Amazon DSP ads are great for larger businesses with more ad budgets while the regular sponsored ads are viable for smaller stores.

Here’s the difference:

Amazon DSP:

• More customisation options
• Ability to advertise on Amazon partner sites
• Cost per mile (Pay for per 1,000 impressions regardless of purchase)
• Need more budget

Amazon Sponsored Ads:

• Fewer customisation options
• Advertise on Amazon only 
• Cost Per Click (Pay per click basis - regardless of purchase)
• Viable with a low ad budget

Amazon will store, pack, and ship products if you start selling on Amazon with FBA. The customer service is managed by Amazon as well, you’re only responsible for sending products to Amazon. But Amazon charges some fees for Fulfilment By Amazon.

FBM stands for Fulfilment by Merchant. In this case, the merchant manages their own inventory, shipping, and customer service. You just have to place the product listings on Amazon and do everything on your own to avoid additional platform fees.

Which is better?

FBA is better for sellers selling higher margin products in higher volumes while the FBM is great for sellers selling lower margin products or are working at a smaller scale. It’s up to you to do a cost comparison to get the most viable option for your business.

Selling on Amazon isn’t easy now because of the immense competition on the platform. Of course, you can start selling on your own, but you wouldn’t be sure if you can really make your dream come true. 

Instead of learning little mistakes at a later stage, you can hire Amazon experts from an agency to get a head start on your business. Scaleforte has built several successful Amazon stores for clients, and you can be the next top Amazon seller for your products. 

Contact us now if you need Amazon selling services from Scaleforte.