Amazon FBM Fees & Costs for Sellers in 2024

They are many possibilities for sellers to sell their products through Amazon as the biggest and most popular eCommerce platform. Newbies also like to choose Amazon because of its consistency, better business scope, and trustworthiness. Using the proper fulfillment method is critical because it imposes the cost on you. Amazon offers three fulfillment methods: Fulfillment by Amazon (FBA), Fulfillment by Merchant (FBM), and Seller-Fulfilled Prime (SFP). Here, we are going to talk about Amazon FBM fees and costs in detail to help Amazon sellers understand all aspects of this method to get their orders to customers’ doors.

What is Amazon FBM?

Amazon FBM is also known as Amazon Merchant Fulfilled Network (MFN). In this fulfillment method, Amazon sellers are responsible for fulfilling the purchased products on Amazon. Sellers can manage FBM directly or become a partner with a third-party logistics service provider. Indeed, the merchant should fulfill the whole process from inventory storage, picking, packing, shipping, return, and customer service.

Newbies can only use this method to start their business on Amazon because setting up FBA takes time, and sellers need a few approvals for their Amazon FBA Business. Besides, they require to demonstrate inventory turnover. However, small businesses fulfill orders by the FBM method because the Amazon FBM costs are more reasonable for their business.

What is the Difference Between Amazon FBA & FBM?

Fulfillment by Amazon (FBA) is a fulfillment method in which Amazon has the whole responsibility for fulfilling products. A seller or a seller’s supplier sends the items directly to Amazon’s warehouse, and Amazon stores this inventory, picks, packs, and ships the sold product directly to the customer.

If customers subscribe to the Amazon Prime service, the shipping time would be only two days. Return and customer support are the other services that Amazon provides.

On the other hand, is Amazon FBM. Here, sellers use the Amazon platform to list their products on Amazon. But the merchant has to manage the rest, from storage, pick&pack, and shipment. Even return, and customer service is their responsibilities.

What Are Amazon FBM Fees?

When sellers decide to ship the products by themselves, they will incur some costs. These FBM charges depend on shipping and delivery options and vary from seller to seller.

Amazon FBM Shipping Fees

Based on the type of product you purchase, your shipping fees on Amazon are different. Every single item has a specific shipping fee, so you may charge more if buying multiple products from a seller. American customers have to pay according to the shipping rate listed below tables for domestic and international shipments:

* Includes APO, FPO, and U.S. Protectorate addresses.

** Some sellers offer reduced transit times when shipping orders. Please see the seller’s policies for more information.

Note: The seller themselves set the shipping charges for non-media products delivered outside the Continental United States. Please see the rates posted in the seller’s shipping policies.

To Know All the Details About Amazon FBA Fees & Costs, Click Here!

Who pays for shipping Amazon FBM?

In the FBM method, the customer/seller must also pay the shipping fees.

Amazon FBM Selling Fees

As a fee-based structure, Amazon FBM includes three main fees:

Monthly subscription fee

By subscribing to this Professional plan per month, you can waive additional fees for sold products.

Referral fees

It depends on the type of products you sell and varies between 6% and 45%. The referral fee table is available on Amazon’s website.

Other Fees

· High Volume Listing Fee

· Closing Fees

· Rental Book Service Fees

· Refund Administration Fees

Final Thought

When you choose the Amazon FBM method to fulfill your sold items, you should be careful about Amazon FBM Costs. Using FBM for fulfilling your product has some benefits, although it needs hard work. These benefits make it attractive to use as a primary or backup plan.

To become successful as an FBM seller, taking care of your reputation is critical. Therefore, you have to ship and deliver all orders on time. “Buy Shipping” is a feature that Amazon offers sellers to track their products and ensure a reliable and smooth fulfillment process.