FBA/FBM Failover Strategy for Amazon Sellers

Prudent Inventory Management for Amazon Sellers: FBA and FBM Synergy

Amazon sellers can benefit from a strategic combination of Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) to optimize their inventory management and sales performance. This approach addresses potential inventory challenges with FBA and ensures uninterrupted sales through a seamless FBM failover mechanism.

Core Strategy

The core of this strategy involves creating duplicate product listings with differentiated stock-keeping units (SKUs). One SKU is fulfilled by Amazon (FBA), and the other by the Merchant (FBM). The FBM listing serves as a backup and is automatically triggered when the FBA product goes out of stock. This failover mechanism helps maintain the product's algorithmic standing, prevents sales rank degradation, and ensures continuous product availability.

Inventory and Pricing

During periods of inactivity, both the FBA and FBM products maintain zero inventory. When activated, the FBM product duplicates the FBA product in all aspects except for the fulfillment method. Pricing for both products is kept consistent to avoid confusion and maintain a unified brand image. However, A/B testing is recommended to determine the optimal pricing strategy.

Shipping and Buy Box

The FBM product utilizes a shipping template with a nominal order fee to cover shipping costs. Sellers have flexibility in choosing their preferred shipping template options. When the FBA product runs out of stock, the FBM product automatically secures the Buy Box, ensuring continued sales and algorithmic support.

Benefits

This integrated FBA-FBM strategy offers several benefits for Amazon sellers:

• Mitigates Inventory Risks: Prevents stockouts and lost sales due to FBA inventory limitations.

• Preserves Algorithmic Standing: Maintains product visibility and sales rank by ensuring continuous availability.

• Optimizes Shipping: This offers flexibility in shipping options and cost management through FBM.

• Maximizes Buy Box Potential: Increases the chances of winning the Buy Box even during FBA stockouts.

• Enhances Customer Experience: Ensures uninterrupted product availability and a seamless buying experience.

By strategically leveraging both FBA and FBM, Amazon sellers can create a robust and resilient sales strategy that optimizes inventory management, maximizes sales potential, and enhances overall business performance.

Watch our Loom below for an overview from our Founder.