more advantageous.

Improve customer experience

Using Amazon FBM, sellers can also add a personal thank-you note to consumers in the package to increase customer favorability and promote the generation of positive reviews and customer repurchase rates.

What are the precautions for FBM

If you want to temporarily switch to FBM, first check whether your performance indicators meet the requirements. Failure of one or more of the following items may cause the listing to be reviewed or the store to be frozen. Therefore, sellers must pay attention to the details.

First, let’s find out what are Amazon’s assessment indicators for FBM sellers?

Indicator 1: Late order rate

The late delivery rate refers to the proportion of orders that have not been confirmed for delivery before the expected delivery date in the FBM order in the same period. The late delivery rate should be less than 4%.

Tips: It is now during the epidemic period that various logistics problems can easily lead to delays in sellers who choose Amazon FBM.

In this regard, if you are a seller in Europe, you can consider using Amazon “Buy and Ship” service. Sellers using “Buy and Ship” can enjoy negative buyer feedback policies. Sellers are only responsible for delivering goods on time and will not affect seller performance indicators due to delayed delivery caused by uncontrollable factors of the seller.

Indicator 2: Effective tracking rate of orders

Order effective tracking rate refers to the proportion of orders that sellers can provide valid tracking codes and can query tracking information on Amazon website to all FBM orders during the statistical period. It should be no less than 95%.

Tips: This is very simple, that is, you must be able to find logistics information on the Amazon platform. Therefore, when choosing a FBM logistics channel and logistics provider, you must choose one approved by the Amazon platform. When filling in the logistics tracking number on the Amazon platform, you must set up the corresponding logistics provider and the correct logistics tracking number.

Indicator 3: Cancellation rate before delivery

The cancellation rate before delivery refers to the proportion of the number of orders cancelled by the seller before the delivery is confirmed to all the FBM orders in the period. Taking the United States as an example, the cancellation rate before shipping should be less than 2.5%.

Tips: What about this? It seems that we can only communicate with the buyer in time after the order is generated and ship in time.

As an Amazon, being able to communicate with buyers the first time is really important. However, there are many sellers of European stations, which operate multiple sites, often encounter situations where they cannot respond to buyer information in a timely manner, which leads to bad reviews. At this time, proper use of third-party operating tools may make you a lot easier.