Picture this: you’ve got your excellent products ready to sell on Amazon, and you’re thinking, “I’m in charge of this whole operation.” Enter FBM or Fulfilled by Merchant. In simple terms, FBM means you, as the seller, handle all your products’ picking, packing, and shipping. Unlike the big, efficient Amazon warehouses, you do the work. Whether you’re shipping out a fancy set of phone cases or hand-crafted candles, FBM gives you complete control over your inventory and fulfillment process. You can manage everything from your home, warehouse, or space dedicated to this small empire you’re building. Think of it as your Amazon warehouse, minus the fancy robots.

FBM isn’t just an alternative to FBA (more on that later); it’s a strategic move for sellers who want to cut down on fees, control their inventory, and maybe even sell products that Amazon’s FBA system won’t touch (we’re looking at you, big, heavy, or hazardous items!). The beauty of FBM is that you can decide how you ship and how fast you deliver. If you’re fast with packing, you could offer quicker delivery times than FBA—and that’s a significant win for customer satisfaction. So, FBM is the route for those who want to manage their business with their own hands.

HOW TO GET STARTED WITH AMAZON FBM

1. Dual-Listing for More Sales

Here’s a fact: Dual-listing your products as FBM and FBA can boost your sales by 2-5% or more. Some customers don’t have Amazon Prime and prefer FBM options to avoid extra shipping fees. Others shop from countries where FBA isn’t available.

By offering an FBM listing, you open the door to these buyers. For instance, I once added FBM listings for a diet pill company and generated an extra $75,000 a year in sales—simply because FBM captured the orders that FBA couldn’t.

2. FBM Can Win the Buy Box

When FBA options face delays (like during the pandemic), FBM can swoop in and save the day. Imagine customers see an FBA listing with a month-long delivery window but spot your FBM listing promising delivery in just four days. Who do you think wins that sale?

3. Stay Active When FBA Runs Out of Stock

Running out of FBA stock doesn’t have to mean zero sales. With an FBM listing as backup, you can keep selling while restocking your FBA inventory. Sure, some customers prefer Prime, but having an FBM option means fewer missed opportunities and a steadier sales stream.

4. FBM to the Rescue During Emergencies

Remember when Amazon restricted FBA shipments during the COVID-19 pandemic? Sellers with only FBA listings were stuck, but those with FBM options kept the sales rolling. FBM is your safety net for unexpected situations when FBA isn’t an option.

5. FBM Saves the Day if Your FBA SKU is Suspended

What happens when Amazon temporarily suspends your FBA listing? Without FBM, your sales grind to a halt. I’ve seen this firsthand—one company’s FBA SKU was frozen over a bogus complaint about packaging. Thankfully, we had an FBM listing as backup, which saved thousands of dollars in potential losses.

6. Some Products Can Only Be Sold FBM

Amazon restricts certain products in its warehouses, such as hazardous materials (like nail polish, whipped cream, or hairspray) and oversized items. If you sell custom or made-to-order products, FBM is often your only choice.

If you’ve heard of FBA—Fulfilled by Amazon—you’re probably thinking, “Okay, so FBM sounds like the opposite of that, right?” You’re not wrong. While FBA is like handing over your entire product operation to Amazon (think storage in Amazon’s warehouses, packing, shipping, and customer service taken care of by them), FBM is when you do everything independently.

Here’s the breakdown:

• FBA (Fulfilled by Amazon): Amazon handles the storage, packing, shipping, and returns. You send your products to Amazon’s warehouses, and they take care of the rest. Your products are eligible for Prime shipping, and you get the perks of Amazon’s massive fulfillment network. The downside? You pay Amazon storage and fulfillment fees and must follow their strict inventory and product prep rules.
• FBM (Fulfilled by Merchant): You control the entire process. You store the products, pack them, ship them, and handle returns. The catch is that you won’t automatically get Amazon Prime perks unless you qualify for the Seller Fulfilled Prime program (but that’s another ballgame). The upside? You cut out those hefty FBA fees and have complete control over your shipping and customer service experience.

So, FBM gives you freedom, flexibility, and potentially lower costs, but you’ll need to stay on top of things like inventory management, shipping speed, and customer support. FBA takes care of those things for you but at a price. Choosing between FBA and FBM often depends on the type of product you’re selling, your margins, and how much work you’re willing to do yourself.

Dual-listing your products with both FBM (Fulfilled by Merchant) and FBA (Fulfilled by Amazon) is a smart strategy that boosts your Amazon business by providing flexibility and more opportunities for sales. While FBA handles the heavy lifting with Amazon’s fulfillment services and Prime eligibility, FBM gives you greater control over your inventory and shipping, letting you cater to customers who aren’t Prime members or prefer avoiding extra shipping fees. This combo ensures your products are visible to a broader audience and gives you backup in case of stockouts or disruptions.

The real benefit of having both FBA and FBM is the increased visibility and sales. With FBM, you can tap into non-Prime shoppers who might balk at paying shipping fees for FBA items. Plus, if your FBA inventory runs low or is temporarily suspended, an active FBM listing ensures sales continue flowing. Even a tiny increase in sales—about 2-5%—can add up to thousands of dollars annually, especially when moving a high product volume.

Adding FBM to your Amazon strategy isn’t just about avoiding setbacks; it’s about future-proofing your business. Having both fulfillment options available gives you a cushion against Amazon’s occasional logistical issues, like stockouts or shipping delays. This dual approach ensures you’re always prepared, no matter what happens. 

While many products can be sold via FBM on Amazon, some categories, such as health items, fine jewelry, and automotive parts, require prior approval. Prohibited items include unsafe goods, counterfeit products, hazardous materials, and recalled items. Sellers must comply with Amazon’s condition guidelines, ensure products meet local safety and legal standards, and consider shipping feasibility for oversized or heavy items. Seasonal restrictions may apply, such as limitations on toy sales during holidays. Always review Amazon’s restricted and prohibited product policies to ensure compliance before listing.

No, you need not be a Prime seller to use Fulfilled by Merchant (FBM). Any seller on Amazon can choose the FBM model, where you are responsible for storing, packaging, and shipping your products directly to customers. However, if you want to offer Prime shipping benefits (e.g., fast shipping and the Prime badge) while using FBM, you must qualify for and enroll in the Seller Fulfilled Prime (SFP) program. SFP requires you to meet strict performance metrics, including offering two-day delivery to Prime customers and maintaining high customer service standards. If you’re not part of SFP, you can still sell using FBM without the Prime badge.

FBM can be more cost-effective than FBA for sellers with low-margin, heavy, or oversized products or those with existing logistics infrastructure, as it avoids Amazon’s storage and fulfillment fees. However, FBM sellers bear shipping and customer service costs and may lack Prime eligibility, affecting sales. FBA, while more expensive due to storage, fulfillment, and optional service fees, offers benefits like Prime eligibility, discounted shipping rates, and outsourced customer service, making it ideal for small, lightweight, or high-margin products and sellers focused on scaling. The choice depends on your product type, sales volume, and operational capacity.

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