FBM Amazon - what is it, how does it work and what are the advantages

Do you want to expand your business and enter the international market? The stars of the FBM model, you can become a reference engraver in the field of electronic commerce. But what is FBM and how does it work? Well, let's sort it out.

What is FBM?

FBM (Fulfillment by Merchant) — a way of fulfilling orders, in which the seller sells the product through the marketplace, but carries out the entire process of processing and delivering the product himself.

Here's how this model works:

1. You place your goods on the marketplace.
2. The buyer places an order.
3. The marketplace notifies you about it.
4. You complete the order.

At first glance, everything seems simple, but in fact the FBM model is a whole set of operations that require sufficient resources and effort from the seller.

With FBM, the seller, not the marketplace, is responsible for the quality of order fulfillment

FBM operations

To start trading on Amazon or another trading platform based on the FBM model, you should first determine the future volume of work. This method of order fulfillment consists of the following stages:

1. Receipt of goods into the warehouse.

You need an organized warehouse space to store your goods. In order for the warehouse to work without delays and errors, the goods must be sorted, labeled and entered into the warehouse accounting program.

2. Storage of goods.

The seller is responsible for proper storage of goods in his warehouses. This includes proper packaging, ensuring optimal storage conditions (temperature, humidity, lighting, etc.) and protection against damage and theft.

3. Acceptance and processing of orders.

After receiving the order notification, the seller is responsible for processing, updating the order status and notifying the buyer about the progress of the work.

4. Completeness and packaging of the order.

The seller checks the availability of the goods, completes the order and prepares it for shipment.

To protect the product, use a variety of fillers and bubble wrap for packaging

5. Delivery.

You can deliver cargo from Ukraine to the USA on your own or use the services of transport companies. It is important that the goods reach the buyer without delays and damage.

6. Work with the return of goods.

This includes acceptance and inspection of the goods, if possible, correction of defects. Then the goods are stored until the next sale and shipment to the buyer.

The FBM model gives you full control over every step of the process. You set your own quality standards and provide personalized customer service. It helps build long-term relationships with customers and grow business.

Good customer reviews improve your ranking on the marketplace and drive further sales

Possible Problems and How to Avoid Them

Based on our client's experiences, we can highlight the following issues:

• High logistics costs: paying carriers, renting a warehouse, and training staff to process orders. All expenses fall on your shoulders.
• Limited international reach. FBM sellers face challenges with international shipping, customs duties, and clearance, making it harder to expand into foreign markets. Buyers prefer products with free, fast shipping and don’t want to deal with customs fees or long waits.
• Complicated customer service: if a package is refused, it will be returned, but you will pay for international shipping. Additionally, refund processing involves currency conversion.

How can you solve these problems?
Your own warehouse in the USA or Europe. Or a more realistic option — DiFFreight's warehouse services. We provide storage space for your goods, handle packaging and order fulfillment, manage returns, and oversee inventory. This allows you to expand your business internationally without significant costs or administrative hassles.

Pros and Cons of Amazon FBM

What is Amazon FBM? It’s a sales model where the seller manages the storage, packaging, and shipping of products directly to customers. Unlike FBA (Fulfilled by Amazon), where Amazon handles all logistics, FBM sellers maintain full control over order fulfillment.

Amazon is the largest marketplace in the USA and Europe, attracting numerous businesses. Amazon FBM has several advantages:

• Full control over logistics: the seller, not Amazon, chooses the shipping method, couriers, and warehouses.
• Lower fees (only pay for product listing).
• Flexibility — you can work with different warehouse carriers and optimize inventory management.

However, it also has some drawbacks:

• Amazon prioritizes FBA sellers: their products get the Amazon Prime badge and Buy Box (the primary “Buy Now” button).
• Higher shipping rates, as Amazon secures better deals due to bulk volumes.
• Errors in shipping can lead to negative reviews and lower ratings.
• High international shipping costs since items ship from your warehouse rather than Amazon's U.S. or European fulfillment centers.

That’s why you need to weigh which model—FBM or FBA—is more beneficial for your business.
DiFFreight offers Amazon FBA warehouse delivery services if you decide to go with this model.

Advantages of the FBM model for selling and delivering goods from Ukraine to Europe and the USA

Why you should choose FBM:

• maintain control over every aspect of the business;
• save money because you don't need to pay Amazon extra (for delivery or warehouse rental);
• you receive a full report on goods in real time;
• you can trade on various trading platforms in the USA and Europe: Amazon, Etsy, Ebay).

With the growth of e-Commerce, the FBM model is becoming relevant for the business of selling and delivering goods to Europe and the USA from Ukraine. Providing FBM services allows you to be a full-fledged market participant and build your own business on Amazon.

Expand your opportunities and work effectively in the international market with DiFFreight. Our team has its own modern warehouses in America and provides a full range of fulfillment services.