Amazon FBM

Fulfillment by Merchant (Amazon FBM) is a flexible and cost-effective alternative to Fulfillment by Amazon (FBA) for Amazon sellers looking to maintain control over their inventory and order fulfillment processes. Unlike FBA, where Amazon handles storage, packing, and shipping on behalf of the seller, FBM enables merchants to fulfill customer orders independently, much like eBay sellers. This approach offers sellers the opportunity to directly manage their inventory, shipping, and customer service, allowing for a more hands-on approach and potentially higher profit margins. Other than shipping expenses, the only Amazon FBM Fees are the referral commission paid on the sale. Since the seller (or a third-party) is providing the fulfillment, Amazon is not getting any additional money for warehousing and shipping. You can use an Amazon FBM calculator tool to compare between Merchant Fulfillment and FBA fees, profit, and ROI. AZInsight is one such tool that provides all of the sales data that you need to make an informed buying decision. ShippingEasy and ShipStation are two third-party shipping platforms that can save you significant money over the published carrier rates.

Featured Services Providers

Amazon FBM differs from Amazon FBA in several key aspects. While FBA offers sellers the convenience of Amazon’s extensive logistics network and customer support, it comes at the cost of storage fees, fulfillment fees, and reduced control over the fulfillment process. Amazon FBM, on the other hand, empowers sellers to manage their own inventory and shipping, enabling them to negotiate their own shipping rates and avoid certain Amazon Seller Fees associated with FBA. This can lead to increased profit margins, greater flexibility in managing order fulfillment, and the potential for faster order processing during peak seasons, as sellers can bypass Amazon’s sometimes congested fulfillment centers.

There are numerous Third-party Amazon FBM services which offer numerous benefits to sellers seeking an alternative to FBA. By partnering with a reliable third-party service, sellers can store their products at competitive rates, often much cheaper than those charged by Amazon. These services provide efficient order fulfillment, often shipping products within hours or even minutes of an order being placed. They also prioritize sustainable practices, using appropriately-sized packaging to save on shipping costs and minimize waste.

Partnering with third-party Amazon FBM services is especially valuable for international sellers who operate in multiple countries but prefer not to use FBA. These services eliminate the need for sellers to maintain their own warehousing and order fulfillment infrastructure, freeing up time and resources to focus on growing their business and improving their product offerings.

Handling their own warehousing and order fulfillment allows sellers to avoid the inbound shipping costs associated with FBA items (especially the oversize items), which can significantly erode profits. Additionally, Amazon FBM offers sellers more control over inventory management, ensuring they can maintain desired stock levels and quickly respond to changes in demand. Sellers can also offer a wider range of specialized products and services, such as custom packaging or personalized customer support, which may not be feasible through FBA. These benefits contribute to a more flexible and cost-effective fulfillment strategy that empowers sellers to make the most of their Amazon business.

In the table below, you will find a list of Amazon FBM Prep Companies that will receive and store your inventory, process and ship orders as they come in from Amazon, and even process returns. So in addition to prepping your FBA Orders, why not hire one of these Prep Services to be your Amazon FBM Company!

Amazon FBA Prep Services

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Third Party Fulfillment

Need to outsource your Shopify, Walmart, or other Ecommerce logistics?
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Recommended Amazon Seller Supplies

Whether prepping for FBA or shipping directly to the customer, here are the supplies you will need.

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Frequently Asked Questions (FAQ)

What is Amazon FBM?

Amazon FBM stands for “Fulfilled by Merchant,” which allows sellers to list and sell their products on the Amazon marketplace while fulfilling orders themselves, rather than using Amazon’s FBA fulfillment services.

The percentage that Amazon takes from sellers varies depending on the category of the product being sold, as well as the seller’s chosen fulfillment method (i.e. Amazon FBM or FBA). For most categories, Amazon FBM takes a referral fee of 15% of the item’s sale price. However, some categories have different referral fees. Variable closing fees are added to items in the media category, and FBA sellers may also be charged additional fees for storage and fulfillment services.

The steps in order fulfillment typically include receiving and processing orders, picking and packing items for shipment, shipping the items to customers, and handling any returns or exchanges.

Amazon FBM sellers can be eligible to win the Buy Box. There are several factors that go into winning the Buy Box, including price, seller feedback, and shipping time and cost.

The cost to sell FBM on Amazon varies depending on the product category and the seller’s chosen pricing and shipping options. In general, Amazon FBM sellers pay a referral fee for each item sold, as well as any shipping costs associated with fulfilling orders.

An Amazon FBM / FBA calculator is a tool that allows sellers to estimate their potential profits and costs when using Amazon’s FBM (Fulfillment by Merchant) or FBA (Fulfillment by Amazon) services. The calculator takes into account factors such as product price, shipping costs, and fees to help sellers make informed buying decisions and determinations about the best fulfillment method (FBA or FBM).

Azinsight is one such Amazon product page research tool for sellers that includes an Amazon FBM / FBA calculator.

Amazon’s Fulfillment by Merchant (Amazon FBM) means that a seller lists and sells products on Amazon’s website, but is responsible for storing, packing, and shipping the products to customers themselves, rather than using Amazon’s FBA fulfillment services.

Fulfillment by Amazon (FBA) is a service offered by Amazon that allows sellers to store their products in Amazon’s warehouses and have Amazon handle the shipping and customer service for orders. Fulfillment by Merchant (FBM) means that the seller is responsible for storing, packing, and shipping products themselves.

In FBM, the seller has the option to charge a shipping fee to the buyer, or to offer “Free Shipping”. Either way, the shipping costs are part of the total price that the seller is charging, so in fact, the seller is responsible for paying the shipping costs associated with fulfilling orders. Amazon seller fees are based on the total cost to the buyer (price plus shipping).

A third party Amazon seller is a seller who lists and sells products on the Amazon marketplace, but is not directly affiliated with Amazon as a first-party seller.

In FBM, the seller is responsible for handling returns and customer service inquiries directly with the customer.

In Amazon FBM, sellers can choose their own shipping options and carriers to fulfill orders, as long as they meet Amazon’s delivery time requirements. In the US, the main options are USPS, UPS, and Fedex. Amazon allows shipping to be purchased directly through the Amazon Seller Central dashboard. There are also third-party shipping programs such as Shipping Easy & Ship Station that often provide discounts for certain types of shipping options. These third-party shipping platforms are great for generating return labels, shipping orders from Walmart dot com, and Amazon FBM order processing.

The costs associated with using Amazon FBM as a seller include referral fees, variable closing fees for items in the Media category, shipping costs, and any other fees associated with selling on the Amazon marketplace.

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