University - Shipping Items

Fulfillment By Merchant (FBM)

An Overview of Amazon’s 2018 FBA Fee Increases

Fulfillment By Merchant (FBM) is when the seller is in control of his entire handling and shipping process. Instead of paying a service fee and shipping inventory to Amazon to handle, the seller uses his or her own resources and sends the items directly to the buyer. By choosing FBM, a seller takes complete control of the entire process, from purchasing, to shipping and receiving.

When to Choose Fulfillment By Merchant

Selling items using the FBM method is beneficial for the seller when the items being sold are exclusive to the seller’s shop. This will build credibility of the product and the online store. Using FBM is also beneficial for small volume businesses when the shipping process does not become overwhelming and possibly affect the standard expected by Amazon and the customer.

Advantages of FBM

  • Seller maintains control over every aspect of the business.
  • Margins are greater since the seller does not need to pay additional fees to Amazon.
  • Brand building is more attainable.
  • There is no need to worry about any unavoidable losses due to policy changes at Amazon.
  • The seller has less paperwork to deal with when working directly with the buyer.
  • The seller has freedom to run the business as desired.
  • The seller has a greater grasp of inventory in stock, what sells, and what changes may need to be made for greater success.
  • There are no unexpected costs; the seller is aware of all finances every step of the way.

Differences with Seller Fulfilled Prime

It is important to note that Seller Fulfilled Prime (SFP) differs from Fulfillment by Merchant. This fulfillment method is a combination of both Fulfillment by Amazon (FBA) and FBM — like FBA, you get access to Amazon Prime customers and like FBM, you handle shipping, handling, and customer service yourself.

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