The Essential Guide: Leveraging Amazon's Fulfillment by Merchant Program for Brand Success

In the ever-expanding landscape of e-commerce, Amazon stands tall as a juggernaut, offering unparalleled reach and access to millions of potential customers worldwide. For brands looking to establish a formidable presence on this platform, utilizing Amazon's Fulfillment by Merchant (FBM) program is not just an option – it's a strategic imperative. In this blog post, we'll delve into the importance of leveraging Amazon's FBM program for brands and explore the myriad benefits it offers.

What is Amazon's Fulfillment by Merchant Program?

First, let's clarify what Amazon's Fulfillment by Merchant program entails. This is not like FBA, where Amazon does it all and charges a lot for those services. FBM puts the onus of fulfillment squarely on the shoulders of the seller (or merchant) or via your fulfillment partner.  Verde has dozens of clients using FBM successfully from our facilities.  All storage, inventory sync, order processing, and tracking integrate seamlessly into the Amazon system from our WMS. 

Why is FBM Important for Brands?

1. Control Over The Brand Experience: With FBM, brands retain full control over the entire customer experience, from when an order is placed to its delivery at the customer's doorstep. This control extends to packaging, branding, and inserts, allowing brands to create a cohesive and memorable brand experience that fosters customer loyalty.

2. Flexibility and Customization: FBM offers unparalleled flexibility and customization options, enabling brands to tailor their fulfillment processes to suit their unique requirements and preferences. Whether it's implementing specialized packaging, offering branded inserts, or providing personalized customer service, brands have the freedom to differentiate themselves and stand out in a crowded marketplace.

3. Cost Savings: While FBA provides convenience and scalability, it comes at a cost – both in terms of fulfillment fees and storage fees. By opting for FBM, brands can potentially save on fulfillment fees and retain higher margins on their products. This can be especially advantageous for brands with high-margin products or unique fulfillment needs.

4. Faster Inventory Turnover: With FBM, brands have greater visibility and control over their inventory levels, allowing them to optimize their stock levels and achieve faster inventory turnover. By leveraging data analytics and inventory management tools, brands can minimize stockouts, reduce excess inventory, and ensure a steady supply of products to meet customer demand.

5. Direct Customer Engagement: Perhaps most importantly, FBM enables brands to establish direct customer relationships. By handling everything with your fulfillment partner, brands can engage with customers directly, gather feedback, and build rapport. This direct line of communication can be invaluable for gaining insights into customer preferences, addressing concerns, and fostering brand loyalty.

Leveraging Amazon's Fulfillment by Merchant (FBM) program is essential for brands looking to thrive in the competitive e-commerce landscape. By embracing FBM, brands can maintain control over their brand experience, customize their fulfillment processes, and build direct relationships with customers – all while potentially saving on costs and achieving greater flexibility and agility.

Verde Fulfillment USA has six locations across the USA in 11 fulfillment centers.  We help hundreds of brands with their direct-to-consumer orders, B2B retail orders, and large distribution center orders to some of the largest retailers in the country.  If you would like to learn more about our capabilities and how we can help your brand grow, reach out to us.  We’re always happy to help!  Click Here