Seller Summary: The Pros and Cons of FBA vs. MFN
Comparing the benefits and shortcomings of Fulfillment by Amazon and Merchant Fulfillment Network
Amazon FBA (Fulfillment by Amazon) and MFN (Merchant Fulfillment Network) are two fulfillment options offered by Amazon for their third-party sellers. Each has its own benefits and drawbacks, and which one is best for a seller depends on their individual circumstances.
In this post, we cut through the noise and summarize the pros and cons simply and succinctly so that you can choose the best option for you.
Benefits of Amazon FBA
Storage and shipping
With FBA, Amazon handles all the storage and shipping of products, which saves time and effort for sellers. It also means that Amazon is responsible for ensuring timely delivery and handling any customer service issues.
FBA products are eligible for Amazon Prime, which can increase sales and visibility for sellers.
FBA can fulfill orders from other sales channels like eBay or Shopify, which makes it easier for sellers to manage their inventory.
FBA products are covered by Amazon’s customer service, which can help resolve any issues that arise with orders.
Cons of Amazon FBA
FBA fees can be higher than MFN fees, especially for small or low-margin items.
Sellers using FBA must keep their inventory in Amazon’s warehouses, which can lead to issues with managing inventory levels.
FBA sellers may incur additional costs for services like labeling, packaging, or removal of inventory.
FBA sellers have limited control over packaging and shipping options, which can make it harder to differentiate their brand.
Benefits of MFN
Control over inventory
With MFN, sellers retain control over their inventory and can handle their own storage and shipping.
MFN fees can be lower than FBA fees, especially for sellers with larger items or slow-moving inventory.
Faster shipping times
MFN can provide faster shipping times for sellers who have their inventory located near their customers.
Sellers can add personal touches to their packages, like thank you notes or promotional materials, which can increase customer loyalty.
Cons of MFN
Shipping and handling
MFN sellers must handle their own shipping and customer service, which can be time-consuming and expensive.
MFN sellers must manage their own inventory storage, which can be challenging for sellers with limited space.
MFN sellers may have longer shipping times, especially if their inventory is located far from customers.
No Prime eligibility
MFN products are not eligible for Amazon Prime, which can reduce visibility and sales for some sellers.
The Bottom Line
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