FBM – Fulfillment by Merchant

Definition updated on November 2023

What is FBM (Fulfillment by Merchant) and how does it differ from FBA?

A method of selling on Amazon where the seller, such as a sneaker reseller, is responsible for handling the entire fulfillment process themselves. This means that after a sale is made on the Amazon platform, the seller is in charge of storing, packing, and shipping the product directly to the customer. Unlike FBA (Fulfillment by Amazon), where Amazon manages these logistical tasks, FBM sellers maintain full control over their inventory and shipping practices. For sneaker resellers, FBM offers several advantages. Firstly, they can save on FBA fees by managing storage and fulfillment in-house or through a third-party service. This might be especially beneficial if they have limited inventory or if they're selling high-priced sneakers where margins matter. Additionally, FBM allows resellers to offer unique packaging or promotional materials that can enhance the unboxing experience for the buyer. However, FBM sellers face challenges in meeting Amazon's strict delivery and customer service standards. Any delays or issues can affect their seller performance metrics. They also miss out on the Prime badge, which many Amazon shoppers specifically look for, leading to potentially fewer sales. In conclusion, FBM offers greater control over the fulfillment process for sneaker resellers, but it comes with increased responsibilities and potential challenges in meeting customer expectations and platform standards.

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