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What Is Fulfillment by Merchant (FBM)? | Speed Commerce

What Is Fulfillment by Merchant (FBM)?

3PL Glossary > Fulfillment by Merchant (FBM)

What Is Fulfillment by Merchant (FBM)?

Fulfillment by Merchant (FBM) is an e-commerce fulfillment model where sellers or businesses manage the entire order fulfillment process, from storage to shipping, directly from their own facilities. In the FBM model, sellers are responsible for warehousing their inventory, picking and packing products when orders are received, and arranging for the shipment of items to customers. This approach provides sellers with greater control over the fulfillment process but requires them to handle logistics, storage, and shipping logistics independently.

What Are the Differences between Fulfillment by Amazon and Fulfillment by Merchant?

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In an FBM arrangement, sellers may choose to use their own packaging materials and shipping carriers, allowing for customization of the unboxing experience for customers. Additionally, FBM allows sellers to fulfill orders from various sales channels, including their own website and other online marketplaces. While FBM offers flexibility and control, it also places the onus on sellers to manage inventory levels, handle peak seasons effectively, and ensure timely and accurate order fulfillment to maintain customer satisfaction.

FBM is particularly suitable for small businesses, unique or customized products, or sellers with a focus on niche markets where the economies of scale provided by fulfillment centers might not be as critical. It is an alternative to Fulfillment by Amazon (FBA), where sellers leverage Amazon's infrastructure for storage, packing, and shipping, but with the trade-off of certain fees and less direct control over the fulfillment process.


Yes. FBM provides sellers with full control over the packaging and branding of their products. Sellers can use customized packaging materials and create a unique unboxing experience for their customers, contributing to brand identity and customer satisfaction.

Yes. FBM allows sellers to fulfill orders from multiple sales channels, not limited to their own website. Sellers can manage orders from various online marketplaces and platforms, offering flexibility and diversification in their e-commerce strategy.

Yes. In an FBM model, sellers are responsible for managing customer returns and exchanges. This includes processing returns, inspecting products, and deciding on the appropriate action, such as returning items to inventory or processing refunds.

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