Vertical Financials
Marketplaces

FBM (Fulfilled by Merchant)

Definition

Selling on Amazon while storing and shipping the orders yourself or through your own 3PL, instead of using FBA.

FBM can make sense for large, heavy or slow-moving items where FBA fees are steep. You keep more control but lose some of the Prime advantage.

Your own shipping and 3PL costs replace FBA fees in your unit economics. Watch for: comparing FBA and FBM on fees alone without counting your own shipping and storage.

Example

Oversized furniture costs too much to store in FBA, so the brand ships it FBM from its own 3PL and pays only Amazon's referral fee.

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