{"id":1131,"date":"2023-10-02T15:59:19","date_gmt":"2023-10-02T15:59:19","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/amazon-fulfilled-by-merchant-fbm\/"},"modified":"2025-09-26T17:08:09","modified_gmt":"2025-09-26T17:08:09","slug":"amazon-fulfilled-by-merchant-fbm","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/amazon-fulfilled-by-merchant-fbm\/","title":{"rendered":"How Does Amazon FBM Work in 2026? Guide + Amazon FBM vs. FBA\u00a0"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#h-what-is-amazon-fulfilled-by-merchant-fbm\">What is Amazon Fulfilled by Merchant (FBM)?<\/a><\/p>\n\n\n\n<p><a href=\"#h-how-does-amazon-fbm-work\">How does Amazon FBM work?<\/a><\/p>\n\n\n\n<p><a href=\"#h-fulfillment-by-merchant-vs-fulfillment-by-amazon\">Fulfilment by Merchant vs. Fulfilment by Amazon<\/a><\/p>\n\n\n\n<p><a href=\"#h-the-pros-and-cons-of-amazon-fulfilled-by-merchant\">The pros and cons of Amazon Fulfilled by Merchant<\/a><\/p>\n\n\n\n<p><a href=\"#h-amazon-fbm-fees\">Amazon FBM fees<\/a><\/p>\n\n\n\n<p><a href=\"#h-save-time-cut-shipping-costs-and-speed-up-deliveries-with-shipbob\">Save time, cut shipping costs, and speed up deliveries with ShipBob<\/a><\/p>\n\n\n\n<p><a href=\"#h-conclusion\">Conclusion<\/a><\/p>\n<\/div>\n\n\n\n<p>Amazon is the biggest ecommerce site in the world. Having your products listed and sold on the marketplace can get you in front of a large audience. Amazon gives sellers the opportunity to fulfil orders themselves or let Amazon handle fulfilment.&nbsp;<\/p>\n\n\n\n<p>In fact, Amazon sellers can use a combination of the following fulfilment methods:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fulfilled by Merchant (FBM) \u2014 also known as Merchant Fulfilled Network (MFN)&nbsp;<\/li>\n\n\n\n<li>Fulfilled by Amazon (FBA)&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/blog\/multi-channel-fulfillment\/\" target=\"_blank\" rel=\"noreferrer noopener\">Multi-Channel Fulfilment<\/a> (MCF)&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/blog\/seller-fulfilled-prime\/\" target=\"_blank\" rel=\"noreferrer noopener\">Seller Fulfilled Prime<\/a> (SFP)&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/blog\/amazon-direct-fulfillment\/\" target=\"_blank\" rel=\"noreferrer noopener\">Amazon Direct Fulfilment<\/a>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>While each acronym is different, all options enable Amazon sellers to get their orders to customers\u2019 doors. Although FBA is the most common method, depending on your business model, needs, and goals, it may be time to rethink your brand\u2019s <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/\" target=\"_blank\" rel=\"noreferrer noopener\">ecommerce fulfilment strate<\/a><a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/\" target=\"_blank\" rel=\"noreferrer noopener\">gy<\/a>.&nbsp;<\/p>\n\n\n\n<p>In this post, we\u2019ll go into the details of how Amazon Fulfilled by Merchant works, the pros and cons of Amazon orders that are fulfilled by the merchant, alternatives to Amazon FBM, and whether Amazon Fulfilled by Merchant (or other Amazon fulfilment services) can truly grow your business.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-amazon-fulfilled-by-merchant-fbm-nbsp\">What is Amazon Fulfilled by Merchant (FBM)?&nbsp;<\/h2>\n\n\n\n<p>Amazon Fulfilled by Merchant is a fulfilment method in which an Amazon seller is responsible for fulfilling their products purchased on Amazon. FBM can be managed through a seller directly or by partnering with a third-party <a href=\"https:\/\/www.shipbob.com\/blog\/logistics-service-provider\/\" target=\"_blank\" rel=\"noreferrer noopener\">logistics service provider<\/a>.&nbsp;<\/p>\n\n\n\n<p>Instead of your products having Prime status and you using either Amazon\u2019s fulfilment centres to store inventory while relying on their team to handle fulfilment, the merchant is responsible for <a href=\"https:\/\/www.shipbob.com\/warehouse-operations\/inventory-storage\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory storage<\/a> and <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-placement\/\" target=\"_blank\" rel=\"noreferrer noopener\">placement<\/a>, order fulfilment, returns, and customer service.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-is-amazon-fbm-popular-nbsp\">Why is Amazon FBM popular?&nbsp;<\/h3>\n\n\n\n<p>Although your Amazon products lose Prime status with Amazon FBM, there are many reasons why FBM may be the better choice for a business.&nbsp;<\/p>\n\n\n\n<p>Amazon is an enormous ecommerce platform \u2013 and as a result, merchants are a small fish in a big pond, and are often at the mercy of the platform\u2019s decisions. In the past, Amazon has removed Prime badges and even product <a href=\"https:\/\/www.shipbob.com\/blog\/amazon-listing\/\" target=\"_blank\" rel=\"noreferrer noopener\">listings<\/a> to cope with unprecedented order volumes. At one point, Amazon even <a href=\"https:\/\/www.modernretail.co\/retailers\/as-problems-mount-sellers-find-fewer-avenues-to-communicate-with-amazon\/\" target=\"_blank\" rel=\"noreferrer noopener\">temporarily shut down<\/a> its merchant support phone number, leaving brands unable to get in touch with Amazon support.&nbsp;<\/p>\n\n\n\n<p>To ensure that their orders get fulfilled and arrive to customers on time, many FBA sellers have flocked to Amazon FBM as a more reliable <a href=\"https:\/\/www.shipbob.com\/blog\/alternative-to-amazon-fba\/\" target=\"_blank\" rel=\"noreferrer noopener\">alternative<\/a>.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-does-amazon-fbm-work-nbsp\">How does Amazon FBM work?&nbsp;<\/h2>\n\n\n\n<p>Fulfilled by Merchant works exactly as it sounds: The merchant fulfils orders when their products are sold on Amazon, either through <a href=\"https:\/\/www.shipbob.com\/blog\/self-fulfillment\/\" target=\"_blank\" rel=\"noreferrer noopener\">self-fulfilment<\/a> or a fulfilment service.&nbsp;<\/p>\n\n\n\n<p>Amazon FBM is usually the only fulfilment method available to new merchants selling on Amazon, as FBA requires a few approvals, demonstrated <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-turnover-ratio\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory turnover<\/a>, and takes time to set up. Small sellers can often fulfil orders themselves, while larger sellers are more likely to utilise a <a href=\"https:\/\/www.shipbob.com\/logistics-network\/\">logistics network<\/a> to fulfil orders.&nbsp;<\/p>\n\n\n\n<p>Here are a few steps to getting Amazon FBM up and running (and be sure to read these <a href=\"https:\/\/www.shipbob.com\/blog\/common-mistakes-amazon-avoid\/\" target=\"_blank\" rel=\"noreferrer noopener\">common Amazon mistakes<\/a> you should avoid):&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-list-your-products-on-amazon-nbsp\">List your products on Amazon&nbsp;<\/h3>\n\n\n\n<p>Once you create an account with Amazon Seller Central, you can begin listing your products. Make sure to include the information needed on your listings to help improve your chances of conversion using the right imagery, videos, copy, and more.&nbsp;<\/p>\n\n\n\n<p>Be sure to have the proper <a href=\"https:\/\/www.shipbob.com\/blog\/amazon-marketing-strategy\/\" target=\"_blank\" rel=\"noreferrer noopener\">Amazon marketing strategy<\/a>. On such a popular marketplace, you\u2019re bound to have competition \u2013 so you\u2019ll need to make strategic decisions about where and how to spend your ad dollars.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-warehouse-products-in-your-own-fulfillment-center-nbsp\">Warehouse products in your own fulfilment centre&nbsp;<\/h3>\n\n\n\n<p>Depending on the number of <a href=\"https:\/\/www.shipbob.com\/blog\/differences-warehouse-fulfillment-center\/\" target=\"_blank\" rel=\"noreferrer noopener\">fulfilment centres<\/a> you have at your disposal, you may be able to distribute your products to strategic locations so you can save on <a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/calculate-shipping-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">shipping costs<\/a> and reduce your average <a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/shipping-zones\/\" target=\"_blank\" rel=\"noreferrer noopener\">shipping zone<\/a>. If your business is still small, a storage centre or even your home can be a short-term solution for <a href=\"https:\/\/www.shipbob.com\/blog\/warehousing\/\" target=\"_blank\" rel=\"noreferrer noopener\">warehousing<\/a>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-ship-orders-out-on-time-nbsp\">Ship orders out on time&nbsp;<\/h3>\n\n\n\n<p>Once you receive an order notification, you must ship the product based on the selected delivery timeframe from the customer. Amazon provides an estimated delivery time to buyers on the offer and <a href=\"https:\/\/www.shipbob.com\/blog\/checkout-page-optimization\/\" target=\"_blank\" rel=\"noreferrer noopener\">checkout pages<\/a> so customers know when to expect an item they have ordered from you. This takes handling and transit times into consideration. You can modify your <a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/shipping-handling\/\" target=\"_blank\" rel=\"noreferrer noopener\">shipping and handling<\/a> time and transit time to better set customer expectations.&nbsp;<\/p>\n\n\n\n<p>You can buy <a href=\"https:\/\/www.shipbob.com\/blog\/fulfillment-basics-how-do-shipping-labels-work\/\" target=\"_blank\" rel=\"noreferrer noopener\">shipping labels<\/a> through Amazon or on your own. Either way, you must always provide <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-order-tracking\/\" target=\"_blank\" rel=\"noreferrer noopener\">ecommerce order tracking<\/a> for the customer.&nbsp;<\/p>\n\n\n\n<p>Finally, be sure to update your Amazon selling account with valid instructions for <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-returns\/\" target=\"_blank\" rel=\"noreferrer noopener\">ecommerce returns<\/a> for all Fulfilled by Merchant orders. When you approve a buyer\u2019s request to return a product, Amazon sends the buyer a <a href=\"https:\/\/www.shipbob.com\/blog\/return-labels\/\" target=\"_blank\" rel=\"noreferrer noopener\">return label<\/a> with your default return address, which must be a valid return address.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-fulfillment-by-merchant-vs-fulfillment-by-amazon-nbsp\">Fulfilment by Merchant vs. Fulfilment by Amazon&nbsp;<\/h2>\n\n\n\n<p>In ecommerce, market conditions and individual circumstances are constantly changing. So whether you\u2019re new to <a href=\"https:\/\/www.ecommerceceo.com\/how-to-become-an-amazon-seller\/\">selling on Amazon<\/a> or you\u2019ve been on the platform for years, it can sometimes be hard to know whether FBA or FBM is the better option for your brand.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Below, we break down some key factors to consider when finding your Amazon fulfilment fit.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-should-i-consider-amazon-fba-nbsp-nbsp\">When should I consider Amazon FBA?&nbsp;&nbsp;<\/h3>\n\n\n\n<p>Amazon FBA may be a good choice for your ecommerce brand if you:&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Need warehousing for inventory storage and order fulfilment*&nbsp;&nbsp;<\/li>\n\n\n\n<li>Are looking to outsource fulfilment and save time*&nbsp;<\/li>\n\n\n\n<li>Don\u2019t have customer service or returns management in-house*&nbsp;<\/li>\n\n\n\n<li>Want the Prime badge&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>*These benefits are also achievable through FBM when you outsource fulfilment to a logistics provider.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-should-i-consider-amazon-fbm-nbsp\">When should I consider Amazon FBM?&nbsp;<\/h3>\n\n\n\n<p>Amazon FBM may be better for your brand if you:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Have your own warehouse&nbsp;<\/li>\n\n\n\n<li>Are shipping large, heavy, and\/or temperature-sensitive items&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Want a responsive and dedicated fulfilment partner&nbsp;<\/li>\n\n\n\n<li>Use packaging with your business\u2019s branding (rather than Amazon-branded standard boxes) or are looking to curate the unboxing experience&nbsp;<\/li>\n\n\n\n<li>Don\u2019t want to deal with complex pricing structures and extra fees&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-amazon-fbm-drawbacks-you-need-to-know-nbsp\">Amazon FBM drawbacks you need to know&nbsp;<\/h3>\n\n\n\n<p>There can be some downsides to using Amazon FBM, particularly if you don\u2019t have an experienced fulfilment partner handling your fulfilment for you. Some of the main challenges FBM sellers face include:&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Learning curve:<\/strong> Amazon is the best at fulfilling Amazon orders, so giving up their perfected process may be tough. Additionally, FBA sales do not always translate to Amazon FBM sales.&nbsp;<\/li>\n\n\n\n<li><strong>No Amazon Prime badge: <\/strong>Amazon FBM sellers must be prepared to drive organic traffic without the Prime designation that helps them succeed on the Amazon marketplace.&nbsp;<\/li>\n\n\n\n<li><strong>Spend more time on fulfilment (if self-fulfilling):<\/strong> If you\u2019re managing your Amazon FBM orders, you can end up spending a lot of time packing boxes. There are <a href=\"https:\/\/www.shipbob.com\/blog\/hidden-costs-self-fulfillment-beyond-shipping-postage\/\">hidden fees in self-fulfilment<\/a> including the opportunity cost of you not completing higher-value tasks.\u00a0<\/li>\n\n\n\n<li><strong>Costs of warehousing and <\/strong><a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/in-house-fulfillment\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>in-house fulfilment<\/strong><\/a><strong> (if outsourcing):<\/strong> <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/outsourced-fulfillment\/\" target=\"_blank\" rel=\"noreferrer noopener\">Outsourcing fulfilment<\/a> to the pros can be costly, especially if you have a lot of inventory sitting and not selling.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-benefits-of-amazon-fulfilled-by-merchant-nbsp\">Benefits of Amazon Fulfilled by Merchant&nbsp;<\/h2>\n\n\n\n<p>There are also many upsides to using Amazon FBM for your ecommerce fulfilment. When debating between FBA and FBM, don\u2019t forget to consider these benefits.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-access-amazon-s-customers-with-fewer-fees-nbsp\">Access Amazon\u2019s customers with fewer fees&nbsp;<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/blog\/amazon-fba-fees\/\" target=\"_blank\" rel=\"noreferrer noopener\">Amazon FBA fees<\/a> are extensive, and can be expensive. Amazon Fulfilled by Merchant, on the other hand, only charges sellers a monthly subscription fee, a small fee per order placed, and a referral fee for each order. This way, Amazon sellers can still take advantage of the valuable real estate on Amazon\u2019s high trafficked site, without many extra fees.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-avoid-amazon-s-strict-fba-requirements-nbsp\">Avoid Amazon\u2019s strict FBA requirements&nbsp;<\/h3>\n\n\n\n<p>Amazon is known for changing its FBA requirements without giving sellers enough time to adapt to changes (and they get much higher during Q4). These requirements can be a hassle for merchants fulfilling on Amazon.&nbsp;&nbsp;<\/p>\n\n\n\n<p>With FBM, there are fewer rules and penalties for failing to comply with their strict standards for each Amazon order.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-retain-greater-control-of-your-business-nbsp\">Retain greater control of your business&nbsp;<\/h3>\n\n\n\n<p>With Amazon FBA, your branding takes a hit. Customers receive a box with Amazon\u2019s branding \u2014 not yours. Customers may associate your products with Amazon and will communicate with Amazon\u2019s customer support if there are issues.&nbsp;&nbsp;<\/p>\n\n\n\n<p>When you use FBM for the <a href=\"https:\/\/www.shipbob.com\/blog\/order-fulfillment\/\" target=\"_blank\" rel=\"noreferrer noopener\">order fulfilment<\/a> process, you gain more complete control of your operations and can better ensure you are providing the customer experience you want.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-get-better-support-nbsp\">Get better support&nbsp;<\/h3>\n\n\n\n<p>For support, Amazon is known for being hard to get in touch with a human being. If you opt to use Amazon FBM instead, you can partner with a professional fulfilment company that can provide quicker and more thorough support when issues arise.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-amazon-fbm-fees-nbsp\">Amazon FBM fees&nbsp;<\/h2>\n\n\n\n<p>Amazon FBM works on a fee-based structure, and there are three main fees: referral fees, a monthly subscription fee, and a fee for each item sold.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-referral-fees-nbsp\">Referral fees&nbsp;<\/h3>\n\n\n\n<p>Since your products are listed on Amazon and not your own site, each sale made is considered a referral. The total referral fee will depend on the type of product you sell, and can range from 6% to 45%.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Fee Category<\/strong>&nbsp;<\/td><td><strong>Referral fee percentages<\/strong>&nbsp;<\/td><td><strong>Applicable minimum referral fee<\/strong>&nbsp;<strong>(applied on a per-unit basis unless otherwise noted)<\/strong>&nbsp;<\/td><\/tr><tr><td>Amazon Device Accessories&nbsp;<\/td><td>45%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Amazon Explore&nbsp;<\/td><td>30% for Experiences&nbsp;<\/td><td>$2.00&nbsp;<\/td><\/tr><tr><td>Automotive and Powersports&nbsp;<\/td><td>12%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Baby Products&nbsp;<\/td><td>8% for products with a total sales price of $10.00 or less, and&nbsp;&nbsp;15% for products with a total sales price greater than $10.00&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Backpacks, Handbags, and Luggage&nbsp;<\/td><td>15%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Base Equipment Power Tools&nbsp;<\/td><td>12%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Beauty, Health and Personal Care&nbsp;<\/td><td>8% for products with a total sales price of $10.00 or less, and&nbsp;&nbsp;15% for items with a total sales price greater than $10.00&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Business, Industrial, and Scientific Supplies&nbsp;<\/td><td>12%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Clothing and Accessories&nbsp;<\/td><td>17%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Compact Appliances&nbsp;<\/td><td>15% for the portion of the total sales price up to $300.00, and&nbsp;&nbsp;8% for any portion of the total sales price greater than $300.00&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Computers&nbsp;<\/td><td>8%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Consumer Electronics<sup>2<\/sup>&nbsp;<\/td><td>8%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Electronics Accessories<sup>1<\/sup>&nbsp;<\/td><td>15% for the portion of the total sales price up to $100.00, and&nbsp;&nbsp;8% for any portion of the total sales price greater than $100.00&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Everything Else<sup>3<\/sup>&nbsp;<\/td><td>15%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Eyewear&nbsp;<\/td><td>15%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Fine Art&nbsp;<\/td><td>20% for the portion of the total sales price up to $100.00,&nbsp;&nbsp;15% for the portion of the total sales price greater than $100.00 up to $1,000.00,&nbsp;&nbsp;10% for the portion of the total sales price greater than $1,000.00 up to $5,000.00, and&nbsp;&nbsp;5% for the portion of the total sales price greater than $5,000.00&nbsp;<\/td><td>&#8212;&nbsp;<\/td><\/tr><tr><td>Footwear&nbsp;<\/td><td>15%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Full-Size Appliances&nbsp;<\/td><td>8%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Furniture&nbsp;<\/td><td>15% for the portion of the total sales price up to $200.00, and&nbsp;&nbsp;10% for any portion of the total sales price greater than $200.00&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Gift Cards&nbsp;<\/td><td>20%&nbsp;<\/td><td>&#8212;&nbsp;<\/td><\/tr><tr><td>Grocery and Gourmet&nbsp;<\/td><td>8% for products with a total sales price of $15.00 or less, and&nbsp;&nbsp;15% for products with a total sales price greater than $15.00&nbsp;<\/td><td>&#8212;&nbsp;<\/td><\/tr><tr><td>Home and Kitchen&nbsp;<\/td><td>15%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Jewelry&nbsp;<\/td><td>20% for the portion of the total sales price up to $250.00, and&nbsp;&nbsp;5% for any portion of the total sales price greater than $250.00&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Lawn and Garden&nbsp;<\/td><td>15%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Lawn Mowers and Snow Throwers&nbsp;<\/td><td>15% for products with a total sales price of up to $500.00&nbsp;&nbsp;8% for products with a total sales price greater than $500.00&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Mattresses&nbsp;<\/td><td>15%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Media &#8211; Books, DVD, Music, Software, Video&nbsp;<\/td><td>15%&nbsp;<\/td><td>&#8212;&nbsp;<\/td><\/tr><tr><td>Musical Instruments and AV Production&nbsp;<\/td><td>15%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Office Products&nbsp;<\/td><td>15%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Pet Products&nbsp;<\/td><td>15%, except 22% for veterinary diets&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Sports and Outdoors&nbsp;<\/td><td>15%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Tires&nbsp;<\/td><td>10%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Tools and Home Improvement&nbsp;<\/td><td>15%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Toys and Games&nbsp;<\/td><td>15%&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><tr><td>Video Game Consoles&nbsp;<\/td><td>8%&nbsp;<\/td><td>&#8212;&nbsp;<\/td><\/tr><tr><td>Video Games and Gaming Accessories&nbsp;<\/td><td>15%&nbsp;<\/td><td>&#8212;&nbsp;<\/td><\/tr><tr><td>Watches&nbsp;<\/td><td>16% for the portion of the total sales price up to $1,500.00, and&nbsp;&nbsp;3% for any portion of the total sales price greater than $1,500.00&nbsp;<\/td><td>$0.30&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"has-text-align-center\">Source: <a href=\"https:\/\/sellercentral.amazon.com\/help\/hub\/reference\/external\/200336920\" target=\"_blank\" rel=\"noreferrer noopener\">Amazon Seller Central<\/a>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-monthly-subscription-fee-nbsp\">Monthly subscription fee&nbsp;<\/h3>\n\n\n\n<p>Amazon offers a subscription fee for the Pro FBM service that costs $39.99 per month. By subscribing to this plan, you can waive additional fees when a product is sold.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-per-item-selling-fee-nbsp\">Per-item selling fee&nbsp;<\/h3>\n\n\n\n<p>The per-item selling fee is $0.99 for each item sold. This fee can be waived if you sign up for the Pro FBM plan.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-other-fees-you-ll-encounter-nbsp\">Other fees you\u2019ll encounter&nbsp;<\/h3>\n\n\n\n<p>If you partner with a 3PL to handle Amazon FBM, there are costs like storage and <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/fulfillment-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">fulfilment costs<\/a>. If you do it yourself, you may think you\u2019re saving money, but there are always opportunity costs with the amount of time you\u2019re spending packing boxes and running to the local UPS store.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-save-time-cut-shipping-costs-and-speed-up-deliveries-with-shipbob-nbsp\">Save time, cut shipping costs, and speed up deliveries with ShipBob&nbsp;<\/h2>\n\n\n\n<p>Amazon Fulfilled by Merchant can be a great option for Amazon sellers \u2013 especially if you have the right partner to handle fulfilment and shipping for you.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Working with a global fulfilment platform like ShipBob to fulfil <a href=\"https:\/\/www.shipbob.com\/blog\/high-demand-products\/\" target=\"_blank\" rel=\"noreferrer noopener\">high-demand products<\/a> lets you leverage the freedom of Amazon FBM without having to pick and pack orders yourself. ShipBob can fulfil your Amazon FBM orders for you, and offers a Prime-like experience to your DTC website orders as well as your Amazon orders.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Below are some of the advantages that come with letting ShipBob handle your fulfilment.&nbsp;<\/p>\n\n\n\n<p>Note: If you utilise Amazon fulfilment today, we highly recommend diversifying your fulfilment options (e.g., use both FBA and FBM) to maximise sales. <a href=\"https:\/\/www.shipbob.com\/amazon-to-shipbob\/\" target=\"_blank\" rel=\"noreferrer noopener\">Learn why sellers have moved off of Amazon to ShipBob for FBM here<\/a>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-use-multiple-fulfillment-centers-nbsp\">Use multiple fulfilment centres&nbsp;<\/h3>\n\n\n\n<p>ShipBob has dozens of fulfilment centres across the US, the UK, Europe, Australia, and Canada. Merchants can split inventory between multiple locations, so that when an order is placed, it gets fulfilled and shipped from the fulfilment centres closest to the end customer. This <a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/reduce-shipping-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">reduces shipping costs<\/a> and allows for faster deliveries.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cBecause ShipBob has multiple fulfilment centres across the US, we\u2019re able to store and ship our products close to our customers, which helps us bring down shipping costs regardless of where we\u2019re shipping throughout the country.\u201d <\/em><\/p>\n\n\n\n<p><em>Kayleigh Christina, Co-Founder and CMO of <a href=\"https:\/\/www.shipbob.com\/blog\/clearstem\/\">CLEARSTEM<\/a>&nbsp;&nbsp;&nbsp;<\/em><\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-embed-handler wp-block-embed-embed-handler wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"ShipBob Fulfillment Center Guided Tour - 3D 360\u00b0 VR Video\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/YdTbM4XlizY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-get-best-in-class-support-nbsp\">Get best-in-class support&nbsp;<\/h3>\n\n\n\n<p>ShipBob is a partner and an extension of your brand. While Amazon is not known to be the most merchant-friendly option, with ShipBob, you always speak to real people who you can get in touch with, and the same reps who know your account and products.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cMost other companies like Amazon are structured in such a way that you don\u2019t have flexibility \u2014 you\u2019re just a small part of their business, so there\u2019s no patience for you. The amazing thing about ShipBob has not just been its flexibility and ability to customise, but also the support it&#8217;s given us whenever we\u2019ve faced problems. Having support through ShipBob has really allowed us to capture growth well.\u201d<\/em><\/p>\n\n\n\n<p>Aaron Patterson, COO of <a href=\"https:\/\/www.shipbob.com\/blog\/adventure-challenge\/\" target=\"_blank\" rel=\"noreferrer noopener\">The Adventure Challenge<\/a>&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-use-our-cutting-edge-technology-nbsp\">Use our cutting-edge technology&nbsp;<\/h3>\n\n\n\n<p>ShipBob integrates with Amazon FBM seamlessly, so it\u2019s easy to link your Amazon account to our proprietary technology. ShipBob\u2019 dashboard gives you valuable insights into inventory management, <a href=\"https:\/\/www.shipbob.com\/digital-fulfillment\/\" target=\"_blank\" rel=\"noreferrer noopener\">digital fulfilment<\/a> performance, orders, <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-levels\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory levels<\/a>, and <a href=\"https:\/\/www.shipbob.com\/blog\/new-free-analytics-reporting-tool\/\" target=\"_blank\" rel=\"noreferrer noopener\">advanced business metrics and analytics<\/a>. You can easily set <a href=\"https:\/\/www.shipbob.com\/blog\/reorder-point-formula\/\" target=\"_blank\" rel=\"noreferrer noopener\">reorder points<\/a> to ensure you don\u2019t run out of inventory and find all of the data you need.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-grow-other-sales-channels-nbsp\">Grow other sales channels&nbsp;<\/h3>\n\n\n\n<p>While Amazon is still a great channel with a lot of demand, now is the time to make sure you\u2019ve set up your own store for success. With FBM and Amazon in general, there are some tradeoffs like lack of access to your own data, no ability to build or remarket to your customers, and the risk of Amazon using your data to <a href=\"https:\/\/www.wsj.com\/articles\/amazon-scooped-up-data-from-its-own-sellers-to-launch-competing-products-11587650015\" target=\"_blank\" rel=\"noreferrer noopener\">launch its own competing products<\/a>.&nbsp;<\/p>\n\n\n\n<p>ShipBob helps ecommerce brands scale their fulfilment while offering <a href=\"https:\/\/www.shipbob.com\/blog\/guide-offering-affordable-2-day-shipping\/\" target=\"_blank\" rel=\"noreferrer noopener\">2-day shipping<\/a>. It doesn\u2019t have to be selling on Amazon or your website \u2014 it can be selling on both Amazon and your website.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe utilise ShipBob\u2019s EDI solution that is connected to our 3rd party EDI platform SPS Commerce for our Chewy orders, and when we don\u2019t ship directly to Amazon, we rely on ShipBob\u2019s direct integration with Amazon for FBA orders. <\/em><\/p>\n\n\n\n<p><em>We\u2019re even exploring additional channels that ShipBob supports, such as Walmart.com. Being an omnichannel brand is critical for us, so we can reach more pet lovers from more places. We\u2019re glad that ShipBob helps us keep up with demand from all the places we reach our customers.\u201d <\/em><\/p>\n\n\n\n<p>Stephanie Lee, COO at <a href=\"https:\/\/www.shipbob.com\/blog\/petlab\/\" target=\"_blank\" rel=\"noreferrer noopener\">PetLab<\/a>&nbsp;&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<p>To learn how ShipBob can help you with Amazon FBM fulfilment, click the button below to request a fulfilment quote.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\"><strong>Request Fulfilment Pricing<\/strong><\/a><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-amazon-fbm-faqs\">Amazon FBM FAQs<\/h2>\n\n\n\n<p>Here are answers to some common questions about Amazon FBM.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How much does Amazon FBM cost?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Amazon FBM costs will vary for each business. In general, FBM costs include:&nbsp;<\/p>\n\n\n<ul class=\"wp-block-list\">\n\n<li>A monthly subscription fee to sell on Amazon (either the Individual plan at $0.99 per item sold, or the Professional plan at $39.99 per month)&nbsp;<\/li>\n\n\n<li>A small fee per order placed&nbsp;<\/li>\n\n\n<li>A referral fee for each order&nbsp;&nbsp;<\/li>\n\n\n<li>Fulfilment costs like labour, warehousing space, insurance, and packing materials (though partnering with a fulfilment provider can help you avoid some of these costs).&nbsp;<\/li>\n\n<\/ul>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Should I choose FBM or FBA?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Your brand should choose the Amazon fulfilment strategy that meets your needs, saves you time, and boosts your profit margins. For some brands, this solution will be FBA, and for others, it will be FBM.&nbsp;&nbsp;<\/p>\n\n\n<p>Amazon FBA may be a good choice for brands that:&nbsp;&nbsp;<\/p>\n\n\n<ul class=\"wp-block-list\">\n\n<li>Need warehousing space&nbsp;<\/li>\n\n\n<li>Want to outsource fulfilment&nbsp;<\/li>\n\n\n<li>Don\u2019t have customer service or returns management in-house&nbsp;<\/li>\n\n\n<li>Want to leverage the Prime badge&nbsp;&nbsp;<\/li>\n\n<\/ul>\n\n\n<p>Amazon FBM may be better if you:&nbsp;<\/p>\n\n\n<ul class=\"wp-block-list\">\n\n<li>Have your own warehouse&nbsp;<\/li>\n\n\n<li>Are shipping large, heavy, and\/or temperature-sensitive items&nbsp;<\/li>\n\n\n<li>Want a responsive and dedicated fulfilment partner&nbsp;<\/li>\n\n\n<li>Use packaging with your business\u2019s branding (rather than Amazon-branded standard boxes) or are looking to curate the unboxing experience&nbsp;<\/li>\n\n\n<li>Don\u2019t want to deal with complex pricing structures and storage fees&nbsp;<\/li>\n\n<\/ul>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Do Amazon FBM sellers need to package their products?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Yes, Amazon FBM sellers are responsible for packing items in shipment packaging. This is a plus for many brands, as you are free to use your own branded packaging, instead of Amazon-branded boxes and poly mailers. You can also customise the unboxing experience more easily, and curate a positive experience.<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Is Amazon FBM the same as dropshipping?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Amazon FBM is a form of dropshipping. Using FBM, a merchant sells their products on the Amazon platform, but the merchant is the one responsible for storing inventory, fulfilling orders, and shipping to the end customer.<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What is Amazon MFN?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Amazon Merchant Fulfilled Network (MFN) is another term for Amazon FBM.<\/p>\n\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Ecommerce brands selling on Amazon can choose between FBM or FBA. Learn how Fulfilled by Merchant works, the relative costs, and where to get fulfilment help.<\/p>\n","protected":false},"author":194,"featured_media":1132,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[2,3,7,8,13],"class_list":["post-1131","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-3pl-third-party-logistics","blogcategories-amazon","blogcategories-fulfillment","blogcategories-inventory","blogcategories-shipping"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Amazon Fulfilled by Merchant FBM: How it Works in 2025<\/title>\n<meta name=\"description\" content=\"Amazon sellers can choose between FBM or FBA. 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