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Fulfillment by Merchant (FBM) on Amazon

Discover the flexibility and control offered by Fulfillment by Merchant (FBM) on Amazon. By managing shipping and customer service yourself, you can not only ensure quality, but also capitalize on promotional opportunities Amazon offers.

Whether you are new to Amazon or looking for ways to optimize your existing sales strategy, understanding and leveraging FBM can have a significant impact on your success. In this guide, we explain what Amazon FBM is, discuss the pros and cons, and help you determine if it’s the right choice for your business.

What is Amazon FBM?

Amazon FBM, or Fulfillment by Merchant, is a sales strategy on Amazon where you, the seller, take full responsibility for storing, packaging and shipping your products to customers.

Unlike Fulfillment by Amazon (FBA), where Amazon takes on these tasks, FBM gives you more control over inventory and customer service. This makes it an attractive option for vendors who have specific needs around packaging or who sell large, heavy or temperature-sensitive items that require special care.

What are the benefits of Amazon’s Fulfillment by Merchant?

Choosing FBM offers several advantages that are especially attractive to certain types of vendors. First, you maintain complete control over your inventory, which is important if your products require unique storage or shipping treatments.

In addition, FBM allows you to build direct relationships with your customers, which can contribute to customer loyalty and repeat purchases.

You also avoid the often higher costs associated with FBA, such as for warehousing and long-term storage costs, making FBM a cost-effective option for products with lower turnover rates.

Also of interest: information guide on Amazon Seller Fulfilled Prime

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Are there any drawbacks?

While FBM offers benefits, it also comes with some challenges. A major drawback is the learning curve: Amazon’s processes for FBA are highly optimized, and managing it yourself can be complex at first. Furthermore, without the Prime logo, sellers can attract less organic traffic, which requires additional marketing and customer service efforts.

When you manage fulfillment yourself, it can also be time-consuming, especially when packing and shipping orders. In addition, the cost of warehouse management and in-house fulfillment can increase significantly if you choose to outsource.

When to choose FBM Amazon?

Choosing FBM is ideal for vendors who have specific needs that are not well served by FBA. This may be the case, for example, if you sell products that are large, heavy or temperature-sensitive, requiring special shipping and storage procedures.

Also, if you want to maintain control over the customer service process or offer a unique unpacking experience with your own branded packaging, FBM may be preferable. In addition, FBM is a good option for sellers who want to minimize the costs associated with storing and managing inventory with Amazon’s FBA.

What does Fulfillment by Merchant cost?

Amazon FBM operates on a fee-based fee structure. There are three main types of fees you need to understand: referral fees (referral fees), a monthly subscription, and a per-item sales fee.

The referral fee is charged because your products are sold through Amazon and not through your own site. The amount of this fee depends on the type of product you sell and ranges from 6% to 45%. Below is a complete list of the categories and their percentages:

CategoriesReferral rateMinimum referral cost (€)
Accessories for Amazon devices45%€0.30
Amazon Explore30% for experiences€2.00
Automotive and Motorsports12%€0.30
Baby Products8% for products with a total selling price of €10.00 or less, and 15% for products with a selling price above €10.00€0.30
Backpacks, Handbags and Luggage15%€0.30
Basic Equipment Tools12%€0.30
Beauty, Health and Personal Care8% for products with a selling price of €10.00 or less, and 15% for items with a selling price above €10.00€0.30
Business, Industrial and Scientific Supplies12%€0.30
Clothing and Accessories17%€0.30
Compact Devices15% for the portion of the total sales price up to €300.00, and 8% for the portion of the sales price above €300.00€0.30

In addition, you pay a monthly subscription fee of $39.99 for the Pro FBM service, which allows you to avoid additional fees per item sold.

The sales fee per item is $0.99 for each item sold. This fee can be waived if you sign up for the Pro FBM plan.

What is the difference between Amazon FBM and Amazon FBA?

Choosing the right fulfillment strategy is crucial to your brand’s success on Amazon. The choice between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) depends on several factors specific to your business.

Amazon FBA may be a better choice for brands that:

  • Need storage space.
  • Want to outsource Fulfillment.
  • Have no customer service or returns management in-house.
  • Want to take advantage of the Prime badge benefit, which helps gain more visibility and trust in the Amazon marketplace.

Want to learn more about Fulfillment By Amazon? Then press the link to read more about this.

Amazon FBM may be better if you:

  • Have your own warehouse.
  • Ship large, heavy and/or temperature-sensitive items that require special handling.
  • Want a responsive and dedicated fulfillment partner.
  • Want to use packaging with your own company branding, or if you want to curate the unboxing experience.
  • Not wanting to deal with complex pricing structures and storage costs.

Is Amazon MFN the same as Amazon FBM?

Amazon MFN, which stands for Merchant Fulfilled Network, is another name for Fulfillment by Merchant (FBM). Both terms refer to the same process in which the seller is responsible for storing, packaging, and shipping products directly to customers. This is in contrast to Fulfillment by Amazon (FBA), where Amazon takes on these tasks. The use of the term MFN emphasizes the network capability of vendors to manage their own fulfillment processes.

Start selling on Amazon through e-tailize

Are you ready to begin your sales adventure on Amazon and want to leverage e-tailize’ s services for a streamlined experience? Whether you choose FBM or FBA, e-tailize provides the support you need to be successful. From setting up your sales account to managing your inventory, e-tailize works with you to implement the best strategies for your business. Start selling on Amazon today by signing up with e-tailize and discover the benefits of having an expert as a partner in your e-commerce venture.

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