Fulfillment By Merchant (FBM) is when you as a merchant maintain control over your entire fulfillment and shipping process. Instead of sending your products to an Amazon Fulfillment Center, you use your own resources and send the items directly to the customer. When you choose Fulfilment by Merchant (FBM), a merchant takes full control of the entire process, from purchase to shipping and receipt. This is different from what you do at Fulfilment by Amazon (FBA), where you outsource the entire process to Amazon itself.
The advantages of Fulfilment by Merchant at a glance:
- You have less paperwork to process because your stock stays in your own country and is not distributed among different European countries. This can involve a lot of paperwork.
- You are in direct contact with your customer.This way you can be sure that your customer service is in line with the quality that the customer expects from your company.
- You have more control over your stock.If you use Fulfilment by Amazon, you will regularly have to check whether your stock is not almost empty, after which you have to send it back to a fulfilment centre with all the associated costs.
When do you choose Fulfilment by Merchant (FBM)?
Selling items via Fulfilment by Merchant is beneficial for smaller entrepreneurs who sell fewer large quantities. You then save a lot of costs and have some margin left over.
How much does Fulfilment by Merchant (FBM) via Amazon cost?
You pay 2 rates if you sell your products via Amazon and want to ship yourself and do customer service:
- The monthly fee of € 39.95 this must be paid regardless of whether you have sold something or not;
- A platform fee per product sold is about 15% depending on the product you are selling.