Fulfillment by Merchant

Fulfillment by Merchant (FBM) is selling on Amazon while the seller or its 3PL stores and ships the orders.

Why it matters for ecommerce brands

FBM gives you control over your Amazon orders and avoids FBA fees and inventory limits, but you carry Amazon's shipping performance standards yourself. It suits oversized, slow-moving, high-value, or customized items, and works as a backup when FBA stock runs out. For example, a bulky item that sits in FBA for months can build up storage and aged inventory charges, while shipping it from your own 3PL at $14 per order may cost less in total. Keep late shipments and cancellations low, since they count against your account health.

Origin

The term fulfillment by merchant arose after Amazon launched FBA in 2006, naming the alternative in which Marketplace sellers store and ship orders themselves or through their own 3PL.

Common questions

When is FBM better than FBA?
FBM can make sense for oversized, slow-moving, or highly customized products where FBA fees or rules are costly. The seller must still meet Amazon's shipping and performance standards.
What performance metrics does Amazon track for FBM sellers?
Key targets include an order defect rate under 1%, a late shipment rate under 4%, a pre-fulfillment cancel rate under 2.5%, and a valid tracking rate above 95%. Missing them can restrict your listings or account.
Can FBM orders get the Prime badge?
Yes, through Seller Fulfilled Prime, which requires passing a trial period and then keeping up strict delivery speed and performance standards. Check Seller Central for current enrollment status and requirements, since Amazon changes them often.