Why Switching from Amazon FBA to FBM Hurts Your Sales

My Amazon Guy

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In this video, we discuss the significant impact of switching from Fulfillment by Amazon (FBA) to Fulfillment by Merchant (FBM) and how it can drastically hurt your sales. Learn why conducting a margin analysis is essential and why sales should be prioritized over marginal savings. Here are some effective strategies to push back on client decisions and understand the logistics issues that can lead to productivity loss. This session is packed with insights to help Amazon sellers make informed decisions about their fulfillment strategies.
Brand Manager Takeaway:
I had my call with Steven Pope yesterday, and we quickly identified the disadvantage to my largest client of switching to FBM compared to being on FBA, regardless of the higher fees generated on their bulky items.
Things to keep in mind when a client is considering switching from FBA to FBM:
Do a Fulfillment Margin Analysis on our side for our client to decide based on data and not on assumptions, considering all the operational costs of shipping 200+ orders per day.
Even if they are the ones to suggest this change, we must have the requirement in writing or on video to protect ourselves in case sales are impacted, which they surely will be.
Steven Pope also asked me what motivates me to come to work at MAG every day:
The challenge that MAG presents to me every day.
The knowledge and the speed at which is acquired.
The possibility of teaching and transmitting what we learn.
It's always exciting to chat with you Steven Pope, Thanks!
#AmazonFBA #AmazonFBM #AmazonSales #AmazonTips
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Timestamps:
00:00 - Impact of Switching from FBA to FBM
01:00 - Running a Margin Analysis
01:59 - Importance of Sales over Margin
02:31 - Pushing Back on Client Decisions
03:31 - Logistics Issues and Client Productivity Loss
04:06 - Outro

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