Can choosing the right fulfilment option make or break your success on the platform?

Like many Amazon marketplace services, it can be a difficult question to answer because there’s no right answer. So it’s important to dive into a little detail to avoid surprises.

Whether you’re a new seller or a growing brand, your fulfilment strategy will impact your shipping speed, customer satisfaction, and ultimately, your bottom line.

So, what are your three main options — FBA (fulfilment by Amazon), FBM (fulfilment by Merchant), and SFP (Seller Fulfilled Prime) — to help you figure out which is the best fit for your business.

FBA (Fulfilment By Amazon)

With FBA, Amazon does all of the heavy lifting. You send your products to Amazon’s warehouses, and they handle everything from picking, packing, shipping to your customers and returns.

Pros:

• Prime eligibility: Your products become eligible for Prime’s 1- or 2-day shipping, which is a huge draw for millions of loyal Amazon Prime customers.
• Amazon handles customer service: If logistics aren’t your strength, FBA relieves you of the burden of dealing with shipping, returns, and customer queries.
• Better search rankings: FBA products tend to rank higher in search results, improving visibility.

Cons:

• Fees: Storage and fulfilment fees can add up, especially if you have slow-moving inventory.
• Less control: You relinquish control over the fulfilment process, meaning if there are issues with stock or delivery, you’re dependent on Amazon to fix them.

My 2cents:

• FBA is perfect for businesses with fast-moving inventory that want to take advantage of Amazon Prime’s vast audience while outsourcing logistics.

Fulfilment by Merchant options

Yup, it’s exactly what it sounds like — you handle the entire fulfilment process. From storing your products to packing and shipping them, it’s hard work but everything is in your control.

Pros:

• Cost control: You avoid Amazon’s storage and fulfilment fees, which can be a game-changer for businesses that already have an efficient fulfilment system in place. This depends on the cost of your fulfilment solution.
• Full autonomy: You control the entire fulfilment process, from how items are packaged to which shipping carrier is used.
• Lower fees: For businesses with lower margins, FBM helps you keep costs down and stay competitive.
• Self-promotion: I didn’t say it but, when you pack and deliver, you can insert other marketing material like deals, promos and new product samples.

Cons:

• No Prime badge: Without the Amazon Prime badge, your products may lose visibility and appeal to Prime members. As the Prime membership grows, this can account for a large percentage of your sales.
• Time-consuming: Managing fulfilment yourself can take time and resources, particularly as your order volume grows.

My 2cents:

• FBM works well for sellers with tight margins or a well-established logistics operation who are comfortable with the hands-on fulfilment process.

FBM Options in SA:

Easy Ship:

The Easy Ship programme is the predominant FBM shipping option for sellers in SA.

• Amazon’s identified courier picks up the packaged orders from the seller’s location and delivers them to the buyer’s address, for a small fee.
• This simplifies logistics for sellers, removing the need to coordinate with a third-party courier.

Self Ship:

• Sellers not eligible for Amazon Easy Ship, e.g. if you’re outside SA, you need to manage your own logistics through third-party couriers.
• You must choose and pay for a courier service that ensures delivery within Amazon’s required time frame.

My 2cents:

• Amazon Easy Ship is most convenient if you want to keep your Seller business simple.
• Self Ship gives you full control if you prefer managing your own delivery process.

SFP (Seller Fulfilled Prime):

(Once Prime is up and running in SA)

SFP is the hybrid, you fulfil orders directly from your warehouse, but your products still qualify for Amazon Prime benefits. You manage the fulfilment, but you must meet certain, strict delivery standards.

Pros:

• Prime benefits: You get access to Amazon’s Prime customers while keeping control over your fulfilment process.
• Greater flexibility: You’re not reliant on Amazon’s warehouses, but you still enjoy the sales boost that comes with the Prime badge.

Cons:

• Strict requirements: To maintain Prime status, you must consistently meet Amazon’s high-performance standards for shipping and delivery. If you fail to meet these, you risk losing your Prime status.
• Higher operational burden: Managing fulfilment yourself while meeting Prime standards can be resource-intensive.

My 2cents:

• SFP will be ideal if you want to retain control over fulfilment but still access Prime’s fast shipping and customer base — provided you can meet Amazon’s shipping criteria. But there’s no harm in being pushed to deliver good service, is there?

In a nutshell:

Each option comes with its own advantages and challenges, so it’s important to weigh these against your business model, margins, and customer expectations.

• FBA: Ideal if you want to scale quickly and outsource logistics to Amazon.
• FBM: Best if you want full control over fulfilment and already have an efficient system in place.
• SFP: Perfect if you want the best of both worlds — maintaining control over fulfilment while benefiting from the Prime badge.

Need Help Choosing the Right Option?

Your fulfilment strategy will have a significant impact on your success on Amazon. So if you’re unsure which option is right for your business? Contact us for one-on-one advice to maximise your Amazon success.