Amazon’s marketplace remains the dominant force in online retail, but navigating its fulfillment options can be challenging, especially when deciding between Fulfilled by Amazon (FBA) and fulfilled by Merchant FBM. With Amazon FBM Fees undergoing adjustments in 2025, many sellers are reconsidering their fulfillment strategies to optimize costs and maintain a competitive edge. 

What Is Amazon Fulfilled by Merchant (FBM)? 

Amazon FBM meaning refers to the process where sellers store, pack, and ship products independently rather than relying on Amazon’s fulfillment centers.

Unlike FBA, where Amazon manages logistics, FBM gives sellers full control over inventory, order fulfillment, and customer service. While this method eliminates Amazon’s storage and fulfillment fees, it places the responsibility of handling logistics on the sellers. 

Why Is Amazon FBM So Popular?

Amazon FBM has grown in popularity due to several factors, including cost savings, inventory control, and the ability to offer customized packaging and branding. 

One of the primary reasons sellers choose FBM over FBA is the ability to reduce fulfillment costs, especially for low-margin, oversized, or customized products. 

FBM sellers only pay Amazon FBM fees, which are primarily based on referral fees and subscription costs rather than per-unit fulfillment charges. 

This is particularly beneficial for sellers managing bulk shipments, high-ticket items, or slow-moving inventory that would otherwise accumulate high storage fees under FBA. 

FBM also allows sellers to offer personalized customer service, branding, and custom packaging, which is not possible with sold by Amazon FBA orders. This additional flexibility makes FBM a preferred option for businesses that prioritize branding, customer relationships, and unique shipping strategies. 

Another reason for FBM’s popularity is Amazon’s increasing fulfillment constraints. Many sellers experienced delays, storage limitations, and increased FBA fees in recent years, making FBM management a viable alternative for maintaining business continuity. 

The ability to manage orders independently, rather than relying on Amazon seller prices for fulfillment, provides an additional advantage in terms of cost control and flexibility.  

How Does Amazon FBM Work?

FBM sellers manage their entire fulfillment process, from inventory storage to order dispatch and customer service. 

To successfully operate under Amazon FBM, sellers need to ensure that their fulfillment process aligns with Amazon’s guidelines for packaging, shipping timelines, and customer communication.

Store Inventory In Your Fulfillment Center 

When choosing FBM, sellers must have a reliable inventory management system to ensure stock availability and prevent order delays. 

Since Amazon does not store FBM products, sellers need to warehouse their inventory independently or partner with third-party logistics providers (3PLs) such as Forceget for storage and fulfillment solutions. 

Unlike FBA, where inventory is stored in Amazon’s fulfillment centers, FBM sellers need to track inventory levels, prevent stockouts, and manage inbound shipments to avoid disruptions. 

Using tools like Amazon manage orders within Seller Central login, sellers can monitor stock movement, set restock alerts, and automate order fulfillment processes. 

Dispatch Orders On Time 

Amazon has strict requirements for order processing and delivery times under FBM. 

Sellers need to ensure that orders are shipped within the specified timeframe to maintain a good account standing. Failure to meet Amazon’s on-time shipping requirements can result in penalties, loss of Buy Box eligibility, or even suspension of the merchant fulfilled network privileges. 

FBM sellers need to also handle returns and refunds independently. 

Unlike FBA, which provides automated returns processing, FBM sellers are responsible for setting up their return policies, refund timelines, and customer service interactions. 

Product Listing on Amazon 

Just like FBA sellers, FBM sellers need to optimize their product listings to attract customers. 

A well-structured product listing with optimized keywords, high-quality images, and competitive pricing is critical for ranking in Amazon search results. 

Amazon offers the Seller Central login portal, where FBM sellers can manage listings, track customer inquiries, and update stock availability. 

Ensuring accurate product descriptions, competitive pricing, and fast shipping options improves customer satisfaction and sales performance. 

Fulfillment by Merchant (FBM) vs. Fulfillment by Amazon (FBA)

The FBM vs FBA debate primarily centers around cost, convenience, and control. 

Amazon FBA vs FBM boils down to whether a seller prefers Amazon’s automated fulfillment system or independent logistics management. 

FBA is ideal for sellers looking for hands-off fulfillment, with Amazon handling warehousing, shipping, and customer service. However, FBA incurs storage fees, fulfillment charges, and long-term holding costs. 

FBM is suited for sellers who want more control over inventory, branding, and shipping logistics. While it eliminates FBA storage fees, FBM sellers need to cover shipping costs, manage customer inquiries, and ensure timely deliveries. 

When Should You Consider Amazon Fulfillment by Merchant

FBM is a strategic choice for sellers who: 

• Sell large, bulky, or customized products that incur high FBA storage fees. 
• Want more control over branding, packaging, and shipping logistics. 
• Have an established warehouse or fulfillment partner. 
• Sell low-margin products where Amazon FBA fees eat into profits. 
• Prefer to handle customer service and returns directly. 

Amazon FBM Fees 

FBM Referral Fees 2025 

Referral fees apply to all Amazon sales, regardless of fulfillment method. Amazon FBM fees include a referral fee, typically between 8% and 15%, depending on the product category. 

FBM Monthly Subscription Fee 2025 

Sellers using FBM Amazon meaning must pay either a $0.99 per-item fee (for individual sellers) or a $39.99 monthly fee (for professional sellers) under Amazon’s subscription model. 

FBM Per-Item Selling Fee 2025

Amazon charges a per-item selling fee for individual seller accounts. 

Professional sellers under FBM do not pay per-item fees but must cover FBM Amazon fees for shipping, packaging, and logistics. 

Other FBM Fees 2025

While Amazon FBM offers sellers more control over fulfillment, it also comes with additional fees that sellers need to factor into their cost structure. 

These costs vary depending on the type of product, shipping preferences, and seller fulfillment efficiency. 

One of the additional costs associated with FBM Amazon fees is the shipping cost. Unlike FBA, where shipping fees are included in the fulfillment fees, FBM sellers need to handle their own shipping logistics, meaning they either use Amazon’s Buy Shipping services or third-party carriers. 

Another key fee that FBM sellers need to consider is return processing costs. Since Amazon does not handle returns for FBM sellers as it does for FBA, the seller is responsible for managing all return requests, processing refunds, and handling potential disputes. 

The costs of return shipping, restocking, and damaged inventory can quickly add up, especially for categories with high return rates, such as apparel and electronics. Sellers need to decide whether they will cover return shipping costs or pass them on to customers, which can affect conversion rates and customer satisfaction. 

Grow With Forceget FBM – Best FBM Prices for Your Fulfillment Needs

Sellers looking to streamline their FBM management can benefit from partnering with a reliable 3PL provider like Forceget. 

With cost-effective fulfillment solutions, real-time inventory tracking, and seamless Amazon integrations, Forceget helps FBM sellers optimize their shipping and storage operations. 

Unlike Amazon transportation for merchants, which relies on Amazon’s fulfillment structure, Forceget empowers sellers with flexible fulfillment options, reducing Amazon FBM fees and maximizing profit margins. 

By integrating with Amazon’s Seller Central login, Forceget enables FBM sellers to manage orders efficiently, track shipments in real-time, and scale their fulfillment operations seamlessly. 

For sellers considering FBM vs FBA, partnering with Forceget provides the best cost-effective fulfillment strategy to reduce logistics expenses and increase profitability.