The Complete Guide to Fulfillment by Merchant in 2025
Meta Description: Discover what is FBM and how it works for online sellers. Learn the pros, cons, step-by-step setup, and why FBM might be the best choice for your business.
🔍 What is FBM (Fulfillment by Merchant)?
FBM, short for Fulfillment by Merchant, is a fulfillment method where you, the seller, are in charge of storing inventory, packing orders, and shipping them directly to customers.
In simple words:
👉 Instead of Amazon or another platform handling your logistics, you manage everything yourself.
It’s perfect for sellers who want more control, better branding, and potentially lower costs.
📦 How Does FBM Work? Step-by-Step
Here’s how the FBM process flows when a customer buys from you:
- ✅ A customer places an order on your listing (e.g., Amazon, Etsy).
- 📬 You receive the order notification.
- 🏷️ You pick, pack, and ship the item from your warehouse or location.
- 🚚 You upload the tracking details.
- 💬 You handle returns, feedback, and customer service.
Unlike Fulfillment by Amazon (FBA), you handle every step—just the way you want.
🔄 FBM vs FBA: What’s the Difference?
| Feature | FBM (Fulfillment by Merchant) | FBA (Fulfillment by Amazon) |
|---|---|---|
| Shipping | Handled by the seller | Handled by Amazon |
| Inventory | Stored by seller | Stored by Amazon |
| Customer Service | Handled by seller | Handled by Amazon |
| Prime Eligibility | Not by default | Yes |
| Fees | Lower (no storage or fulfillment fees) | Higher (fulfillment, storage, returns) |
| Control | High | Limited |
👉 FBM gives more control, FBA gives more convenience.
✅ Benefits of FBM
FBM comes with some key advantages, especially for growing or specialized businesses:
- Lower Costs: No Amazon storage or shipping fees.
- Full Control: Customize packaging, branding, and delivery methods.
- No Inventory Limits: Store as much as you want, where you want.
- More Flexibility: Easier to offer bundles, unique products, or made-to-order items.
⚠️ Challenges of FBM
But it’s not for everyone. Here’s what you’ll need to handle:
- Shipping Speed Expectations: Customers still expect fast delivery.
- Customer Support: You’re responsible for refunds, returns, and complaints.
- Tracking and Metrics: Late shipments or poor service impact your seller rating.
🎯 Who Should Use FBM?
FBM works best for:
- Small businesses with existing logistics
- Sellers with custom or handmade items
- Retailers shipping from their own stores
- Brands focused on personalized experiences
🛠️ How to Set Up FBM on Amazon
Setting up FBM is simple:
- Sign in to your Amazon Seller Central account.
- Add products manually or via bulk upload.
- Choose “Fulfilled by Merchant” during product setup.
- Set your shipping rates and handling times.
- Test order flow before going live.
💡 Tip: Use shipping software like ShipStation or EasyShip to simplify logistics.
🧰 Tools for FBM Sellers
Managing FBM at scale? These tools help:
- Inventory Software: Zoho Inventory, Cin7
- Shipping Platforms: ShipStation, EasyShip, Pirate Ship
- Order Management: Orderhive, TradeGecko
📈 Future of FBM in E-commerce
- Hybrid Fulfillment is rising: Mix FBM + FBA for best of both worlds.
- AI-based shipping tools now help predict delivery delays and route packages better.
- Sustainability: More sellers now ship with eco-friendly packaging.
❓ FAQs About FBM
Q1: Is FBM better than FBA?
It depends. FBM is better for control and lower costs. FBA is better for fast Prime shipping and automation.
Q2: Can I switch between FBM and FBA?
Yes! You can toggle between fulfillment methods per product.
Q3: Is FBM suitable for new sellers?
Yes, if you already have access to shipping solutions or want to stay lean.
Q4: Does FBM allow Amazon Prime?
Not by default. However, you can qualify via Seller Fulfilled Prime (SFP).
Q5: Do I need a warehouse for FBM?
Not necessarily. You can fulfill from your home, store, or third-party service.
Q6: What are typical FBM shipping times?
2–7 business days is standard, but you control the timeline.
✅ Final Thoughts: Is FBM Right for You?
If you’re a seller looking for more control, lower fees, and flexible branding, FBM could be a perfect fit. It’s ideal for small businesses, niche products, and anyone who wants to own the fulfillment journey.
But remember—with great power comes great responsibility. You’ll need solid logistics, reliable shipping, and top-notch service to succeed with FBM.
