The Fulfilled by Merchant FBM process is when the seller uses Amazon as a platform to sell the product, but packages and ships the product to the buyer. Amazon calls this shipping process 'Merchant Fulfilled Shipping or Fulfilment by Merchant.
In fulfillment by merchant shipping, the Seller is responsible for managing issues with product purchases on their own instead of having these issues handled by Amazon associates like sellers who use FBA services.
There are several reasons choosing Fulfillment by Merchant may be preferable to using Fulfillment by Amazon. First, merchants can save on shipping costs through use of Amazon's global customer base and shipping capabilities. Second, merchant products are typically available for purchase instantly, eliminating the need for product sampling or wait times associated with traditional brick-and-mortar stores. Finally, with FBM, you have the ability to track your shipments in real-time, giving you a clear understanding of the status of your order throughout the entire process.
Sellers with small amounts of inventory may benefit from using FBM options over paying the costs of FBA services.
A fulfillment center is a physical location where associates pick, pack, and ship products to customers.
There are many different services offered by FBA for Amazon sellers, but the most common ones include:
- Product packaging and shipping
- Order processing and fulfillment
- Returns management
Amazon recommends packaged products should be able to withstand a three-foot drop test unharmed.
Amazon requires its sellers to maintain high shipping metrics and a high level of customer satisfaction in the following areas.
On-time Delivery Rate is one of the most important metrics Amazon sellers using FBM services need to track. It is important for sellers using FBM services to select the best shipping option to get packages delivered to customers on time in the allotted timeframe.
Sellers with a small volume of merchandise to pack and ship can update their shipping preferences in Seller Central. Those with larger volumes of packages to deliver in more locations should consider using FBA services that include protections and discounted shipping services.
FBM shippers are required to match or exceed Amazon's return policy.
Amazon allows you to accept returns within 14 days of delivery, as long as the item(s) is in the same condition that you received them. You also have seven days to cancel a purchase after it has been placed. Pre-paid labels cover returns that fall under the policy.
This service is included with buy shipping services. These labels are supplied to sellers and customers for free as an included service. They help control the customer experience while adhering to Amazon shipping standards set for all.
Answer customer questions within 24 hours to avoid being penalized.
Sellers enter FBM into their Amazon Seller Central account. FBM manages and fulfills orders for sellers on behalf of Amazon. Sellers receive all proceeds from the sale, minus returns and fees paid to FBM.
Choose between FBM and Vendor Fulfillment based on the services offered, seller preferences, and shipping needs.
Fulfillment by Merchant Alternatives is a program through Amazon that allows sellers to outsource their shipping and packing needs. This service is especially beneficial for small businesses that do not have the manpower or resources to fulfill orders on their own.
Sellers can choose from a variety of fulfillment by merchant alternatives providers, including USPS, UPS, FedEx, and DHL. Each provider has its own pros and cons; for example, USPS rates are lower but delivery times may be longer than with other carriers. Sellers can also opt to use multiple providers in order to maximize efficiency and avoid potential shipping delays.
