Just as businesses head into the peak Q4 holiday season, Amazon is reducing the inventory levels allowed by their distribution centers by as much as 30-40% for many brands. Because of these changes, sellers who rely solely on Amazon to fulfill orders (known as Fulfillment by Amazon, or FBA) may experience out-of-stock status if the inventory levels allowed by Amazon are less than what are needed to meet the products’ sales demands. Even brands with excellent Inventory Performance Index (IPI) scores are seeing their inventory levels being cut by Amazon.
To avoid running out of product, especially during the critical Q4 season, sellers are strongly recommended to use Fulfillment by Merchant (FBM) either in combination with FBA or alone. Fulfillment by Merchant is where sellers take responsibility for warehousing and shipping orders. Today, 57% of Amazon sellers are not using FBM. (Only 34% of Amazon sellers use a combination of FBA and FBM, and only 9% use FBM alone.)
To help sellers execute FBM, Hinge Global and DM Fulfillment are offering a joint service called TurnKey FBM. TurnKey FBM is a streamlined fulfillment solution for brands and distributors, enabling them to avoid the restrictions of FBA. TurnKey FBM leverages DM Fulfillment’s direct-to-consumer fulfillment expertise and cost-effective shipping. In fact, using TurnKey FBM may be cheaper than FBA, and also result in faster shipping to consumers.