Fulfillment (FBM)

FBM (Fulfilled by Merchant) is when a seller sells a product to a customer online and then has to ship (fulfill) it. This is popular with sellers located out of the US or sellers who do not have a warehouse.

What is Amazon FBM?

Selling via FBM means that the seller takes full responsibility from storage to final delivery and everything in between like order processing, shipping supplies, postage costs, and mail drop off. Amazon’s role is to help connect a buyer and a seller via their marketplace.

FBM model makes sense if you sell:

  • Customized low volume products
  • Regular products that don’t sell often
  • Low margin products
  • Products that need special handling
  • You are exceeding Amazon’s storage limits

FBM also makes sense in special cases like:

  • FBM fulfillment also makes sense if fulfillment costs are lower than Amazon’s FBA fees.
  • Handmade goods can also be more complicated to fulfill as they can be customized on-demand based on buyers’ requirements.

FBM has con’s and pro’s

FBM shipping model can be a benefit or a detriment to a seller depending on their product type, margins, handling time and logistical requirements.

FBM Pro’s:

  • You have more control over the process. You get to choose what time of shipping service is used and optimize costs.
  • You get to see buyer’s info and contact information which can be helpful with customer service.
  • FBM costs are less than FBA costs for most products.
  • You can sell on multiple marketplaces like eBay, Walmart, Wish, Etsy, Rakuten and ship products in non-branded packaging.
  • You can get creative with packaging and design your own branded envelopes, including inserts, gifts and promotional materials.
  • You can offer free shipping for products under $35 or to buyer’s without Prime membership

FBM Con’s:

  • You may not get a buy box if Amazon’s algorithm is favoring FBA at that particular time.
  • Your offer won’t be eligible for Prime shipping.
  • Shipping rates can be higher for heavier or bulkier products.
  • Delivery time may be longer and some buyers want their purchases sooner.
  • You may need to use multiple carriers and negotiate discounts to stay competitive.

How much does it cost?

$2 per item

Your order will appear in our shipping system as soon as it is processed by the marketplace. Our staff will pick up the product from the warehouse, check for special instructions and ship it.

The order will be shipped the same day if it was placed before 3 pm (15:00) or the next business day after the cut-off time.

The average delivery time for FBM is 3-4 days including weekends..

Storage Fee $1 per cubic foot or $50 for 1 pallet space

Example: Your product’s packaging is 10″ x 5″ x 2″ = 100 cubic inches
We need to convert this to cubic feet and we get 0.058 cubic feet per item.
Next, we multiply 0.058 by $1 and get $0.058 storage fee per month.

If you have 100 pieces in storage, it will be 100 x $0.058 = $5.80 per month.

*FBM fee is for standard-sized products. Some bulky or heavy products may require an additional handling fee which is calculated on a per product basis.

Additional Costs:

  • The exact fulfillment cost varies on your customer's location.
  • Product's dimensions.
  • Carrier Costs