291 – How FBA Helps You Make Way More Money Than FBM

This episode explores the advantages of using Fulfilled by Amazon (FBA) over Fulfilled by Merchant (FBM) for Amazon sellers aiming to achieve a full-time income. The hosts, Stephen and Rebecca Smotherman, begin by defining FBA as sending inventory to Amazon for storage, organization, and shipping, while FBM involves the seller handling all fulfillment processes. Against the backdrop of potential cost savings with FBM, the discussion pivots to the significant benefits of FBA, particularly Prime eligibility, which attracts more buyers and often leads to increased sales. More significantly, FBA sellers gain preferential treatment in securing the Buy Box, the featured seller spot on Amazon product pages, which accounts for over 82% of sales. For instance, a coaching client experienced a surge in sales from one sale every few days with FBM to over 30 sales a day with FBA. The conversation also highlights how FBA facilitates broader regional distribution of inventory, increasing visibility and sales opportunities, and enables sellers to outsource fulfillment, freeing up time to focus on scaling their business. The hosts conclude by inviting listeners to a free workshop on maximizing profits as Amazon resellers, underscoring the emerging industry pattern of leveraging FBA to optimize sales and business growth.