How to sell & ship your products with Amazon Merchant Fulfilled Network FBM

Jun 06, 20235 mins to read
Selling with Amazon FBM sellerwix academy

Selling products on Amazon can be a highly profitable and flexible way to earn income, as evidenced by the 6 million sellers currently using the platform. With the right resources and time, anyone can become an Amazon seller.

While the majority of Amazon sellers use the Fulfillment by Amazon (FBA) method to store and ship products from Amazon’s warehouses, some have turned to Fulfillment by Merchant (FBM) due to inventory restock limits affecting FBA.

In this article, we will provide you with the necessary information to begin selling on Amazon and fulfilling products through FBM.

Amazon FBM business

What is MFN - FBM?

Merchant Fulfilled Network (MFN) is Amazon’s terminology for Fulfilled by Merchant (FBM). It refers to a method of selling where sellers list products in Amazon stores but manages all storage, shipping, and customer support independently. There are various factors to consider when choosing how to fulfill customer orders when you sell in Amazon’s stores. It can be a challenge to decide how to store inventory, pack and ship products, and handle returns or refunds, all while staying on top of excellent customer service.
Amazon merchant fulfillment network FBM business

How MFN (FBM) works?

Sellers with the Individual plan
These sellers use Amazon’s set shipping rates for all products. Individual sellers ship orders at the set rates even if the shipping credit is less than the total shipping costs, so it’s important to price items in a way to make sure you’ll earn a profit.
Sellers with the Professional plan
Sellers on the professional selling plan who choose FBM can set their own shipping rates. They can customize shipping templates for specific regions domestically or internationally including handling and transit times. Professional sellers can customize shipping charges by order, per item, and/or weight. You can also create a multitude of shipping templates and assign them to your specific offers to match your logistic capabilities for specific product types. Remember that the referral fee is calculated from the total sale price, which includes the item price, shipping cost, and any gift-wrapping charges. Learn more about shipping rates on the Professional plan.
process of merchant fulfillment network

What are FBM and FBA?

Fulfillment by Merchant (FBM) refers to a method of selling where a seller lists products on Amazon but manages storage, shipping, fulfillment, and customer support independently. Amazon refers to this as Merchant Fulfilled Network (MFN).
Fulfillment by Amazon (FBA) refers to a method of selling where you send products to Amazon’s fulfillment centers, and we pick, pack, ship, and provide customer service for those products.
type of business opting for Amazon fulfillment by merchant FBM

Which types of businesses will benefit most from opting for Amazon FBM?

Amazon recommends situations where you might consider using their Merchant Fulfilled Network (i.e., FBM). They suggest that FBM could be most suitable for you if one or more of the following situations applies:
FBM suitable for your business

Obviously, not all of these will apply to every seller using FBM. For example, many large-scale Amazon sellers opt for FBM because they sell through multiple channels and already have smooth-running logistics systems.

Amazon clearly wants to sell FBA services, however. For example, Amazon’s help files on FBM highlight that “Sellers who adopted FBA last year saw 20-25% higher sales.” Nonetheless, for many businesses, FBM will be the most suitable option.

The main benefits of selling using Amazon FBM/MFN

The main benefit of using FBM is that it ensures you control your inventory. However, assuming you can store and ship your merchandise and take on responsibility for customer support inquiries, returns, or complaints, you may be able to price your goods more competitively than with FBA, as you don’t have to pay Amazon’s fulfillment fees.

Another benefit of using Amazon’s MFN is that you can combine all your online sales channels with Amazon’s fulfillment network and provide fast delivery. You can operate your business using a single inventory source with full shipment tracking across all your sales channels.

Selling on Amazon with FBM

Wrapping Things Up

Most Amazon sellers can select FBA (Fulfillment by Amazon) or FBM (Fulfillment by Merchant). However, there are some cases where you have no option. For example, if your business model is based on dropshipping, you must opt for FBM, as the model relies on a third party to fulfill orders.

Another obvious use case for FBM is with Amazon Handmade, Amazon’s artisan-only community of sellers. In this case, artisans create unique goods they sell in the marketplace. As these are custom, you can’t sell them using FBA.

FBM is also better if you sell heavy, bulky goods, as Amazon FBA charges extra fees for handling oversized goods.

In other situations, however, both fulfillment models have pros and cons. Therefore, you might consider experimenting with FBA and FBM to see which works best for you.

How do you want to handle fulfillment? Your answer can make a big difference to your bottom line, so be sure to look carefully at all your options. As your business transforms, expect your fulfillment needs to also change. Focus on choosing the plan that best suits your business needs while keeping flexibility in mind as you scale.
Print On Demand At Scale with selling on Amazon with FBM
With insightful experiences in the eCommerce market, Sellerwix will be the fully integrated solution to manage and grow your business effortlessly. Let’s meet at or if you need any help. Follow our blogs to stay on top of Print On Demand trends!
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Nhu Giap
Marketing Executive
Hello! Besides marketing and the e-Commerce world, I am keenly interested in innovations, culture, content writing, and much more. Let’s connect!

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