Amazon FBM was introduced in the early days of Amazon as a way for sellers to list their products on the platform without having to rely on Amazon’s fulfillment services. 

As Amazon grew, FBA became a more popular option for many sellers, but FBM has continued to be a viable choice for those who prefer to maintain control over their inventory and shipping processes. 

What is Amazon Fulfillment by Merchant FBM?

Amazon FBM, or Fulfillment by Merchant, is a service offered by Amazon that allows sellers to store and ship their products directly to customers. 

Unlike FBA (Fulfillment by Amazon), where Amazon handles the entire fulfillment process, FBM puts the responsibility on the seller. 

While Amazon doesn’t publicly disclose specific statistics about FBM usage, it’s estimated that a significant number of sellers still use FBM, especially those with smaller inventories or who prioritize brand control. 

The popularity of FBM has remained relatively consistent over the years, despite the growth of FBA. 

Key Differences Between FBM and FBA

In FBM, you are responsible for all aspects of fulfillment, from storing and packing your products to shipping them to customers and handling customer service inquiries, giving you complete control over your inventory and shipping processes, allowing you to customize your operations to meet your specific needs. 

In contrast, FBA takes care of the entire fulfillment process, freeing you up to focus on other aspects of your business, such as marketing and product development. 

With FBM, you are responsible for storing your inventory in your own warehouse or fulfillment center. This gives you greater flexibility in terms of location and storage conditions. However, it also requires you to manage your inventory levels and ensure that you have enough stock to meet customer demand. 

With FBA, Amazon stores your products in their fulfillment centers, which can be a significant advantage if you have a large or seasonal inventory. 

FBM requires you to arrange shipping for your orders, which can be time consuming and costly. You will need to choose a shipping carrier, negotiate rates, and ensure that your products are packaged and labeled correctly. FBA uses Amazon’s extensive shipping network, which can provide significant cost savings and faster delivery times. 

In FBM, you are responsible for handling customer inquiries, returns, and refunds, being a time-consuming and stressful task, especially if you have a large number of customers. FBA offers 24/7 customer support, which can help you reduce the burden of customer service and improve customer satisfaction. 

What are the Advantages of Amazon FBM 

Fulfillment by Merchant (FBM) offers sellers greater control over their inventory, pricing, and shipping processes. This can be beneficial for businesses that prioritizes brand consistency or have unique shipping requirements. However, FBM also comes with increased costs and time commitments, as sellers are responsible for managing their own inventory, shipping, and customer service. 

What are the Disadvantages of Amazon FBM?

While FBM generally has lower fees compared to Fulfillment by Amazon (FBA), sellers may lead to higher costs for storage, shipping, and customer service. Additionally, managing these aspects of the business can be time-consuming, requiring sellers to allocate resources for inventory management, shipping logistics, and customer support. 

To ensure a positive customer experience, sellers must maintain high standards for shipping and customer service, which can be challenging without dedicated resources. 

FBM and Amazon Seller Central

Amazon Seller Central is a powerful tool for FBM sellers. It provides a centralized platform for managing your products, orders, and inventory. 

Some of the key features are:

Product Listing Management: Create, edit, and manage your product listings. 

Order Management: Track and fulfill orders, managing returns, and issue refunds. 

Inventory Management: Monitor your inventory levels, set up low-stock alerts, and manage replenishment. 

Reporting and Analytics: Access detailed reports on your sales performance, customer behavior, and inventory levels. 

Customer Service Tools: Communicate with customer, respond to inquiries, and revolse issues. 

How to Get Started with Amazon FBM 

To start using Amazon FBM, you’ll need to create a seller account on Amazon Seller Central. 

Go to sellercentral.amazon.ccom and click on “Sell on Amazon.” 

Select the appropriate selling plan based on your business needs. Amazon offers individual and professional selling plans. 

Fill out the required information, including your business details, contact information, and payment methods. Amazon might require you to verify your identity to prevent fraud. 

Once you have a seller account, you can start listing your products. This involves creating product listings that include detailed information about your products. 

Listing Your Products 

A clear and concise title that accurately describes your product. A detailed description that highlights the features and benefits of your product. 

High-quality images that showcase your product from different angles. 

Assign your product to the appropriate categories to make it easier for customers to find. 

Set your products’ price, taking into account factors such as your costs, competition, and desired profit margins. 

Managing Your Inventory

As an FBM seller, you are responsible for managing your own inventory, involving tracking your stock levels, replenishing inventory as needed, and ensuring that your products are always available for shipping. 

Consider using inventory management tools to track your stock levels and automate reordering processes. 

Keep an eye out on your sales data to identify popular products and adjust your inventory accordingly. 

Create alerts to notify you when your inventory levels are running low.