How Does Amazon FBM Shipping Work

Welcome to our guide on Amazon Fulfilled by Merchant (FBM) shipping!

If you’re an e-commerce seller looking to take control of your storage, shipping, and customer support on Amazon, you’ve come to the right place.

In this article, we’ll dive into the details of how Amazon FBM shipping works and provide you with valuable insights on streamlining your e-commerce strategy.

Key Takeaways:

• Amazon FBM is a method where sellers handle their own storage, shipping, and customer support.
• Sellers have full control over the fulfillment process with FBM, unlike Fulfilled by Amazon (FBA).
• FBM offers benefits such as more control over branding and customer service, lower fulfillment costs, and the ability to continue fulfilling orders during peak periods.
• Sellers on the Professional selling plan can set their own shipping rates and customize shipping templates for specific regions.
• Choosing between FBA and FBM depends on factors such as logistic capabilities, goals, and product types.

What is Amazon FBM?

Amazon Fulfilled by Merchant (FBM) is a method of selling on Amazon where sellers list their products in Amazon stores and are responsible for handling storage, shipping, and customer support independently.

With FBM, sellers have full control over their fulfillment process, unlike Fulfilled by Amazon (FBA), where Amazon handles these aspects.

When using FBM, sellers have the flexibility to manage their inventory, ship products directly to customers, and provide personalized customer service. It allows sellers to maintain their unique branding, packaging, and shipping practices.

How Amazon FBM Works:

With FBM, sellers are responsible for storing their inventory and directly shipping products to customers as orders are received. They handle customer inquiries, returns, and exchanges, providing a personalized shopping experience.

When a customer places an order for an FBM product, sellers receive a notification to prepare the order for shipment. Sellers must ensure timely and accurate shipping, providing valid tracking information to customers.

It is essential to choose reliable shipping carriers and packaging solutions to maintain customer satisfaction.

Aspect	Amazon FBM	Amazon FBA
Ownership of fulfillment process	Merchant	Amazon
Storage of inventory	Merchant	Amazon fulfillment centers
Shipping responsibility	Merchant	Amazon
Customer support	Merchant	Amazon (optional)

Benefits of Amazon FBM

While Fulfilled by Merchant (FBM) on Amazon may not offer the coveted Prime badge or the convenience of Amazon’s fulfillment centers, it comes with a range of benefits that make it a worthwhile option for sellers.

1. More Control Over Branding and Customer Service

With FBM, you have complete control over how your brand is represented and the customer service experience you provide.

This means you can create a personalized and unique brand identity, build direct relationships with customers, and deliver exceptional service tailored to your target audience.

2. Lower Fulfillment Costs

By handling storage and shipping yourself, FBM allows you to potentially reduce fulfillment costs.

Without the need to pay fees associated with Amazon’s fulfillment services, you can allocate your resources more efficiently and pass on the cost savings to your customers, making your products more competitive in the marketplace.

3. Flexibility to Fulfill Orders During Peak Periods

During peak shopping seasons or unexpected emergencies, such as natural disasters, FBM provides the flexibility to continue fulfilling orders without any limitations.

While Fulfilled by Amazon (FBA) may have restrictions or delays during such periods, you can maintain uninterrupted order fulfillment with FBM, ensuring customer satisfaction and maximizing sales.

4. Enhanced Inventory Management

With FBM, you have direct control over your inventory management processes. This allows for more accurate tracking, real-time inventory updates, and the ability to better allocate stock based on demand patterns.

Additionally, you can implement your own strategies for inventory forecasting and replenishment, optimizing your supply chain and avoiding potential stockouts.

5. Opportunity for Multi-Channel Selling

FBM opens up the opportunity to expand your e-commerce presence beyond Amazon. Since you are responsible for fulfilling orders, you can easily integrate with other online marketplaces or your own e-commerce website.

This diversification can bring in additional revenue streams and reduce dependence on a single platform.

6. Greater Data and Analytics Insight

Managing your fulfillment process with FBM allows you to gain deeper insights into customer behavior, order metrics, and overall sales performance.

By leveraging these valuable data and analytics, you can make informed decisions, optimize your operations, and tailor your marketing strategies to drive greater success.

Overall, while FBM may require more hands-on involvement, it offers numerous benefits that can contribute to the growth and profitability of your business.

Benefits of Amazon FBM
More control over branding and customer service
Lower fulfillment costs
Flexibility to fulfill orders during peak periods
Enhanced inventory management
Opportunity for multi-channel selling
Greater data and analytics insight

Setting Up Shipping Rates for FBM

When you choose Amazon FBM as your fulfillment method, you gain the flexibility to set your own shipping rates.

As a seller on the Professional selling plan, you have control over customizing shipping templates for specific regions, both domestically and internationally.

This allows you to tailor your shipping options to meet the needs of your customers.

With Amazon FBM, you can determine the handling and transit times for each shipping template, ensuring that your customers receive their orders in a timely manner.

By offering various shipping options, you can provide flexibility and convenience to your customers, enhancing their shopping experience.

Whether you want to offer free shipping, charge a flat rate, or set rates based on the weight or size of the item, Amazon FBM allows you to define your own shipping rates.

This gives you the opportunity to find a balance between competitive pricing and covering your shipping costs.

Remember, when setting up your shipping rates for FBM, keep in mind that the referral fee is calculated based on the total sale price.

This includes not only the item price but also the shipping cost and any additional charges, such as gift-wrapping fees. By considering these factors, you can accurately price your products while accounting for the shipping expenses.

Take advantage of the flexibility that Amazon FBM offers in setting up your shipping rates to attract more customers and optimize your profitability.

By providing transparent and competitive shipping options, you can build trust with your buyers and drive more sales for your business.

When to Choose FBA or FBM

Choosing between Fulfillment by Amazon (FBA) and Fulfilled by Merchant (FBM) depends on several factors that can impact your e-commerce success.

Consider your logistic capabilities, goals, and specific product types to make an informed decision.

For sellers who want to outsource fulfillment, have large or heavy items to ship, and want to take advantage of specialized services, FBA is the way to go.

With FBA, Amazon handles packaging, shipping, and customer service, providing a seamless and efficient experience for both you and your customers.

On the other hand, FBM can be beneficial for sellers with small inventory, existing logistics in place, or those who value more control over branding and customer service.

With FBM, you handle storage, shipping, and customer support independently, allowing you to tailor the fulfillment process to your specific needs.

Factors to Consider:

• Your logistical capabilities: Assess whether your business has the capacity to handle storage, packaging, and shipment efficiently. If you lack the resources and infrastructure, FBA may be the better choice.
• Goals and objectives: Determine your long-term objectives and how fulfillment options align with them. If your goal is to scale rapidly and reach a wider customer base, FBA’s streamlined process can help you achieve that.
• Product types: Evaluate the nature of your products. If you have perishable or fragile items that require special handling, FBA’s expertise in packaging and shipment can provide added peace of mind.
• Branding and customer service: Consider the importance of branding and the level of customer service you wish to provide. FBM allows you to customize packaging, insert promotional materials, and have direct interactions with customers.

By carefully assessing these factors, you can make an informed decision about whether to choose FBA or FBM. Remember, there is no one-size-fits-all solution, and the right choice depends on your specific needs and priorities.

Getting Started with Amazon FBM

Are you ready to start selling on Amazon FBM? First, you’ll need to create a seller account on Amazon Seller Central. Here’s a step-by-step guide to get you started:

Create Your Amazon Seller Account

1. Go to the Amazon Seller Central website and click on “Register now”.
2. Provide your business information, including your company name, address, and contact details.
3. Enter a valid email address that you will use to communicate with Amazon and manage your seller account.
4. Provide your credit card details for payment processing purposes.
5. Submit your tax information to comply with Amazon’s tax requirements.
6. Verify your phone number for account security.

List Your Products

Once you’ve created your seller account, it’s time to list your products on Amazon. Follow these steps:

1. Access your Seller Central dashboard and click on “Add a Product”.
2. Choose the category that best fits your product and fill in the required details, including product title, description, and images.
3. Set the price, quantity, and any additional product variations or options.
4. Provide shipping details, including weight, dimensions, and shipping methods.
5. Review your listing and submit it for approval.

Manage Inventory and Shipping

Proper inventory management and shipping capabilities are essential for a successful FBM experience. Here’s what you need to do:

• Keep track of your inventory levels to ensure you can fulfill orders in a timely manner.
• Choose reliable shipping carriers and set up shipping templates for different regions or countries.
• Package your products securely and follow Amazon’s guidelines for packing and preparation.
• Provide accurate and up-to-date tracking information to your customers.

Optimize Your FBM Strategy

Now that you’ve set up your Amazon FBM account, it’s important to continuously optimize your strategy to maximize sales and customer satisfaction. Consider the following:

• Monitor your seller metrics and customer feedback to identify areas for improvement.
• Offer competitive pricing and promotions to attract customers.
• Provide excellent customer service by responding to buyer messages promptly and addressing any issues or concerns.
• Continuously evaluate your product performance and consider adding new products or adjusting your inventory.

By following these steps and making the most of Amazon FBM, you can establish a successful online business and reach a wide customer base. So, get started today and unlock the potential of selling on Amazon!

Managing Inventory and Order Processing with FBM

Efficient inventory management is crucial for FBM sellers to meet customer demand while minimizing costs.

When it comes to managing inventory and processing orders, FBM provides sellers with the necessary tools and flexibility through the Seller Central dashboard.

One key aspect of inventory management is the ability to assign shipping templates. By utilizing shipping templates, you can streamline your shipping process and ensure consistent and accurate shipping rates for different regions.

In addition to shipping templates, the Seller Central dashboard allows you to handle order processing efficiently. From managing incoming orders to preparing shipments, FBM sellers have full control over the entire order fulfillment process.

Choosing the right packaging is also crucial for order processing.

By adhering to Amazon’s requirements for packing and preparation, you can ensure that your products are properly protected during transit and arrive in excellent condition to your customers.

When it comes to managing inventory and order processing, FBM provides sellers with the necessary tools and flexibility to streamline their operations and provide a seamless customer experience.

Inventory Management	Order Processing
Assign shipping templates	Manage incoming orders
Optimize shipping rates	Prepare shipments
Track inventory levels	Ensure proper packaging

By effectively managing inventory and processing orders, FBM sellers can provide a seamless experience to their customers while optimizing their operations.

Providing Excellent Customer Service with FBM

As an FBM seller, customer service plays a crucial role in building your reputation and driving customer loyalty.

By providing excellent customer service, you can differentiate yourself from competitors and create a positive buying experience for your customers.

Responsiveness and Communication

When selling on Amazon FBM, it’s important to respond to buyer messages promptly, ideally within 24 hours.

Timely communication shows your dedication to customer satisfaction and helps address any queries or concerns they may have.

To ensure efficient communication, regularly monitor your seller messages and notifications. Responding promptly and professionally can help build trust and encourage repeat purchases.

Handling Returns and Exchanges

As an FBM seller, you are responsible for handling returns and exchanges directly. Having a clear and easy-to-understand return policy can instill confidence in buyers and encourage them to make a purchase.

When processing returns, ensure that you follow Amazon’s guidelines and policies. Promptly authorize returns, provide refunds or replacements as necessary, and communicate with buyers throughout the process.

By efficiently managing returns, you can mitigate negative feedback and maintain customer satisfaction.

Monitoring Customer Feedback

Regularly monitoring customer feedback is essential for understanding how buyers perceive your products and services.

Take the time to analyze customer reviews, ratings, and feedback to identify areas for improvement and address any potential issues.

By actively addressing customer feedback, you can demonstrate your commitment to providing exceptional service and continuously improving your products.

Positive feedback can also serve as social proof, influencing potential customers to choose your products over competitors.

Reducing Claims and Returns

Reducing claims and returns is crucial for maintaining a healthy FBM business. One way to achieve this is by accurately representing your products through detailed descriptions and high-quality images.

Providing accurate information helps set realistic expectations and reduces the likelihood of returns.

Additionally, ensure that you package products securely to minimize the risk of damage during transit.

Taking proactive measures to prevent claims and returns can save you time, effort, and costs associated with processing returns and resolving customer issues.

Best Practices for Customer Service

• Be polite, professional, and empathetic in all customer interactions.
• Resolve customer issues promptly and amicably.
• Take ownership of any mistakes or issues and offer suitable solutions.
• Provide accurate and detailed product information to avoid misunderstandings.
• Stay updated with Amazon’s policies and guidelines for FBM sellers.

In conclusion, providing excellent customer service as an FBM seller is essential for building a strong reputation, fostering customer loyalty, and ultimately driving sales.

By promptly responding to buyer messages, handling returns and exchanges efficiently, monitoring customer feedback, and implementing best practices, you can establish yourself as a trusted seller on Amazon.

Shipping and Tracking FBM Orders

As an FBM seller on Amazon, you have the flexibility to choose how you handle shipping.

You can either manage the shipping process yourself or take advantage of Amazon’s Buy Shipping Services, which offers discounted rates. Regardless of your choice, timely shipping is crucial to ensure customer satisfaction.

When shipping FBM orders, it’s important to provide valid tracking information. This allows your customers to track their packages and know when to expect delivery.

Valid tracking information also helps you monitor the shipment’s status and address any potential issues that may arise.

Fulfilling orders promptly and providing accurate tracking information are key to a smooth shipping process. This helps build trust with your customers and enhances their overall shopping experience.

Properly packaged orders also contribute to customer satisfaction by ensuring that products arrive in good condition.

To give you an idea of the FBM shipping process, here’s an overview:

1. Receive order notification from Amazon.
2. Pack the product securely using appropriate packaging materials.
3. Generate the shipping label and affix it to the package.
4. Drop off the package at the designated carrier location or schedule a pickup.
5. Provide the valid tracking information on Amazon’s Seller Central platform.

By following these steps and maintaining efficient shipping practices, you can ensure a smooth shipping process for your FBM orders.

Example:

Step	Description
1	Receive order notification from Amazon.
2	Pack the product securely using appropriate packaging materials.
3	Generate the shipping label and affix it to the package.
4	Drop off the package at the designated carrier location or schedule a pickup.
5	Provide the valid tracking information on Amazon’s Seller Central platform.

Pros and Cons of Amazon FBM

Amazon Fulfilled by Merchant (FBM) offers both advantages and disadvantages for sellers. Understanding the pros and cons of using FBM can help you make an informed decision for your e-commerce strategy.

Pros of Amazon FBM

• Greater Control Over Branding: With FBM, you have complete control over the packaging, delivery, and customer experience. This allows you to showcase your brand identity and create a cohesive brand experience.
• Lower Costs: FBM eliminates the fees associated with using Amazon’s fulfillment services, such as storage and handling fees. This can result in significant cost savings for sellers, especially those with smaller inventories.
• Flexibility During Peak Periods: During busy seasons or peak periods, FBM allows you to continue fulfilling orders without the limitations that may be imposed on FBA sellers. This flexibility ensures that you can meet customer demand and maintain a steady flow of sales.

Cons of Amazon FBM

• Requires More Time and Effort: As an FBM seller, you are responsible for all aspects of fulfillment, including storage, packaging, and shipping. This requires more time and effort compared to using Amazon’s FBA services.
• Competing Without the Prime Badge: One of the advantages of using FBA is the ability to offer Prime shipping to customers, which can boost sales. FBM sellers do not have access to the Prime badge, which may put them at a disadvantage when competing for customer attention.
• Challenges in Handling Fulfillment: Fulfillment can be complex and challenging, especially for sellers who are new to e-commerce or have limited logistical capabilities. Managing inventory, shipping on time, and providing excellent customer service can require a learning curve.

Understanding the pros and cons of Amazon FBM can help you determine if it aligns with your business goals and capabilities.

Consider your resources, branding priorities, and customer expectations to make the best choice for your e-commerce success.

Frequently Asked Questions

After going through this helpful guide on Amazon FBM shipping, you must have even more questions. Let us answer them in this section below!

How do I set up shipping rates for FBM?

Sellers on the Professional selling plan who choose FBM have the ability to set their own shipping rates. They can customize shipping templates for specific regions domestically or internationally, including handling and transit times. The referral fee is calculated from the total sale price, which includes the item price, shipping cost, and any gift-wrapping charges.

When should I choose between FBA or FBM?

The decision to choose between FBA or FBM depends on factors such as the seller’s logistic capabilities, goals, and specific product types. FBA is suitable for sellers who want to outsource fulfillment, have large or heavy items to ship, and want to take advantage of Amazon’s specialized services. FBM is beneficial for sellers with small inventory, existing logistics in place, or who want more control over branding and customer service.

How do I get started with Amazon FBM?

To start selling on Amazon FBM, sellers need to create a seller account on Amazon Seller Central. This process requires providing business information, a valid email address, credit card details, tax information, and a phone number. Sellers also need to list their products on Amazon and ensure they have proper inventory management and shipping capabilities.

How do I manage inventory and order processing with FBM?

Efficient inventory management is crucial for FBM sellers to meet customer demand while minimizing costs. Sellers can assign shipping templates and handle order processing through the Seller Central dashboard. Choosing the right packaging and following Amazon’s requirements for packing and preparation are also important aspects of order processing.

How do I provide excellent customer service with FBM?

FBM sellers are responsible for providing excellent customer service, responding to buyer messages within 24 hours, and handling returns and exchanges. Monitoring customer feedback, reducing claims and returns, and using best practices for customer service can help maintain a positive reputation and convert one-time buyers into loyal customers.

How do I ship and track FBM orders?

FBM sellers can choose to handle shipping themselves or use Amazon’s Buy Shipping Services for discounted rates. Sellers must ship products on time and provide valid tracking information to ensure a smooth shipping process. Tracking orders and using proper packaging are essential for customer satisfaction.

Conclusion

In conclusion, Amazon Fulfilled by Merchant (FBM) offers sellers the flexibility and control to manage their fulfillment process and branding.

While it may require more effort and resources compared to Fulfillment by Amazon (FBA), FBM can be a viable option for optimizing your e-commerce strategy and achieving your business goals.

With FBM, you have the freedom to set your own shipping rates, customize shipping templates, and have complete control over handling and transit times.

This allows you to tailor the fulfillment experience to meet the specific needs of your customers.

However, it’s important to carefully consider your requirements and objectives before choosing between FBA and FBM.

FBA may be a better fit if you have large or heavy items to ship, want to take advantage of Amazon’s specialized services, or prioritize the convenience of the Prime badge.

On the other hand, FBM can benefit sellers with small inventory, existing logistics capabilities, and a focus on branding and customer service.

Ultimately, selecting the right fulfillment option for your Amazon business is a strategic decision that should align with your unique circumstances.

By considering factors such as your product types, logistical capabilities, and long-term goals, you can make an informed choice between FBA and FBM that maximizes your success on the Amazon platform.