FBM (Fulfillment by Merchant) is a model where the seller manages the entire order fulfillment process: storage, packaging, and shipping. Amazon acts as the selling platform and supports the checkout process, but all logistics lie with the seller.
Advantages of FBM:
- Low costs – sellers can avoid storage and fulfillment fees, keeping more margin.
Control over product and customer interaction – the seller controls the process from start to finish, including packaging, shipping and customer support.
- Flexibility in shipping – FBM allows sellers to work with a variety of logistics companies, selecting options that are more suitable in terms of cost and timing.
Cons of FBM:
- Logistical complexity – sellers must have experience in logistics and warehouse management, especially as orders grow.
- Limited access to Amazon Prime – FBM items typically do not receive Prime status.
How the prep center helps:
- Simplify logistics – the prep center takes care of storing, processing, and shipping orders, allowing the seller to avoid having to manage their own warehouse.
- Optimize logistics costs – the prep center can offer more affordable storage and shipping rates than doing it yourself or renting warehouses.
- Reduced burden on the seller – the prep center processes returns and handles order maintenance, taking routine tasks off the seller’s hands.
FBM is well suited for merchants who sell large or unique products for which the FBA model may be too expensive, or who have their own established supply chains.
