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Fulfilment and fees

What is FBM?

Also known as Fulfilled by Merchant

FBM means the seller stores, packs and ships their own orders rather than using Amazon's warehouses. Amazon still handles the transaction and charges a referral fee, but no fulfilment fee.

Why it matters

FBM avoids fulfilment and storage fees, which can make it the better economics for large, heavy or slow-moving items where FBA fees would consume the margin.

The trade-off is Prime eligibility and the conversion advantage that carries, plus full responsibility for shipping speed and customer service — both of which feed your account health metrics.

Related

Terms that come up alongside this one

FBA
FBA is Amazon's fulfilment service: you ship inventory to Amazon's warehouses, and Amazon picks, packs, ships and handles customer service for each order in exchange for a per-unit fee.
Referral fee
A referral fee is the percentage of the total sale price a marketplace takes as commission. On Amazon it is typically 15%, though it varies by category from 8% to 45% and is subject to a minimum per item.

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