we’ll explore how Amazon FBM works, its pros and cons, and how partnering with a third-party logistics (3PL) provider like Daguer Logistics can optimize the process.
Amazon is the world's largest e-commerce marketplace, giving sellers a global audience for their products. One of the most critical decisions sellers face is choosing the right fulfillment method. Amazon offers multiple fulfillment options,
including:
· Fulfilled by Merchant (FBM) – Also known as Merchant Fulfilled Network (MFN)
· Fulfilled by Amazon (FBA)
· Multi-Channel Fulfillment (MCF)
· Seller Fulfilled Prime (SFP)
· Amazon Direct Fulfillment
While FBA is the most widely used fulfillment method, FBM is growing in popularity as merchants seek greater control over their operations and fulfillment. In this article, we’ll explore how Amazon FBM works, its pros and cons, and how partnering with a third-party logistics (3PL) provider like Daguer Logistics can optimize the process.
Amazon FBM is a fulfillment method where sellers handle their own storage, order fulfillment, and shipping instead of using Amazon’s fulfillment centers. This method allows businesses to have greater control over inventory, branding, and shipping processes while avoiding FBA’s fees and storage limitations.
Sellers can choose to fulfill orders themselves or partner with a 3PL provider like Daguer Logistics to streamline fulfillment and shipping.
Amazon FBM allows sellers to store and ship their products without relying on Amazon’s fulfillment network. This ensures that fulfillment is not impacted by Amazon’s inventory restrictions or storage limits.
Amazon FBA fees have steadily increased, especially for storage and fulfillment. Additionally, Amazon’s strict inventory limits can restrict sellers from stocking enough inventory, leading to lost sales.
Amazon has been known to suspend Prime badges or remove listings due to high demand or operational issues. With FBM, sellers remain in control and are not at the mercy of Amazon’s policies.
FBM allows sellers to use branded packaging, enhancing the unboxing experience. This is not possible with FBA, where all products are shipped in Amazon-branded boxes.
Sellers must create an Amazon Seller Central account and list their products.
Optimize product listings with high-quality images, descriptions, and relevant keywords to boost visibility and conversions.
Sellers can self-store their inventory or partner with a 3PL provider for warehousing and distribution.
If using Daguer Logistics, sellers benefit from strategically located fulfillment centers, reducing shipping times and costs.
When a customer places an order, sellers must pick, pack, and ship the product within Amazon’s required timeframe.
Orders must include valid tracking information to ensure transparency.
Sellers can purchase shipping labels through Amazon’s Buy Shipping program or use their own carrier accounts.
Fast, on-time shipping is crucial for maintaining high seller performance ratings.
Sellers must handle returns directly and provide support for customer inquiries.
If partnering with Daguer Logistics, sellers can outsource returns management, reducing the burden of handling customer refunds and exchanges.
· If you need warehousing and fulfillment services
· If you want Amazon’s Prime badge to attract more customers
· If you prefer to outsource customer service and returns
· If you want more control over fulfillment and branding
· If you sell large, heavy, or temperature-sensitive items
· If you want to reduce Amazon’s fees and restrictions
· If you want a dedicated fulfillment partner like Daguer Logistics
Amazon FBM sellers must account for several fees, including referral fees, a monthly subscription fee, and per-item selling fees. Below is an overview of referral fee rates by category:
For a full list of Amazon referral fees, visit Amazon Seller Central.
Without FBA, sellers lose Amazon’s Prime badge, which can impact conversion rates. However, sellers can enroll in Seller Fulfilled Prime (SFP) if they meet Amazon’s strict shipping criteria.
Handling inventory, packaging, and shipping can be overwhelming. A 3PL provider like Daguer Logistics can streamline these processes, ensuring fast and reliable shipping.
Unlike FBA, where Amazon handles customer service, FBM sellers must manage inquiries, complaints, and returns themselves.
Daguer Logistics operates strategic fulfillment centers to store inventory closer to customers, reducing shipping times and costs.
With real-time inventory management and automated shipping, Daguer Logistics ensures quick processing of Amazon FBM orders.
Daguer Logistics partners with major carriers (UPS, FedEx, USPS, and DHL) to secure discounted shipping rates.
Handling returns can be time-consuming. Daguer Logistics offers hassle-free returns processing, improving customer satisfaction.
Beyond Amazon, Daguer Logistics supports Shopify, Walmart, eBay, and other marketplaces, making it easy to manage all fulfillment needs from one platform.
Amazon FBM is a powerful fulfillment option for sellers looking for greater control, reduced fees, and improved branding opportunities. While it comes with challenges, partnering with a 3PL like Daguer Logistics ensures seamless fulfillment, fast shipping, and cost savings.
If you're considering Amazon FBM, let Daguer Logistics handle your fulfillment so you can focus on growing your business!
1. Can I use Amazon FBM and FBA together?
Yes, many sellers use a hybrid approach to maximize flexibility and optimize costs.
2. How do I qualify for Seller Fulfilled Prime (SFP)?
To qualify, sellers must maintain high shipping performance metrics, including on-time delivery and low order defect rates.
3. What are the costs of Amazon FBM?
Amazon FBM sellers pay referral fees, a monthly subscription fee ($39.99 for Pro accounts), and per-item selling fees.
4. How can Daguer Logistics help with Amazon FBM?
Daguer Logistics provides warehousing, automated fulfillment, discounted shipping rates, and returns management, making Amazon FBM seamless.
5. Is Amazon FBM better than FBA?
It depends on your business needs. FBM offers greater control and lower fees, while FBA provides Amazon’s Prime benefits and automated fulfillment.
