What is Amazon FBM?
Amazon FBM is also known as Amazon Merchant Fulfilled Network (MFN). In this fulfillment method, Amazon sellers are responsible for fulfilling the purchased products on Amazon. Sellers can manage FBM directly or become a partner with a third-party logistics service provider. Indeed, the merchant should fulfill the whole process from inventory storage, picking, packing, shipping, return, and customer service.
Newbies can only use this method to start their business on Amazon because setting up FBA takes time, and sellers need a few approvals for their Amazon FBA Business. Besides, they require to demonstrate inventory turnover. However, small businesses fulfill orders by the FBM method because the Amazon FBM costs are more reasonable for their business.
What is the Difference Between Amazon FBA & FBM?
Fulfillment by Amazon (FBA) is a fulfillment method in which Amazon has the whole responsibility for fulfilling products. A seller or a seller’s supplier sends the items directly to Amazon’s warehouse, and Amazon stores this inventory, picks, packs, and ships the sold product directly to the customer.
If customers subscribe to the Amazon Prime service, the shipping time would be only two days. Return and customer support are the other services that Amazon provides.
On the other hand, is Amazon FBM. Here, sellers use the Amazon platform to list their products on Amazon. But the merchant has to manage the rest, from storage, pick&pack, and shipment. Even return, and customer service is their responsibilities.
You can see the comparison between FBA and FBM in this table:
|
Fulfilled by Amazon (FBA) |
Fulfilled by Merchant(FBM) |
Prime Shipping |
Automatically Eligible |
Only Through SFP |
Buy Box Advantages |
Yes |
No |
Amazon Search Rank Advantages |
Yes |
No |
Customer Service |
Amazon is Responsible |
Seller is Responsible |
Refunds and Returns |
Amazon is Responsible |
Seller is Responsible |
Performance Metrics Related to Order (on-time delivery, order cancelation, etc.) |
Amazon is Responsible |
Seller is Responsible |
Costs |
-Seller owes Amazon storage, fulfillment, and Referral Fees -Better for Small and Light Items Storage Fees Increase During Holiday Season |
-Seller owes Amazon only the referral fee -Better for Heavy, Oversized Items -Some Sellers May Have Lower Fulfillment Cost VS. FBA |
Inventory Control |
No Control |
Total Control |
Customer Experience |
Less Control |
More Control |
|
Very Strict Requirements |
Depends on Seller |
Amazon FBA VS. FBM ; Which One is Better for You?
What Are Amazon FBM Fees?
When sellers decide to ship the products by themselves, they will incur some costs. These FBM charges depend on shipping and delivery options and vary from seller to seller.
Amazon FBM Shipping Fees
Based on the type of product you purchase, your shipping fees on Amazon are different. Every single item has a specific shipping fee, so you may charge more if buying multiple products from a seller. American customers have to pay according to the shipping rate listed below tables for domestic and international shipments:
|
Domestic Standard* |
Domestic Expedited* |
Domestic Two-Day |
Domestic One-Day |
(4 – 14 business days**) |
(2 – 6 business days**) |
(2 business days) |
(1 business day) |
|
Books |
$3.99 |
$6.99 |
$14.95 |
$19.99 |
CDs, Cassettes, Vinyl |
$3.99 |
$6.19 |
$14.95 |
$19.99 |
VHS Videotapes |
$3.99 |
$6.19 |
$14.95 |
$19.99 |
DVDs and Blu-ray |
$3.99 |
$6.19 |
$14.95 |
$19.99 |
Video Games |
$3.99 |
$6.99 |
Not available |
Not available |
Software & Computer Games |
$3.99 |
$6.99 |
Not available |
Not available |
Camera & Photo |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
Tools & Hardware |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
Kitchen & Housewares |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
Computer |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
Outdoor Living |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
Electronics |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
Sports & Outdoors |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
Cell Phones & Service |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
Musical Instruments |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
Office Products |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
Toy & Baby |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
Independent Design items |
FREE |
$6.49 + $0.99/lb. |
Not available |
Not available |
Everything Else |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
* Includes APO, FPO, and U.S. Protectorate addresses.
** Some sellers offer reduced transit times when shipping orders. Please see the seller’s policies for more information.
|
International Standard |
International Expedited |
|
(3 – 6 weeks) |
(3 – 7 business days) |
Books |
$16.95 up to 1lb. $24.95 over 1 lb. |
$46.50 |
CDs, Cassettes, Vinyl |
$14.95 |
$46.50 |
VHS Videotapes |
$14.95 |
$46.50 |
DVDs |
$14.95 |
$46.50 |
Note: The seller themselves set the shipping charges for non-media products delivered outside the Continental United States. Please see the rates posted in the seller’s shipping policies.
To Know All the Details About Amazon FBA Fees & Costs, Click Here!
Who pays for shipping Amazon FBM?
In the FBM method, the customer/seller must also pay the shipping fees.
Amazon FBM Selling Fees
As a fee-based structure, Amazon FBM includes three main fees:
- Monthly subscription fee
By subscribing to this Professional plan per month, you can waive additional fees for sold products.
- Referral fees
It depends on the type of products you sell and varies between 6% and 45%. The referral fee table is available on Amazon’s website.
Other Fees
· High Volume Listing Fee
· Closing Fees
· Rental Book Service Fees
· Refund Administration Fees
Final Thought
When you choose the Amazon FBM method to fulfill your sold items, you should be careful about Amazon FBM Costs. Using FBM for fulfilling your product has some benefits, although it needs hard work. These benefits make it attractive to use as a primary or backup plan.
To become successful as an FBM seller, taking care of your reputation is critical. Therefore, you have to ship and deliver all orders on time. “Buy Shipping” is a feature that Amazon offers sellers to track their products and ensure a reliable and smooth fulfillment process.
Amazon FBM Fees FAQ
Yes. Amazon doesn’t have any limitations for using both FBM and FBA simultaneously.
It is possible to change your fulfillment method manually. Simply open your “listing page” and click on the “Offer” tab. You can find the “Fulfilled By” field under “Listing Details.” Select either FBA or FBM by clicking on the dropdown. Finish your job by clicking on “Save & Publish.”
Amazon does not collect sales tax on FBM orders. You need to keep records of the collected tax. Then remit them by yourself.
Depending on the product type that you sell, the Amazon share is varied. This fee range from 6% to 45% of each product’s selling price. But on average, sellers are paying about 15%.
1) Select a marketplace among all global marketplaces.
2) Select your business model among private label, wholesale, online arbitrage, dropshipping, and retail arbitrage.
3) Create an Amazon seller account.
4) List your products.
5) Select your fulfillment method. Here, you can choose the FBM method for fulfilling your sold products.
6) Fulfill your orders.
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