There are many opportunities for sellers to sell their products through Amazon as the largest and most popular e-commerce platform. Startups also like to choose Amazon because of its stability, better business reach and reliability. Using the right execution method is important since it gives you money. Amazon offers three fulfillment methods: Fulfillment by Amazon (FBA), Fulfillment by Merchant (FBM), and Seller-Fulfilled Prime (SFP). Here, we will talk in detail about Amazon FBM fees and charges to help Amazon sellers understand all aspects of this process to get their orders to the door of customers.
What is Amazon FBM?
Amazon FBM is also known as Amazon Merchant Fulfilled Network (MFN). In this fulfillment process, Amazon sellers are responsible for fulfilling the products purchased from Amazon. Retailers can manage FBM directly or partner with other logistics service providers. Of course, the customer must fulfill all the procedures from product storage, packaging, shipping, returns and customer service.
Beginners can use this method to start a business on Amazon because setting up FBA takes time and sellers need some support for their Amazon FBA business. In addition, they want to show the turnover of goods. However, small businesses are fulfilling orders through the FBM system because Amazon FBM’s pricing makes sense for their businesses.
What is the difference between Amazon FBA and FBM?
Fulfillment by Amazon (FBA) is Amazon’s full-service fulfillment system for product fulfillment. A seller or supplier sends an item directly to an Amazon warehouse, Amazon stores the merchandise, picks, packages, and delivers the product sold directly to the customer.
If customers subscribe to the Amazon Prime service, the delivery time will be only two days. Returns and customer support are other services offered by Amazon.
On the other hand, is Amazon FBM. Here, sellers use the Amazon platform to list their products on Amazon. But the customer has to handle other things, from storage, pick & pack and shipping. One return and customer service is their responsibility.
You can see a comparison between FBA and FBM in this table:
What is Amazon’s FBM fee?
When sellers decide to ship products themselves, they generate revenue. These FBM fees are based on shipping and delivery options that vary from vendor to vendor.
FBM Amazon Shipping Fees
Depending on the type of product you purchase, your shipping costs on Amazon are different. Each item has a fixed shipping cost, so you may pay more if you buy multiple products from the same seller. US customers should pay according to the shipping rates listed below for domestic and international shipping:
*Includes APO, FPO and US storage addresses.
** Some sellers offer a shorter delivery time when orders are shipped. Please see the seller’s policy for more information. Please see the rates shown in the seller’s shipping policy.
Note: The seller themselves set the shipping charges for non-media products delivered outside the Continental United States. Please see the rates posted in the seller’s shipping policies.
Who pays for shipping from Amazon FBM?
In the FBM system, the buyer/seller also has to pay the shipping fee.
Amazon FBM Sales Fee
As a payment method, Amazon FBM includes three main fees:
- Monthly subscription fee
By subscribing to this monthly professional plan, you can skip the additional fees for products sold.
- Contribution fee
It depends on the type of product you sell and varies between 6% and 45%. The referral fee table is available on Amazon’s website.
- The volume list is high
- Closing costs
- Book Loan Fees
- Administrative compensation
When choosing an Amazon FBM system to process your products, you should pay attention to Amazon FBM prices. There are some benefits to using FBM to understand your product, even if it requires a lot of work. These advantages make it great to use as a main or background feature.
To be successful as an FBM marketer, it is important to take care of your reputation. Therefore, you must ship and deliver all orders on time. “Buy Shipping” is a feature Amazon offers sellers to track their products and ensure a reliable and smooth fulfillment process.