Amazon FBM Business: Complete Beginner’s
Guide to Selling on Amazon in 2025
📌 Introduction
When it comes to selling on Amazon, you’ll come across two main fulfillment models:
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FBM (Fulfillment by Merchant) – You handle the storage, packing, shipping, and customer service yourself.
In our Amazon FBA Business, we explained how FBA works and why many sellers choose it.
This guide will cover everything you need to know about Amazon FBM in 2025, including how to start, the pros and cons, and tips for success.
What is Amazon FBM?
FBM (Fulfillment by Merchant) means you, the seller, are responsible for:
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Storing your products
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Packing and shipping orders
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Handling returns and customer service
Amazon’s role:
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Provides the marketplace (your product listing is visible on Amazon.com)
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Processes customer payments
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Takes a referral fee for each sale
👉 In simple terms: With FBM, you sell it, you ship it.
Amazon FBA vs. FBM: What’s the Difference?
| Feature | FBA (Fulfillment by Amazon) | FBM (Fulfillment by Merchant) |
|---|---|---|
| Storage & Shipping | Handled by Amazon | Handled by you |
| Customer Service | Amazon manages | You manage |
| Fees | Higher (storage + FBA fees) | Lower (only referral fee + your shipping costs) |
| Control | Limited | Full control over logistics |
| Best For | Beginners, fast-scaling sellers | Experienced sellers, unique/niche products |
💡 For a full breakdown of Amazon FBA, check out our Amazon FBA Business Guide.
Why Choose Amazon FBM in 2025?
While FBA is popular, FBM has its advantages:
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✅ Lower costs → No FBA storage or fulfillment fees.
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✅ More control → You decide packaging, shipping speed, and returns process.
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✅ Good for large/heavy products → FBA fees for bulky items can be expensive.
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✅ Niche sellers → If you sell unique or custom products, FBM makes sense.
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✅ Hybrid sellers → Many sellers use both FBA + FBM depending on product type.
Step-by-Step: How to Start an Amazon FBM Business in 2025
Step 1: Create Your Amazon Seller Account
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Go to Amazon Seller Central.
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Enter tax information, payment details, and verification documents.
Step 2: Select FBM as Your Fulfillment Method
When you create a product listing, Amazon asks how you want to fulfill orders:
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Choose “I will ship this item myself (FBM).”
Step 3: Find a Product to Sell
Just like FBA, you need profitable products.
Tips:
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Choose products you can store and ship easily.
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Avoid extremely fragile or regulated items.
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Use Amazon Best Sellers, Movers & Shakers, Jungle Scout, or Helium 10 to research.
Step 4: Set Up Inventory & Storage
Since Amazon won’t store products for you, you must:
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Track stock carefully—Amazon penalizes late shipments or cancellations.
Step 5: Manage Shipping & Packaging
FBM sellers must handle delivery.
Options:
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Use carriers like USPS, UPS, DHL, or FedEx.
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Negotiate bulk shipping rates if volume is high.
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Ensure proper packaging to avoid damage.
👉 If you qualify, consider Seller Fulfilled Prime (SFP) to offer Prime shipping with your own logistics.
Step 6: Create a High-Quality Amazon Listing
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Title: Include keywords + benefits.
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Images: High-resolution, lifestyle photos.
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Bullet Points: Highlight key features.
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Description: Tell a compelling story.
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Price: Competitive pricing is key for FBM sellers since you don’t have automatic Prime benefits.
Step 7: Fulfill Orders & Provide Customer Service
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Ship orders within the promised time (usually 1–2 days).
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Provide tracking numbers.
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Handle returns and refunds quickly.
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Maintain excellent Seller Performance Metrics (late shipments, cancellations, defect rate).
Costs Involved in Amazon FBM
Unlike FBA, FBM has fewer Amazon fees—but you’ll spend on logistics.
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Closing Fee (for media items like books).
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Shipping Costs → Paid directly to carriers.
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Storage/Warehouse Costs → If not storing at home.
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Packaging Materials → Boxes, tape, labels.
Pros & Cons of Amazon FBM
✅ Pros:
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Lower Amazon fees
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Full control over shipping & branding
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Better margins for large/bulky products
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Flexible (hybrid with FBA possible)
❌ Cons:
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No automatic Prime badge (unless SFP approved)
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You must handle storage, shipping, returns
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Slower shipping = less competitive against FBA sellers
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Time-intensive if scaling big
Amazon FBM vs. FBA: Which Should You Choose?
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If you’re a beginner and want Amazon to handle logistics → Go with FBA (see our FBA Beginner’s Guide).
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If you have unique, bulky, or custom products → FBM might be better.
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If you want control over packaging and shipping → FBM is ideal.
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If you want the best of both worlds → Use a hybrid model (FBA for small, fast-moving products + FBM for bulky/slow movers).
Tips for Success with Amazon FBM in 2025
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Invest in reliable shipping partners → Late deliveries hurt your seller score.
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Automate inventory management → Use tools like Zoho Inventory, ShipStation, or SellerActive.
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Offer great customer service → Respond fast to inquiries and returns.
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Optimize product listings → SEO-friendly titles, bullet points, and keywords.
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Keep shipping costs low → Negotiate bulk deals with carriers.
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Consider hybrid selling → Don’t rely on only FBM—use FBA for some products.
FAQs
1. Can FBM sellers still offer Prime shipping?
Yes, but only if you qualify for Seller Fulfilled Prime (SFP). You must meet strict shipping standards.
2. Is FBM cheaper than FBA?
For large or heavy products—yes. For small, lightweight items—FBA is often cheaper.
3. Do FBM sellers get less visibility?
Not necessarily, but FBA products often rank higher due to Prime eligibility.
4. Can I switch from FBM to FBA later?
Yes—you can change fulfillment methods anytime in Seller Central.
✅ Conclusion
Amazon FBM is a powerful business model in 2025 for sellers who want more control, lower fees, and flexibility. While it requires more work than FBA, it’s perfect for sellers with unique products, larger items, or established logistics systems.
If you’re unsure which model to choose, check out our full guide on Amazon FBA Business and compare both.
👉 The key is to start small, optimize your listings, and deliver a great customer experience. Over time, FBM can grow into a sustainable and profitable business.