Selling dog products? Should you use Amazon's FBA or opt for FBM?
Learning the difference between FBM and FBA for consumer shipping
Gone are the days when online shoppers waited four to six weeks for a package to arrive, now largely due to powerhouse online marketplace Amazon. But are today’s online consumers more interested in where the items are shipped from or just getting them in a timely manner? In the U.S., most consumers (40%) want packages in a two-day turnaround. Meanwhile, 18% of online consumers want their items even faster — next-day delivery. Other online consumers are a little more patient — 21% are willing to wait three to four days.
So pet product sellers, would your inventory be better off sold and shipped via Fulfillment by Amazon (FBA) or should your company opt for Fulfillment By Merchant (FBM)? There are pros and cons for both.
The good news is FBA and FBM services take over the obligation to handle Customer Service, returns and calculate shipping rates. This frees up company time to handle more pressing issues, such as making sure the pet products are of quality and working on new product releases. However, there are some caveats for using third-party shippers.
What is FBA?
For Amazon Prime users, FBA services offer pet owners the option of free, expedited shipping that ranges anywhere from one to two days (including weekends). Additionally, non-Prime users also reap the benefits even if they don’t buy items totaling $25 or more. Non-Prime users can either wait a few extra days to get free shipments for items that are in an FBA warehouse, or wait until “Amazon Day.” “Amazon Day” can vary; it is the weekday or weekend date that Prime users prefer to receive their items. Delivery drivers will arrive to drop off all packages at once, often resulting in packages being delivered sooner than the original estimated time of delivery.
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As an Amazon affiliate, I earn a percentage from purchases with my referral links. I know some consumers are choosing to boycott Amazon for its DEI removal. However, after thinking about this thoroughly, I want to continue promoting cool products from small businesses, women-owned businesses and (specifically) Black-owned businesses who still feature their items on Amazon. As of the first date of Black History Month 2025, each new post will ALWAYS include a MINIMUM of one product sold by a Black-owned business. (I have visited the seller’s official site to verify that Amazon Black-owned logo.) I am (slowly) doing this with older, popular posts too. If you still choose to boycott, I 100% respect that decision.
Online shoppers from both groups would have to choose the “Free Shipping by Amazon” to specifically shop for items that would qualify for this deal though. Online merchants who have not shipped their full stock of items via FBA service risk losing customers who would prefer to get the free shipping deal. The service comes at a cost to the e-commerce seller either way. The FBA referral fee includes a percentage of the item price, shipping costs, gift-wrapping charges (if applicable) plus storage. Individual sellers may end up paying less than a business account ($0.99 per item sold versus $39.99 per item sold), but this is largely dependent on volume and the pace of sales.
For pet companies who hesitate to ship large amounts to Amazon warehouses, there still is the option to just ship in-house and per sale. Online consumers would then be responsible for paying individual shipping fees, even if they’ve already qualified for an Amazon Day or Amazon Prime deal. Unfortunately, the latter option puts companies at risk of losing customers who want all items at once for a cheaper shipping and handling rate.
What is FBM?
Unless the pet e-commerce seller is a company as popular as Chewy, having a steady rotation of pet supply purchases may be unrealistic. For pet supply companies that sell items online but don’t find it financially feasible to pay FBA’s multiple rates, an FBM may be the wiser option. The company can still list items on online marketplaces such as Amazon. However, a third-party logistics (3PL) company can ship these same items out as needed.
As is the case with Amazon, FBM service options handle Customer Service queries, fulfill new orders and process (potential) returns. Depending on how much storage space is needed and how quickly the items are sold, FBM service may cost less for the real estate that is needed to house inventory. Smaller FBM facilities may even be a perk; they’re dealing with less stock than a massive Amazon warehouse so shipping errors may decline. However, should the company be located elsewhere (Canada, for example), there must be an organized plan for Section 321 (shipments used to clear U.S. Customs and Border Patrol, or CBP).
Which is better between FBA and FBM?
While an FBA seller is popular courtesy of Amazon’s household name, mistakes may happen in any warehouse. Quality shipping and attentive Customer Service go a long way with both groups to right a wrong when an item is damaged and/or incorrect. While dog owners may need their items sooner rather than later, they also want a seamless option to troubleshoot problems along the way.
Before choosing FBA or FBM service options, e-commerce sellers should inquire about 1) storage, 2) return procedures, 3) shipping turnaround times, 4) Customer Service timelines (including work hours), 5) Section 321 practices (if the location is not in the U.S.) and 6) minimum and maximum pricing to ship each item.
Depending on the variety of inventory, there may be a case in which FBA makes the most sense for some inventory and FBM is the ideal choice for others. By understanding how to comparison shop for both, dog e-commerce sellers can narrow down the most suitable option for their immediate needs.
Shamontiel is a dog lover to her core: 501 completed walks with 85 dogs, eight dog-housesittings and six dog boardings at the time of this publication.
Did you enjoy this post? You’re also welcome to check out my Substack columns “Black Girl In a Doggone World,” “BlackTechLogy,” “Homegrown Tales,” “I Do See Color,” “One Black Woman’s Vote” and “Window Shopping” too. Subscribe to this newsletter for the weekly posts every Wednesday. Thanks for reading!