Amazon FBM Guide (Fulfilled By Merchant)
Amazon FBM Guide (Fulfilled By Merchant)
Amazon FBM (Fulfilled By Merchant) is the method of selling on Amazon where a seller lists their products on Amazon but handles storage, shipping, and customer support themselves.
Amazon FBM is an alternative and often an additional shipping method to Amazon FBA. (Fulfilled by Amazon)
With this Amazon FBM Guide, Amazon sellers can save time and money shipping products to their Amazon customers.
In over 10 years as a Fractional CMO, Amazon Consultant, and eCommerce Consultant, not to mention CEO, I’ve seen just about every mistake and the lessons from them. That means you get all the learnings without the scars.
Amazon FBM (Fulfilled by Merchant) can be intimidating for Amazon sellers, especially sellers who are not used to selling and fulfilling orders via their own eCommerce website.
From shipping templates to entering tracking numbers in a timely manner, there is a lot that can go wrong costing Amazon sellers time and money.
I can tell you firsthand that shipping and logistics can be challenging for sellers of any size.
That’s why I put together this in-depth Amazon FBM guide that you can use TODAY to save money, save time, and boost sales whether you’re an Amazon Seller Central seller, using Seller Fulfilled Prime, or selling Amazon B2B.
What is Amazon FBM?
Amazon Fulfilled by Merchant (FBM) is the fulfillment method where sellers fulfill orders from sales on the Amazon marketplace directly to customers.
Amazon FBM is the primary alternative to Amazon FBA (Fulfilled by Amazon) where sellers send in inventory to Amazon fulfillment centers and Amazon fulfills orders and handles customer service.
Sellers can manage Amazon FBM independently or by collaborating with a third-party logistics service provider.
Using Amazon FBM, sellers forego the Prime badge but can still choose to offer free shipping to customers as pictured here:
That said, Amazon sellers who meet strict shipping & handling time criteria, can still offer the Prime Badge through Amazon Seller Fulfilled Prime.
Amazon sellers using Amazon FBM are responsible for their own inventory storage, order fulfillment, returns, and customer service.
So, how does Amazon FBA work?
How Does Amazon FBM Work?
Amazon FBM works as the fulfillment method where Amazon sellers list their items for sale on the Amazon Marketplace and when an item is sold, their warehouse or logistics partner picks, packs, and ships the product to the customer.
This involves acknowledging the order and entering tracking information into Amazon Seller Central in a timely manner.
How To Get Started with Amazon FBM:
- Sign up for an Amazon Seller Central Account
- List your products on Amazon
- Enter your warehouse or logistic partners’ warehouse locations.
- Set up your shipping templates
- Add your return policy to Seller Central
- Acknowledge & ship orders
- Provide tracking information
If you’re shipping products yourself, you can buy shipping labels directly from Amazon Seller Central or use your own account with UPS, FedEx, UPS, or another 3rd party.
One of the benefits of using Amazon’s buy shipping services platform is the pre-negotiated industry-low rates with UPS.
If this is beginning to sound like a lot of work, we should weigh the Pros and Cons of Amazon FBM.
Pros & Cons of Amazon FBM
Amazon FBM can be a great choice for a number of scenarios:
- Amazon sellers who also sell on other channels like their own website who already use 3rd party logistics partners.
- Amazon sellers who are just starting out, haven’t sold on their own eCommerce website and want to get comfortable selling direct to consumer without a 3rd party logistics partner.
- Established Amazon sellers, comfortable with shipping and logistics who want to make sure they don’t miss out on orders when their Amazon FBA inventory has lapses in stock.
With that in mind, let’s take a look at the pros and cons of Amazon FBM from the perspective of a consultant for Amazon.
Pro’s & Con’s of Amazon FBM:
Pro’s:
- You can ship products in your own branded packaging.
- Lower costs on storage.
- Lower costs on picking and packing.
- Easier inventory tracking.
Cons:
- More difficult to win the Amazon Buy Box.
- You have to pick, pack, and ship products to customers yourself.
- You have to handle customer service.
- When products are lost in transit or damaged, it is your responsibility.
Pro’s and Con’s are just part of the Amazon Fulfilled By Merchant story, you also want to consider Amazon FBM fees.
Amazon FBM Fees
Fulfillment by Merchant, Amazon FBM only charges Amazon sellers the monthly Seller Central subscription fee, a small fee per each order, and a referral fee every time a sale is made.
This is one of the reasons brands decide to switch from FBA to FBM.
Amazon Seller Central Pro Seller Account Fee:
$39.99 / mo.
Per Item Selling Fee:
$0.99 per item sold but WAIVED if you have a Pro account.
Amazon Referral Fees:
| Fee Category | Referral fee percentages | Applicable minimum referral fee (applied on a per-unit basis unless otherwise noted) |
|---|---|---|
| Amazon Device Accessories | 45% | $0.30 |
| Amazon Explore | 30% for Experiences | $2.00 |
| Automotive and Powersports | 12% | $0.30 |
| Baby Products | 8% for products with a total sales price of $10.00 or less, and 15% for products with a total sales price greater than $10.00 | $0.30 |
| Backpacks, Handbags, and Luggage | 15% | $0.30 |
| Base Equipment Power Tools | 12% | $0.30 |
| Beauty, Health and Personal Care | 8% for products with a total sales price of $10.00 or less, and 15% for items with a total sales price greater than $10.00 | $0.30 |
| Business, Industrial, and Scientific Supplies | 12% | $0.30 |
| Clothing and Accessories | 17% | $0.30 |
| Compact Appliances | 15% for the portion of the total sales price up to $300.00, and 8% for any portion of the total sales price greater than $300.00 | $0.30 |
| Computers | 8% | $0.30 |
| Consumer Electronics2 | 8% | $0.30 |
| Electronics Accessories1 | 15% for the portion of the total sales price up to $100.00, and 8% for any portion of the total sales price greater than $100.00 | $0.30 |
| Everything Else3 | 15% | $0.30 |
| Eyewear | 15% | $0.30 |
| Fine Art | 20% for the portion of the total sales price up to $100.00, 15% for the portion of the total sales price greater than $100.00 up to $1,000.00, 10% for the portion of the total sales price greater than $1,000.00 up to $5,000.00, and 5% for the portion of the total sales price greater than $5,000.00 | — |
| Footwear | 15% | $0.30 |
| Full-Size Appliances | 8% | $0.30 |
| Furniture | 15% for the portion of the total sales price up to $200.00, and 10% for any portion of the total sales price greater than $200.00 | $0.30 |
| Gift Cards | 20% | — |
| Grocery and Gourmet | 8% for products with a total sales price of $15.00 or less, and 15% for products with a total sales price greater than $15.00 | — |
| Home and Kitchen | 15% | $0.30 |
| Jewelry | 20% for the portion of the total sales price up to $250.00, and 5% for any portion of the total sales price greater than $250.00 | $0.30 |
| Lawn and Garden | 15% | $0.30 |
| Lawn Mowers and Snow Throwers | 15% for products with a total sales price of up to $500.00 8% for products with a total sales price greater than $500.00 | $0.30 |
| Mattresses | 15% | $0.30 |
| Media – Books, DVD, Music, Software, Video | 15% | — |
| Musical Instruments and AV Production | 15% | $0.30 |
| Office Products | 15% | $0.30 |
| Pet Products | 15%, except 22% for veterinary diets | $0.30 |
| Sports and Outdoors | 15% | $0.30 |
| Tires | 10% | $0.30 |
| Tools and Home Improvement | 15% | $0.30 |
| Toys and Games | 15% | $0.30 |
| Video Game Consoles | 8% | — |
| Video Games and Gaming Accessories | 15% | — |
| Watches | 16% for the portion of the total sales price up to $1,500.00, and 3% for any portion of the total sales price greater than $1,500.00 | $0.30 |
Frequently Asked Questions
By the way, marketing in Amazon & eCommerce is complex, with lots of challenges that cost you time & money.
If you want to sell more and spend less, I’m a top-rated Fractional CMO, Amazon Consultant & eCommerce Consultant with 10+ years of Fractional CMO Services, Amazon Consulting & eCommerce Consulting experience, and come with a proven, one-of-a-kind system to drive sales.
Whether it’s consulting Amazon brands, working with great companies at my Fractional CMO Agency or helping grow eCommerce website sales at my eCommerce Consultancy I can help you sell more & spend less.
Get a quick free consultation.
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