Amazon FBM: A Comprehensive Guide to Selling and Shipping on Amazon

If you’re an Amazon seller navigating the world of ecommerce, you’ve probably heard of Amazon FBA—where Amazon takes care of storage, packing, and shipping for you. But what if you want more control over these steps? That’s where Amazon FBM (Fulfillment by Merchant) comes in. Amazon FBM allows sellers to manage their own storage, packing, and shipping, putting them in the driver’s seat of their fulfillment process. While Amazon FBM allows sellers to manage their own storage, packing, and shipping, they can also utilize third-party fulfilment centres to streamline their operations.

In this guide, we’ll explore everything you need about Amazon FBM: its benefits, how to get started, tips for success, software to help you manage orders, and best practices for maximizing efficiency. Let’s dive into how Amazon FBM can open up new opportunities for you as a seller, helping you save fees, build your brand, and create a custom experience for your customers.

• What is Amazon FBM?
• Getting Started with Amazon FBM (Quick Overview)
• How Amazon FBM Works
• Amazon FBM vs. FBA
• Shipping and Fulfillment with Amazon FBM
• Best Practices for Amazon FBM Sellers
• Seller Fulfilled Prime with Amazon FBM
• Amazon FBM Inventory Management
• Outsourcing Fulfillment with Amazon FBM
• Tips for Success with Amazon FBM
• Common Issues and Troubleshooting
• Conclusion

What is Amazon FBM?

Simply put, Amazon FBM (Fulfillment by Merchant) is a fulfillment option that lets you handle all aspects of shipping and storage for the products you sell on Amazon. Unlike Amazon FBA, where Amazon FBA sellers leverage Amazon’s services for storage, packing, and shipping, FBM sellers handle these aspects themselves. You can even choose your own shipping carriers, giving you the freedom to negotiate competitive shipping rates and control every part of the fulfillment process.

With Amazon FBM, you can design a fulfillment setup that works best for your business. It’s ideal for sellers who want to avoid the storage fees and restrictions of Amazon FBA while building a unique brand experience for customers. Plus, you’re in charge of all customer service inquiries, allowing for a more personalized approach.

Benefits of using Amazon FBM

Amazon sellers have countless reasons to opt for FBM. Here are some of the standout benefits:

Lower Fees Compared to Amazon FBA

One big advantage of Amazon FBM is the cost. With FBM, you skip the FBA fees related to storage and handling, potentially saving money—especially if you have products that require long-term storage or specialized packaging. Lower fees mean you have more flexibility to allocate resources as needed. Additionally, managing your own fulfillment can help optimize shipping costs, further enhancing the cost-saving benefits of Amazon FBM.

More Control Over the Fulfillment Process

Amazon FBM gives you full control over the fulfillment process. You decide how products are stored, packed, and shipped, and you’re able to ensure quality in every order. This level of control is ideal if you want to implement unique packaging or specific shipping standards.

Flexibility with Shipping Carriers and Rates

One of the best things about Amazon FBM is the ability to choose your own shipping carriers and negotiate rates. This flexibility helps you find competitive shipping rates that fit your budget, or even offer premium shipping options to enhance the customer experience.

Opportunity for Brand Building and Customer Service

With Amazon FBM, you’re the one managing customer service inquiries and returns. This gives you the chance to build a direct relationship with customers, providing personalized support and improving your brand reputation. The more control you have over the customer experience, the more loyalty and trust you can build over time.

Getting Started with Amazon FBM (Quick Overview)

Creating an Amazon seller account

• Sign up for a professional selling account to access full services
• Verify your email address and phone number
• Set up your seller profile and store

Setting up your Amazon FBM seller account

• Define your handling time, transit time, and capacity limits in Seller Central settings and templates
• Set up your shipping options and carriers
• Configure your inventory management and tracking
• Use the Amazon Seller Mobile App to receive notifications for order shipments and access various tools and analytics to manage inventory and sales tracking

Understanding Amazon FBM fees

• Referral fees range from 6% to 45% depending on the product category
• Monthly subscription fee of $39.99 for the Pro FBM plan
• Per-item selling fee of $0.99 for each item sold
• Other fees may apply, such as shipping and handling fees

How Amazon FBM Works

Now that you’re set up, let’s look at the day-to-day process of running an Amazon FBM operation.

Listing your products on Amazon

The key to success on Amazon is a great product listing. Use clear, high-quality images, write detailed descriptions, and set competitive prices. A well-optimized listing attracts Amazon shoppers and helps you stand out from the competition.

Warehouse and inventory management

With Amazon FBM, you’ll manage your inventory storage independently. This could mean using your own warehouse, or partnering with a third-party fulfillment provider to keep things organized. Either way, inventory management is crucial to ensure that products are in stock and ready to ship.

Shipping orders on time

Timely shipping is essential. Amazon offers a Buy Shipping feature that allows you to purchase and print shipping labels from Seller Central, making the process easier and providing tracking numbers to customers for reliable delivery.

Amazon FBM vs. FBA

Key differences between FBM and FBA

• Amazon FBA: Amazon handles all storage, packing, and shipping for FBA sellers, along with customer service and returns.
• Amazon FBM: Sellers handle storage, shipping, and customer support themselves, offering more flexibility.

When to Choose Amazon FBM

Amazon FBM is ideal if you want more control over fulfillment, lower fees, and the freedom to manage customer service inquiries yourself. It’s also a great option if you’re focused on building a unique brand and providing a premium experience. Additionally, Amazon FBM allows sellers to easily integrate and manage other sales channels, maximizing market reach and customer engagement.

Shipping and Fulfillment with Amazon FBM

As an FBM seller, you have the flexibility to choose from various carriers and set your own shipping rates. Amazon’s ‘Buy Shipping’ feature simplifies this process by allowing you to purchase and print shipping labels directly from Seller Central, ensuring reliable delivery for your customers.

For sellers seeking more advanced solutions, platforms like Shipmarvel and Lofko offer tailored services:

Shipmarvel

Ideal for small to medium-sized businesses, Shipmarvel provides user-friendly tools for order management, shipping label creation, and tracking. Its intuitive interface makes it easy to streamline your shipping process without the need for extensive technical knowledge.

Lofko

Designed for larger enterprises with complex logistics needs, Lofko offers comprehensive inventory control software. It integrates seamlessly with multiple sales channels, automates order processing, and provides real-time analytics to optimize your fulfillment operations.

Providing Tracking and Managing Delivery Times

Transparency is key to building trust with your customers. Always provide tracking numbers for all shipments and strive for on-time delivery. Utilizing platforms like Shipmarvel or Lofko can help automate these processes, ensuring that customers receive timely updates and maintain a strong brand reputation.

By leveraging these tools, you can enhance your shipping efficiency, meet customer expectations, and focus on growing your Amazon FBM business.

Using Amazon’s ‘Buy Shipping’ feature

Amazon’s ‘Buy Shipping’ feature is a convenient tool for FBM sellers to streamline their shipping process. This feature allows you to purchase shipping labels directly from Amazon, which can help reduce costs and simplify the logistics of getting your products to customers. To use the ‘Buy Shipping’ feature, navigate to the ‘Manage Orders’ section of your Seller Central account. Select the order you want to ship, and click on the ‘Buy Shipping’ button. From there, you can choose your preferred shipping carrier and print out a shipping label. This not only saves time but also ensures that you are using reliable shipping options that meet Amazon’s standards. By leveraging this feature, FBM sellers can enhance their shipping efficiency and focus more on growing their business.

Providing tracking numbers and managing delivery times

As an FBM seller, providing tracking numbers and managing delivery times effectively is crucial for maintaining customer satisfaction. When you use Amazon’s ‘Buy Shipping’ feature or purchase shipping labels from a third-party carrier, you can easily provide tracking numbers to your customers. Once the shipping label is printed, upload the tracking number to Amazon and share it with the customer. This transparency allows customers to track the status of their packages, enhancing their overall shopping experience.

Additionally, Amazon’s ‘Shipping Settings Automation’ feature can help you optimize delivery dates and ensure timely deliveries. By setting up this feature, you can automatically adjust shipping settings based on various factors, such as carrier performance and delivery locations. This proactive approach helps in managing delivery times more effectively, reducing the chances of delays and improving customer satisfaction. By consistently providing tracking information and managing delivery times, FBM sellers can build trust and loyalty with their customers, leading to repeat business and positive reviews.

Best Practices for Amazon FBM Sellers

1. Maintain Accurate Inventory and Order Management

Keeping track of inventory is crucial to avoiding stockouts or delays. Regularly monitor your stock levels, set reorder points, and use Amazon’s inventory management tools in Seller Central to stay updated in real time. Having a streamlined order processing system—where items are pulled, packed, and prepared as soon as orders come in—ensures your fulfillment process stays efficient and reliable.

2. Provide Timely and Transparent Shipping

Reliable shipping is key to customer satisfaction. Use Amazon’s Buy Shipping feature to streamline label printing and provide tracking numbers for every order, allowing customers to track their shipments. Double-check orders before shipping to reduce errors, and keep all necessary packing supplies on hand to prevent delays. This transparency builds customer trust and reduces follow-up inquiries.

3. Implement a Customer-Friendly Return Process

A clear, efficient return policy makes returns easy for customers and helps build trust in your brand. Include simple return instructions, eligibility requirements, and a reliable return address. Set up a system to handle returns promptly, inspect returned items, and process refunds quickly. This approach shows customers you’re dedicated to their experience, even when issues arise.

Seller Fulfilled Prime with Amazon FBM

For FBM sellers who want the benefits of Prime without using Amazon FBA, Seller Fulfilled Prime (SFP) is a great option. With SFP, FBM sellers can offer the coveted Prime badge on their listings, giving customers the fast, reliable delivery they expect from Prime products—while still managing their own storage, packing, and shipping.

What is Seller Fulfilled Prime?

Seller Fulfilled Prime is a program that allows Amazon FBM sellers to offer Prime shipping and access the loyal Prime customer base, without having to send inventory to Amazon’s fulfillment centers. However, sellers must meet Amazon’s strict standards for delivery speed, tracking, and customer service. This includes consistently shipping orders out quickly and providing tracking information to customers.

For sellers who can meet these standards, SFP offers a unique opportunity to display the Prime badge on their products, which can improve visibility and sales.

Benefits Of Seller Fulfilled Prime

Joining Seller Fulfilled Prime gives FBM sellers access to Amazon’s loyal Prime customer base, greatly increasing visibility and sales potential. Many Prime shoppers filter their searches to show only Prime-eligible items, so having the Prime badge on your listings can make your products more competitive. This visibility can help your listings stand out and attract more customers, especially those who prioritize fast and reliable shipping.

SFP also allows sellers to maintain control over their fulfillment process—including inventory storage, packaging, and shipping—while still meeting Amazon’s high standards for quick delivery and customer service. This means you can deliver a consistent and trustworthy experience for customers, which builds brand loyalty and satisfaction, all while benefiting from the reach and appeal of Prime.

Amazon FBM Inventory Management

When you’re handling your own inventory, staying organized is key. A few smart practices can go a long way in keeping everything on track and helping you avoid the dreaded stockouts or overstocking. Here’s how to stay on top of your inventory and make sure it’s always ready to go.

Keep an Eye on Inventory Age

Products that sit around for too long can eat up storage space and even add extra costs. Regularly checking how long items have been in storage lets you spot any slow-movers before they become a problem. Tools in Seller Central can help you track inventory age so you know when to run a quick promo or adjust pricing to move those items along. It’s all about keeping things fresh and making room for the next batch.

Tackle Stranded Inventory Right Away

Stranded inventory happens when your items are in stock but not available for sale, maybe because of a listing glitch or pricing issue. It’s like having a great product stuck on a shelf no one can see! Regularly check for stranded items and fix any issues so they’re back in front of customers. Keeping an eye out for these little hiccups can help prevent storage costs from piling up—and make sure every product has its chance to shine.

Replenish Before You Run Out

Running out of stock can be a real momentum-killer. Set up regular inventory checks and reorder points so you’re always ahead of demand. Amazon’s tools can help you keep tabs on stock levels so you can reorder before it’s too late. This way, you’re always ready to meet customer demand without dealing with the hassle of urgent restocks.

Outsourcing Fulfillment with Amazon FBM

Managing your own fulfillment can be rewarding, but it also requires time, space, and a solid logistics plan. For FBM sellers who want to scale up without getting bogged down by storage and shipping, outsourcing fulfillment to a third-party logistics (3PL) provider can be a game-changer. Here’s what to know if you’re considering taking this step.

Can FBM Sellers Outsource Fulfillment?

Yes! FBM sellers can absolutely outsource their fulfillment to third-party providers who handle the storage, packing, and shipping for you. This setup is perfect for those who need extra help during busy seasons or are ready to grow without investing in additional warehouse space. By partnering with a reliable 3PL, you can simplify your operations and stay focused on expanding your business.

The Pros and Cons of Outsourcing Fulfillment

Pros: The biggest perk of outsourcing is efficiency. A 3PL provider can take over the heavy lifting—literally—so you don’t have to worry about finding storage space, managing stock levels, or packing each order. This freedom lets you focus on other parts of your business, like marketing or product development. Plus, since 3PLs specialize in logistics, they often have processes in place that speed up fulfillment and keep costs manageable, especially for high-volume sellers.

Cons: On the flip side, outsourcing does mean giving up a bit of control. You’re relying on a partner to maintain the quality and reliability of your fulfillment, which can sometimes lead to inconsistencies if expectations aren’t clearly set. Plus, you’ll need to find a trustworthy provider that aligns with your standards, which can take time. Weigh these pros and cons based on your specific business needs to see if outsourcing is the right fit.

For many Amazon FBM sellers, outsourcing fulfillment is a smart way to grow without sacrificing efficiency. Next, let’s cover some tips to help you succeed with Amazon FBM and keep your operations running smoothly.

Tips for Success with Amazon FBM

Ready to grow your Amazon FBM business? Here are a few ways to scale up smoothly and even expand beyond Amazon.

Scale Smartly with Better Inventory Management

As your business grows, keep things organized and efficient. Regularly check inventory levels, set reorder points, and use Amazon’s tools to track stock. Look for small ways to save time and costs, like streamlining packing steps or using Amazon’s Buy Shipping to simplify labeling. The more you optimize, the easier it is to handle more orders without adding stress or extra expenses.

Use Amazon FBM to Boost Other Channels

Amazon’s huge customer base can help you build brand awareness. Encourage customers to explore your brand’s own website or other platforms by including social media links or discount codes with each order. Building your brand on Amazon can be a gateway to loyal customers across multiple channels.

Expand Your Reach and Revenue

Once you’re established on Amazon, consider branching out to other marketplaces or ecommerce platforms. A well-organized fulfillment process makes it easy to handle orders from different channels, increasing sales and reaching a broader audience.

By scaling smartly and expanding your reach, Amazon FBM can help you grow your business both on and off Amazon. Let’s wrap up with a quick summary of the benefits of Amazon FBM and some final best practices.

Common Issues and Troubleshooting

Managing your own fulfillment with Amazon FBM comes with great perks, but it also means handling bumps along the way. Here’s how to tackle some of the most common issues FBM sellers face—and keep things running smoothly.

Keeping Tabs on Inventory

Nothing stalls a sale faster than realizing you’re out of stock. Avoid the last-minute scramble by setting up regular inventory checks and using Amazon’s Seller Central tools to track stock levels in real-time. Think of it like giving your inventory a quick “health check” every now and then! By keeping tabs on what you’ve got, you can stay ahead of demand and prevent the dreaded “sold out” message.

Speeding Up Shipping and Delivery

There’s nothing more frustrating to a customer than a delayed package. To keep shipping speedy, aim to process orders as soon as they come in. Amazon’s Buy Shipping feature is a great tool—it lets you print shipping labels in seconds and ensures that every order is trackable. If you’re using a third-party shipping partner, make sure they’re on board with your standards for fast, reliable delivery. Keeping things prompt and trackable goes a long way in earning positive reviews.

Handling Customer Service and Returns Like a Pro

When you’re managing customer service, a little friendliness goes a long way! Create a return policy that’s clear and easy for customers to follow, so there’s no guessing game. When questions or issues pop up, respond quickly—think of it as an opportunity to show off how awesome your customer support is. Friendly, efficient responses and smooth returns help turn potentially negative experiences into chances to build loyalty.

With a proactive approach to inventory, shipping, and customer service, you’ll be ready to handle whatever comes your way as an Amazon FBM seller. Let’s wrap things up with a look at the benefits and key takeaways for running a successful Amazon FBM business.

Conclusion

Amazon FBM (Fulfillment by Merchant) offers sellers the chance to take control of their fulfillment process, cut down on fees, and build a stronger, more flexible business. For sellers who value having a direct hand in storage, shipping, and customer service, FBM is a powerful option.

By implementing best practices—like optimizing inventory management, providing reliable shipping, and creating a positive customer experience—FBM sellers can run a smooth, efficient operation that meets customer expectations and encourages repeat business. Seller Fulfilled Prime can further boost visibility by reaching Prime customers without having to use Amazon’s fulfillment centers.

FBM is also a great way to scale your brand and explore sales opportunities beyond Amazon, allowing you to grow across multiple channels. With Amazon FBM, you have the flexibility to build a successful, customer-focused business while staying in control of every part of the fulfillment journey.