What is Amazon FBM?

Amazon FBM, short for Fulfillment by Merchant, is a fulfillment option on the Amazon marketplace where sellers are responsible for storing their inventory, packaging, and shipping their products directly to customers.

Unlike Fulfillment by Amazon (FBA), where Amazon handles the entire logistics process, FBM gives sellers more control over their inventory and shipping operations. This model can be advantageous for sellers who prefer to manage their logistics, have lower storage and shipping costs than Amazon's fees, or sell products that are bulky, have special handling needs, or are slow-moving and would incur high storage fees in Amazon's fulfillment centers.

In the FBM model, when a customer purchases a product, the seller receives the order and is responsible for the entire fulfillment process, including packing the product and arranging for its shipment. Sellers must also handle customer service and returns for their FBM sales. This approach requires sellers to be efficient in their fulfillment processes to meet Amazon's delivery expectations and maintain high levels of customer satisfaction.

FBM can be a more cost-effective option for certain sellers, particularly those with the infrastructure to manage fulfillment at a lower cost or with products that do not fit well into the FBA model. However, it also means that sellers do not have access to Prime customers unless they qualify for Seller Fulfilled Prime, a program that allows FBM sellers to offer Prime benefits by meeting Amazon's delivery standards. Sellers opting for FBM need to carefully manage their fulfillment processes to ensure competitive delivery times, maintain customer satisfaction, and comply with Amazon's performance metrics.

If you're interested in investing in this business model, you can use our site to browse Amazon FBM businesses for sale.