The subscription cost as a Pro FBM Amazon seller is $39.99 per month. There is no subscription charge if you are an individual seller rather than a pro seller, but you will pay $0.99 for each unit you sell instead. In order to continue being cost-effective, you should upgrade to the Pro package if you sell more than 40 items per month. Moreover, Amazon charges a referral fee. This is because they think that they have directed clients to you because you are a merchant on their marketplace. You can Go Now and learn more about Amazon FBM fees.
A portion of your overall sales price will be used as the referral fee. This ranges from 6% to 45%, so depending on the goods you are selling, you must check ahead of time. In the majority of product categories, this is 15%. On the Amazon website, you may examine the full list of seller fees. You should also take your delivery costs into account. Keep in mind that it is your job to promptly pack orders and ship them to clients. Along with the actual packaging and shipping costs, you should account for the time you spent choosing, packing, and shipping the purchase.
What Drawbacks Exist for Amazon FBM?
Look, it would be fantastic if there were no drawbacks to becoming an Amazon Fulfilled by Merchant vendor, but there will inevitably be some drawbacks to every idea.
1. Picking, packaging, and shipping take a lot of time
Without a doubt, dealing with your own fulfillment will take up time. You must be extremely hands-on and willing to invest numerous hours per week in your Amazon business.
2. Get ready to devote more time to managing your Amazon business on a daily basis.
This might be viewed as a benefit or a drawback. On the one hand, investing time in your company is beneficial since you learn about its inner workings, which may ultimately be the secret to your success. On the other side, you can discover that you are weighed down by routine administrative work, problems with customer support, and other chores that can prevent you from expanding your Amazon business.
3. Shipping Costs May Increase
Theoretically, FBM sellers on Amazon should spend less than FBA sellers because they pick, pack, and ship their own orders. While choosing Amazon FBM may result in lower storage expenses, if you don’t get a good deal from your preferred carrier, your shipment costs could skyrocket.
4. You Are Responsible for Customer Service
You have the benefit of employing Amazon’s customer care team as an FBA seller, and they will handle any inquiries, returns, and refunds. FBM offers no such assistance. Everything will depend on you.
5. Lack of Amazon Prime eligibility
FBM vendors are regrettably ineligible for the Amazon Prime badge. Unless you are eligible for the alternative, Seller Fulfilled Prime, Prime is directly related to helping you get higher organic results, which might possibly be a huge disadvantage for you. You must apply to this program in order to participate, and while waiting lists are currently open, the current applications are closed.