fbpx

[TML] FBM > FBA?

2 min read

This is a repost of a previous Tiny Marketing Lab Newsletter. If you haven’t been receiving my email newsletter, you can subscribe here.

Hello,

Remember when I mentioned I’d be shifting focus from FBA to FBM this year?

Let me break it down for you.

First off, let’s get one thing straight – FBA has its perks.

Sure, it boosts your product rankings on Amazon.

Plus, Amazon Prime members love the fast delivery it offers since FBA products are shipped by Amazon.

There are tons of advantages to having your product listed as FBA on Amazon.

But here’s the thing: it doesn’t quite fit my business vibe.

Take my FBA coffee mugs, for instance.

They’re shipped from China, which means I’ve got to place orders way in advance, like 3-4 months early.

Say I want to sell “Mom” mugs for Mother’s Day – I’d have to put in my order to Chinese suppliers back in January, given that February is Chinese New Year, and they’re out of commission for weeks.

Now, here’s what can go down in those 3-4 months:

  • My coffee mugs might slip in rankings for certain keywords.
  • Sneaky sellers might swipe my winning design and create their own listing.
  • Even worse, hijackers might snatch my listing, leaving me without the buy box.
  • Then there’s the chance of shipping delays due to various transpiration issues.
  • And even if my mugs arrive at the warehouse, Amazon might drag their feet on making them available for sale.

You get the picture…

Long story short: If my mugs don’t reach the warehouse in time for Mother’s Day, it’s a tough sell. And when products don’t sell, they lose rank over time.

Sure, I could push them with Amazon Ads, but that means slim profits or even losses.

These are the FBA headaches I’ve seen over the past few years, and frankly, I’m not a fan.

So this year, I’m putting my focus on FBM.

Last year, FBM did okay. Maybe not as flashy as FBA, but enough to rake in $100k in sales annually.

FYI: $100k of last year’s sales came from FBM products.

All we need? A bunch of winning FBM products in niche markets.

Like “Medical Assistant,” “Scuba Diving,” “Vice-Principal,” “Oil Worker,” “Porter,” etc.

(I pulled these niches from recent sales data on PODtomatic.)

These smaller niches? Less competition. And I don’t think there are many FBA products there either, so it’s pretty easy to snag a good ranking.

Stack up winning products in these micro niches, we can score passive sales without relying on FBA.

That’s the scoop from last year, and I thought I’d pass it along.

Stay tuned for more on my approach in the next email.

Catch you later,

​—Bank K.

P.S. Quick question – do you like this bite-sized email style? Thinking it’s easier to chew on than my usual blog-length rambles. Plus, it took me just a few minutes to whip up! 🙂

Leave a Comment