If you are selling on Amazon Europe you can decide between two different possibilities of warehousing and despatch of your products: FBA (Fulfilment by Amazon) or FBM (Fulfilment by Merchant). Choosing FBA, Amazon makes storerooms within Europe, the logistics, the despatch and the customer service available for you – of course for payment.
FBM – Fulfilment by Merchant – means that it is your job to deal with storing, logistics, despatch and customers service. Both kinds of fulfilment have its benefits but in short: FBA is usually better for sellers with a high volume in sales because they profit more from the economy of scale of a big sales quantity and FBM is more for seller with lower sales figures. Fulfilment by Merchant is recommended for people who sell unique items, custom-made or niche products. Using FBM, sellers have more control about the storing of their products and they do not have to pay the fees FBA-sellers have to pay. However, they cannot profit from the logistic resources of Amazon and in contrast to the products of FBA-sellers, the products of FBM-sellers are always listed after Amazon’s products. Consequently, the visibility and so the whole online performance on Amazon is restricted. In most cases sellers of unique items or niche items have almost no competition and if Amazon itself has no comparable product there is not disadvantage for the seller at all.