Maximise Control & Lower Costs with Amazon FBM – A Complete Guide

by | Apr 21, 2023 | Learning, Trending

Are you looking for a more cost-effective and efficient way to sell on Amazon? Fulfilment by Merchant (FBM) is a powerful alternative to Fulfilment by Amazon (FBA) that can help you increase control over your inventory, lower fulfilment costs, and provide better customer service. In this article, we’ll explore the benefits of FBM on Amazon and provide tips on how to make the most of this fulfilment option.

Gain Complete Control of Your Inventory

Fulfilment by Merchant (FBM) is a powerful fulfilment option that gives you complete control over your inventory. With FBM, you have the ability to manage your own stock levels, set your own prices, and make quick decisions based on changes in demand. This flexibility allows you to maximise your profits and minimise your losses.

For example, if you notice that a particular product is selling quickly, you can increase the price to reflect the high demand. On the other hand, if a product is not selling as well as you had hoped, you can lower the price to make it more attractive to buyers. Additionally, you have the ability to decide when and how much stock to order from your suppliers. This allows you to maintain an optimal level of inventory, which can help to reduce the risk of stockouts, which can be costly and damage your reputation.

Save on Fulfilment Costs

Fulfilment by Merchant (FBM) can help you lower your fulfilment costs and increase your profits. When you use FBM, you are responsible for packaging and shipping your own products, which can save you money on fulfilment costs, especially if you’re already shipping products to customers through your own website or other sales channels.

In contrast, when you use Fulfilment by Amazon (FBA), you pay for Amazon to store, package and ship your products. These costs can add up quickly, especially for businesses with high volume sales. With FBM, you have the flexibility to choose your own packaging and shipping methods, which can lead to significant savings.

For example, if you already have a warehouse or a storage facility, you can use this space to store your products and save on storage fees. Additionally, you can negotiate shipping rates with your preferred carrier and pass on the savings to your customers. With FBM, you have the ability to choose the carrier and shipping method that best suits your business needs. This allows you to offer your customers a variety of shipping options, such as expedited shipping or international shipping, and can help you attract more customers and increase sales.

Expand Your Shipping Options

Fulfilment by Merchant (FBM) gives you the flexibility to offer a wider range of shipping options to your customers, thereby increasing your sales. With FBM, you have the ability to choose the carrier and shipping method that best suits your business needs. This allows you to offer your customers a variety of shipping options, such as expedited shipping or international shipping.

Offering expedited shipping options can attract customers who need their products delivered quickly, such as last-minute shoppers or customers with specific events or occasions. Additionally, international shipping allows you to expand your customer base beyond your domestic market and increase visibility on Amazon’s international marketplaces.

Furthermore, FBM gives you the ability to provide customised shipping options to your customers, based on their specific needs. For example, you can offer gift wrapping or gift messaging services, which can be particularly appealing to customers buying gifts for others.

Gain Insight into Your Sales

Fulfilment by Merchant (FBM) provides you with detailed sales data, giving you greater visibility into your business and helping you make informed decisions. With FBM, you have access to data such as the number of units sold, the average selling price, and the total revenue generated by each product. This information can help you identify which products are selling well, and which are not, allowing you to make strategic decisions about your inventory and pricing.

By understanding your customers’ preferences and buying patterns, you can make decisions about which products to stock and how to price them. For example, if a product is selling well, you may choose to order more stock and increase the price to maximise your profits. On the other hand, if a product is not selling well, you may choose to lower the price or discontinue the product to minimise your losses.

Furthermore, having access to detailed sales data can also help you identify new opportunities. For example, if you notice that a particular product is selling well in a specific region, you may want to consider expanding your marketing efforts in that region or even launching a new product that caters to that market.

Enhance Your Customer Service

Fulfilment by Merchant (FBM) allows you to provide exceptional customer service, which can help you build a loyal customer base and increase repeat sales. With FBM, you have direct contact with your customers and the ability to handle customer inquiries and concerns directly, which can help build trust and establish a personal relationship with your customers.

FBM enables you to handle returns, exchanges, and refunds in a timely and efficient manner, which can improve the customer’s experience. Additionally, FBM allows you to offer more personalised services to your customers, such as gift wrapping or gift messaging services, which can create a more positive buying experience and increase the likelihood of repeat sales.

Furthermore, FBM gives you the ability to track your customer interactions, which can help you identify patterns and trends in customer service requests. This information can help you improve your customer service and make it more efficient and effective.

Fun Fact: One lesser-known fact about Fulfilment by Merchant (FBM) on Amazon is that it can help sellers avoid long-term storage fees. Unlike Fulfilment by Amazon (FBA), where sellers are charged for storage on a monthly basis, even for products that are not selling, with FBM, sellers have the ability to store their products in their own warehouse or fulfilment centre and only order and store inventory as needed, thus avoiding long-term storage fees.

To make the most of FBM on Amazon, keep these top tips in mind:

  • Have a reliable and efficient system in place for packaging and shipping your products
  • Keep an eye on your inventory levels and adjust your prices as needed
  • Use detailed sales data to make informed decisions about which products to stock and how to price them
  • Provide exceptional customer service to build a loyal customer base and increase repeat sales


All in all, Fulfilment by Merchant (FBM) can be a great option for businesses looking to increase control over their inventory, lower fulfilment costs, and provide better customer service. With FBM, you can take your sales on Amazon to the next level. So, don’t wait any longer and give FBM a try to see the difference it can make for your business!

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The Editorial Team at Droptise represents a group of seasoned professionals dedicated to bringing you the most insightful and up-to-date content in the realm of e-commerce and digital trends. With a collective wealth of knowledge and expertise, our team ensures that every article meets the high standards that our readers expect. Whether it's the latest industry news, in-depth guides, or innovative strategies, the Editorial Team is committed to delivering excellence.

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