The two reasons you should not sell via Fulfillment by Amazon (FBA), and stick to Fulfilled by Merchant (FBM)
The Great FBA Vs FBM Debate
The conversation around selling on Amazon is polarized by two sentiments:
On one hand those, who oversell the ease of setting up and running an FBA (Fulfillment by Amazon) business.
On the other, those who downplay the huge benefits of FBA.
Let’s talk about the first one: The downsides of FBA, and when you should continue to sell FBM.
Reason To Not Sell With FBA: Part One
You should not sell via Fulfillment By Amazon if you’re doing low volume
My monthly overhead just to keep the FBA (Fulfillment by Amazon) pirate ship afloat is over $700. That includes monthly subscriptions for a scanning app, FBA listing software, labels, unlimited data plan on my phone, and FBA storage fees, packing tape, boxes, an Amazon Pro-Merchant account, insurance (required by Amazon for FBA sellers), internet service, gas, and shipping costs.
If you’re debating FBA vs FBM, ask yourself: Can you turn a profit when you’re spending $700 a month on your current business?
Reason To Not Sell With FBA: Part Two
You should not sell via Fulfillment By Amazon if you can’t afford startup costs.
Starting an FBA business is going to be about $300 out of the gate. That includes a barcode scanner, label printer, app cost, labels, and more.
If you don’t have at least $300 to invest, then the FBA vs FBM debate is settled: Stick to Merchant Fulfilled.
Reason To Not Sell With FBA: Part Three
You should not sell via FBA if you’re not committed to the Amazon selling business.
For the above reasons of startup costs and monthly overhead, if you’re not 100% committed to selling on Amazon, then don’t start selling with FBA.
Here’s what you don’t want: To invest a bunch of money in a business, commit to a few monthly payments, and then bail on the business.
FBM is a fine way to test the Amazon selling waters before going all-in.
FBA vs FBM: Endnote
And that is it.
If one of those three apply, then dive in to FBA. Glorious things await you on the other side…