What is FBM (Fulfilled by Merchant)?
Fulfilled by Merchant (FBM) is an Amazon fulfillment method where the seller is the one responsible for shipping orders, inventory storage, and customer support.
Once a customers orders product from you, you must ship the product based on the delivery time that was requested by the customer. You are able to purchase shipping labels directly through Amazon, or you can purchase them yourselves. It is required that you provide tracking on any shipped orders. You can also outsource all of this to a 3rd-party logistics company that can handle the whole process for you.
The main difference is whether you are having Amazon handle all your shipping, storage and customer support needs, or if you are doing it yourself or through a 3rd-party logistics company. There are successful sellers that use both, but if you are new to e-commerce selling then Amazon FBA is likely the best option for you.
Yes! You can change your fulfillment method anytime through Seller Central. You do this by going to ‘Inventory’, go to the product you want to change the fulfillment method for, and then click ‘Edit’ and you will see the option ‘Change to Fulfilled by Merchant’ or ‘Change to Fulfilled by Amazon’.
Only a small amount of Amazon sellers solely use Amazon FBM. Around 30% of Amazon sellers utilize both FBA and FBM, and a large majority of Amazon sellers use FBA.
If a customer wants to return a product they bought, the Amazon seller is responsible for the return shipping costs.