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What is Fulfilled by Merchant

Amazon Fulfilled by Merchant is a fulfillment method in which an Amazon seller is responsible for fulfilling their products purchased on Amazon. FBM can be managed through a seller directly or by partnering with a logistics service provider. The merchant is responsible for inventory storage, order fulfillment, returns, and customer service this way taking full ownership and control over the processes.

How does it works?

The merchant fulfills orders when their products are sold on Amazon, either through self-fulfilment (when an ecommerce business chooses to keep inventory and processes like packing boxes and shipping orders in-house) or using a third party logistic service. Amazon FBM is usually the only fulfillment method available to new merchants selling on Amazon, as FBA requires a few approvals and takes time to set up. Small sellers can often fulfill orders themselves, while larger sellers are more likely to utilize a logistics network to fulfill orders.

Advantages of FBM:

Amazon Fulfilled by Merchant is often the fulfillment method of choice for sellers just getting started on Amazon. Using this service, you will get:

  • Less fees – Amazon FBA fees are loftier than FBM. With Amazon Fulfilled by Merchant, sellers have a monthly subscription fee, a small fee per order placed, and a referral fee for each order.
  • Less requirements – Amazon is known for changing its FBA requirements without giving sellers enough time to adapt to changes. These requirements can be difficult for sellers fulfilling on Amazon. With FBM, there are fewer rules and less penalties for not meeting the standards for each order.
  • Greater control of your business -With Amazon FBA, you cannot depend on branding. Customers receive a box with Amazon’s branding — not yours. Customers may associate your products with Amazon and will communicate with Amazon’s customer support if there are issues. When you use FBM for the order fulfilment process, you can better ensure you are providing the customer experience you want.
  • Better support – For support, Amazon is known for being hard to get in touch with a human being. When you provide the support to the customers, you are responsible for the replies, services and customer satisfaction – all is in your hands and you are aware of what is going on.

Disadvantages of FBM:

Amazon is the best at fulfilling Amazon orders, so you will loose more giving up their perfected process. Moreover, FBA sales are higher then Amazon FBM sales.

  • Less trust in seller – One of the main downsides to using Amazon FBM over FBA is less trust in you as a seller – you are just “sold by X” and you are not “Amazon, sold by X”.
  • No Prime badge – Offering items as FBM excludes the Prime badge and you are not having Prime-eligible products. The point of Amazon Prime is to get orders delivered in two days.  However, there are ways to compensate that. One more disadvantage of not having the Prime-badge is that you will not be participation in Prime-oriented Amazon marketing strategies and better traffic.
  • More time on fulfillment – If you self-fulfill your orders, you will spend more operational time on picking and packing, while otherwise you can use your time on strategic planning, growth and other higher-value tasks.
  • More costs for self-fulfilling – if you are dealing eternally with your orders, you will meet higher costs – for packing materials, for warehousing, for shipping quotes. Of course at the very beginning this is the start. Then at some point you need to consider outsourcing.


Analysis of FBM possibilities

You can not start selling on Amazon before knowing what will cost you, what shipping options you will have to provide and what delivery services to choose. We will analyze ranks and selling prices and will advise on your opportunities.

Order management​

We can manage your orders instead of you. We are aware which service providers to use to follow Amazon selling policies, how to maintain your Order defect rate in good condition, how to maintain your On-time delivery rate.

Customer Service

Essential part of your Fulfilled by Merchant orders is the precise customer support. Receiving negative feedbacks and having unsatisfied customers will lead to less orders and in some moment may reflect your selling account.

Stats and Reports

Managing your orders, we will keep you informed for your fulfilled orders, numbers, inventory levels, also you will quickly and efficiently see trends in your business.

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