Amazon Fulfilled by Merchant is a method in which a business selling on Amazon manages its fulfillment processes. The seller is responsible for inventory storage, order fulfillment, returns, and customer service. Whereas, with FBA, companies have prime status, and Amazon handles fulfillment for you as well as customer service.
How does it work?
The Amazon fulfilled by a merchant is when a business fulfills their orders when they’re sold, either through self-fulfillment or by partnering with a third-party logistics provider. New start-ups choose this procedure due to FBA having an approval process and additional costs.
Steps to become FBM
- List your products on Amazon
- Warehouse products in your fulfillment center
- Ship orders out on time
Advantages of FBM
- Access Amazon’s customers with fewer fees
- Avoid Amazon’s strict FBA requirements
- Retain more significant control of your business
- Get better support
How much does it cost?
- A Monthly Subscription Fee
A fee of $39.99 per month
- Referral Fees
A referral fee is charged when a product is sold. The cost varies depending on the product category.
- Per-item Selling Fee
Pro plan: No fee
Individual seller: $0.99 per product
- Other Fees
Shipping, labeling, long-term storage