• FBA vs MFN: Which Fulfillment Option is Better for Amazon Sellers


    FBA vs MFN: Which Fulfillment Option is Better for Amazon Sellers

    Amazon is a global online selling platform that has since become a household name to name. The American e-commerce store has gained global influence and notoriety since it’s inception 22 years ago in 1994. Amazon is the worlds largest online retailers selling everything you can imagine, apart from livestock. In the beginning one could only buy books from Amazon, now you easily source Korean beauty products and kitchen appliances at the best prices through Amazon. 

    Amazon has already approximately had 2.6 billion visits to it’s website. It’s no wonder that why they attract sellers and vendors to their great platform. They also offer unique shipping methods their competing e-commerce superstore counterparts don’t. Studies have revealed that 44% of America’s population is at least 20 miles away of an Amazon warehouse or delivery station. 

    Amazon has a unique and highly efficient delivery infrastructure that includes over180 warehouses, 28 sorting centers, 59 local package delivery stations, and 65 collection hubs. Of its quarter of a million employees, more than 90,000 are stationed in fulfillment centers across the US. There are two main types of shipping/ delivery programmes Amazon offer. One is called Amazon FBA and the other MFN.

    Amazon FBA or Fulfilled by Amazon is a great shipment programme Amazon offers that helps small businesses grow faster while giving customers a top notch service. Fulfilment by Amazon (FBA)’s is a logistics solution by Amazon in which you first opt for the programme then send your products to Amazon’s fulfilment centre. Now when someone orders a product and you are opted in with Amazon FBA your product will be delivered to them by Amazon. They will �fulfill’ every aspect associated with online shopping. They will package and wrap the product to be sent off. If there are any issues they will also handle customer service and manage returns on your behalf. 

    Amazon MFN or Merchant Fulfilled Network resembles the more hands on traditional concept of online shopping many know and understand. Amazon MFN will make you work and perspire especially if you are getting a lot of sales. You can get away with selling a handful of items as the time to package, seal and ship the items will not be as time consuming, however times that situation by 100 or even 1000 if you have a lot of stock and a lot of orders. The ball will entirely be in your court. You’re in control of the inventory. Whether you want to store it at a local storage house or in your garage. It’s our choice, you just have to ship it when an order comes in.

    There are pro’s and con’s to both programmes. With FBA you have to potential to easily start a side hustle. You can bulk order popular, on trend items and quickly send them to Amazon for all the nitty - gritty to be done for you. This allows flexibility for those wanting their own business but not ready to leave they day job yet. MFN will need your full and undivided attention. If are still wanting to work day job it can get stressful trying to manage orders and complaints after a full day at work. You have the potential to sell a lot more items with FBA compared to MFN because of the differing delivery fulfilment methods.

    MFN has it’s virtues as don’t have to pay Amazon some of the product’s price for the �seller fee’. You get to keep all that hard earned cash in your bank account. Plus you can sell your super rare and valuable items on MFN such as limited edition book you know won’t be printed again.

    Overall when wanting to know which is better for you, always analyse the nature what you’re selling, the quantity of stock and the time you have to manage the sales.