Fulfillment by Merchant (FBM) - Shipping by Seller on Amazon

Self-Responsible Logistics through Fulfillment by Merchant

As a seller, you have the option to handle shipping either through Amazon (Fulfillment by Amazon - FBA) or to handle shipping yourself. With Fulfillment by Merchant, or FBM for short, you take responsibility for storing and shipping your products yourself, as well as for customer service.

If you use FBM, you are responsible for:

• Setting shipping costs
• Managing orders
• Shipping costs to the customer
• Returns processing (return shipping costs, return inspection, return preparation)
• Responding to return requests within 48 hours
• Providing return labels to customers, e.g., via ERP system

Requirements for Fulfillment by Merchant

Amazon regularly checks your seller performance to monitor whether you meet Amazon's strict requirements and which shipping method is therefore suitable for you. The self-shipping options for FBM are standard shipping, premium shipping, express shipping, and Prime by Seller. You set the shipping costs for the end customer yourself in the FBM model. It is therefore possible to offer Prime status through self-shipping, as long as you are able to consistently meet the following requirements. If this is not possible, it can lead to complaints, loss of your approval for self-shipping, or even deactivation of your seller account.

The requirements include:

• Late delivery rate under 4%
• Cancellation rate under 2.5%
• Valid tracking number rate over 95%
• On-time delivery rate over 97%

Returns Processing

The same return conditions apply for FBA and FBM. The customer can return the product within 30 days without reason and will receive a refund of the selling price. A product with a selling price of over 40 euros can be returned free of charge within 14 days. Shoes, clothing, and handbags can be returned free of charge within 30 days. In the FBM model, you are responsible for returns yourself. You take responsibility for processing return requests within 48 hours. For a return, Amazon automatically retains 20% of the sales commission up to a maximum of 5 euros.

Which model is right for you depends on the product: Which Amazon Fulfillment Model is Worth It for Me?

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