Best Practices for Selling with Amazon FBM

If you’re selling on Amazon Marketplace with FBM (Fulfilled by Merchant) but feel like things aren’t going as smoothly as you’d hoped, you’re in the right place for expert tips and tricks to get back on track.

Managing storage, shipping, and customer service with FBM can feel like a lot to handle, but it can be worth it with the right strategies. At Delta Fulfilment, we’ve helped plenty of businesses thrive with our Amazon Fulfilment Services, so we know the ins and outs of the best practices for selling with Amazon FBM.

Troubleshooting Selling With Amazon FBM

If you’ve thrown yourself headfirst into using Amazon FBM or quickly set up your Amazon Seller Central account without researching the basics, you might be feeling the strain now. The good news is that with a few tips and tricks, you can quickly get back on track and simplify your operations.

Are you finding managing stock levels tricky?

Running out of stock is a surefire way to lose sales, but overstocking can tie up your cash flow and leave you drowning in unsold goods. Aim for the sweet spot by tracking your sales trends and getting familiar with how to calculate reorder levels to manage stock levels efficiently. Remember, a warehouse full of unsellable products is essentially a very expensive storage problem.

Is shipping eating into your time and money?

The shipping template in your Amazon Seller Central account defines your shipping options, times, and costs. Setting this up correctly allows merchant-fulfilled orders to be processed efficiently and reach customers without unexpected delays or charges. 

Always double-check product weights and dimensions to keep shipping costs under control, as oversized products can lead to surprise fees. Shopping around for couriers is another way to cut costs, but partnering with a trusted fulfilment provider can take things a step further. At Delta Fulfilment, we are able to offer discounted shipping rates as we have many different courier partnerships, so we can save you time, money, and hassle.

Is your return policy causing you trouble?

Returns are a challenging part of selling online, whether you’re selling using Amazon FBA or FBM. The difference between the fulfilment methods is who has to deal with the returns. As an FBM seller, it’s your responsibility to make sure your return policy aligns with Amazon’s requirements and to manage returns efficiently.

Good returns management speaks volumes about your business. By processing refunds quickly and following Amazon’s policies, you’re more likely to keep your customers’ trust. A solid reverse logistics process can also reduce your order fulfilment costs and avoid waste.

FBM Best Practices That Will Improve Your Sales

1. Spend Time on Product Listings

When customers are scrolling, you have roughly half a second to catch their eye, so the effort you put into listing your products on Amazon is well worth it. Clear, descriptive titles with important details like size, colour, or features will make a big difference. 

Strategically using keywords in your product listing will help Amazon’s algorithm match your products to the customer’s search. With approximately two-thirds of product clicks coming from the first page of Amazon’s search results and 36% in the first two rows, making your listing keyword-rich will help you get found. Just don’t go OTT!

Remember, you are writing for humans and not just for the algorithm, so make your listing easy to read by using bullet points to show off your product’s best bits and explain why they matter. Instead of just saying “durable material,” tell customers why that durability will make their lives easier.

And don’t skimp on the visuals. If your product images aren’t high-quality, you need to take new ones. Show your product from different angles, zoom in on key details, and throw in a lifestyle shot or two to help people picture it in action. After the price, the image and the title are the two most important factors that influence whether customers stop scrolling or move on.

2. Get Real About Your Handling Time and Order Processing

Keep your shipping processes efficient and realistic to avoid unnecessary headaches. If processing an order usually takes two days, don’t promise same-day dispatch to impress. Accurate handling times save you stress and help you stay under Amazon’s late shipment rate threshold of 4%. 

3. Think About Packaging Quality

Have you thought about how much your packaging is really costing you? Next time you’re restocking supplies, consider switching to lightweight yet durable materials to cut down on shipping expenses. Better yet, explore sustainable fulfilment options that protect your products and the planet.

Your packaging is the first impression customers get of your brand, so use it to spark excitement or even as a subtle marketing tool. While it doesn’t need to rival luxury brands, it should be tidy, professional, and easy to open. After all, no one likes wrestling with an over-taped package.

4. Pick Shipping Services with Tracking and Insurance

Choosing the right shipping service can save you a lot of trouble. Make sure you’re working with carriers that offer tracking and shipping insurance to cover losses or damage. Services that provide automatic tracking updates are a bonus, as they keep customers informed without you needing to follow up manually.

5. Provide Excellent Customer Service 

Getting your customer service right will make a big impact on your success. While standout products and competitive prices grab attention, it’s positive reviews that push you up the rankings and draw in even more customers.

When using FBM, managing customer expectations during peak shopping seasons becomes even more important. During the holidays and Amazon prime days, you’ll be under pressure with more orders, but buyers don’t want to feel left in the dark, especially when they’re eagerly waiting for an order. Make it a priority to share dispatch and delivery updates promptly. If delays occur in the fulfilment process, be transparent: apologise, explain the situation, and provide solutions. Clear communication can prevent frustration and build trust.

Negative feedback? You can’t please everyone all the time, so it will happen occasionally. Instead of taking it personally, view it as an opportunity to improve. Respond calmly, address the issue, and offer a solution. A quick, thoughtful response can often turn a dissatisfied customer into a loyal advocate for your brand. You can also look for patterns in the feedback and use them to improve. For example, if customers often mention delays, you may need to re-evaluate your handling times or shipping services. 

6. Keep an Eye on Your FBM Seller Performance Data

Your performance metrics as an Amazon FBM seller are a reflection of how well you’re meeting Amazon’s standards and your customers’ expectations.  Amazon keeps a close watch on these metrics to make sure sellers maintain a high level of service. By reviewing your data regularly, you can identify potential issues early and address them before they impact your business.

Focus on the key metrics Amazon prioritises, such as your order defect rate, which must stay under 1%, and your late shipment rate. On-time delivery performance is equally important, as falling behind on these can lead to penalties or even account suspension. 

Good performance data also opens the door to becoming a Prime seller through Amazon’s Seller Fulfilled Prime (SFP) program. To qualify, you need to meet strict criteria, such as maintaining a 99% on-time shipment rate, keeping cancellations under 0.5%, and using Amazon Buy Shipping Services for the majority of orders. These metrics show that you can offer the reliable, fast service Prime customers expect, which can significantly boost your visibility and sales potential.

Lastly, keep an eye on your sales data and return on ad spend (ROAS). By analysing this data, you can spot trends, pinpoint top-performing products, and adjust your strategy to focus on what works. Paying attention to these numbers will help meet Amazon’s requirements and unlock opportunities to grow your business and maximise your profits.

Ready to Optimise Your Amazon FBM Operations?

At Delta Fulfilment, we’ve helped countless Amazon FBM sellers succeed, so we know it’s not always easy. We get the challenges of managing storage, shipping, and customer service, but with the right strategies and tools, FBM can be both rewarding and profitable. Whether you’re looking to optimise your current setup or scale your business to new heights, taking the time to get things right will pay off in the long run.

If you’re ready to take your Amazon FBM to the next level, why not let Delta Fulfilment handle the heavy lifting? Our Amazon FBM Services integrate with your Amazon Seller account to manage everything from inventory management to order tracking and shipping. Our expert team delivers fast, reliable fulfilment, custom branding options, and discounted global shipping.

Let’s take the stress out of Amazon FBM together. Get a quote today to find out how we can support your business and help you thrive.