FBM stands for Fulfilled by Merchant: the seller stores their own stock and ships every order themselves (or via their own 3PL) rather than using the marketplace's fulfilment service. On Amazon it is also called MFN, the Merchant Fulfilled Network.

Is FBM cheaper than FBA?

Often, yes, on a per-unit basis, because you avoid the marketplace's fulfilment and storage fees. But you take on your own shipping, labour and warehousing costs, so the real saving depends on your own logistics efficiency and product type.

Can FBM offers win the Buy Box?

Yes. FBM offers can win the Buy Box, but they must compete on delivery speed and reliability. Because fast fulfilment is weighed heavily, an FBM seller needs strong shipping performance to beat a marketplace-fulfilled competitor at a similar price.

When should I use FBM instead of FBA?

FBM tends to win for bulky, heavy, slow-moving, high-value or custom products where marketplace fulfilment fees are uneconomical, or when you need control over packaging and returns. Fast-moving, delivery-sensitive items usually do better through marketplace fulfilment.

Glossary

Fulfilled by Merchant

FBM · Merchant Fulfilled Network · MFN

Fulfilled by Merchant (FBM), also known as the Merchant Fulfilled Network (MFN), is the model in which the seller stores their own inventory and picks, packs and ships every order themselves (or through their own third-party logistics provider) instead of using the marketplace's fulfilment service.

Last updated: June 2026

Key facts

With FBM you keep stock in your own warehouse (or 3PL) and handle shipping and customer service yourself.
You avoid marketplace fulfilment and storage fees, keeping more control over cost and the customer experience.
FBM offers must hit the marketplace's delivery-speed and reliability expectations to stay competitive for the Buy Box.
FBM suits bulky, slow-moving, high-value or custom products where marketplace fulfilment is uneconomical.

How FBM works

Under Fulfilled by Merchant, you are responsible for the full logistics chain. Your stock sits in your own premises or with a third-party logistics (3PL) partner you choose. When an order comes in, you pick, pack, ship it with a carrier of your choice, upload tracking, and handle any customer-service questions and returns yourself.

The marketplace still processes the sale, collects payment and lists your offer, but it does not touch the goods. On Amazon this is also called the Merchant Fulfilled Network (MFN). The equivalent self-fulfilment model exists on virtually every marketplace, since not every seller can or wants to use the platform's own warehouses.

Because you control the shipping, you also control packaging, branding and how returns are handled — which is valuable for brands that care about the unboxing experience or sell fragile, oversized or made-to-order goods.

When FBM makes sense

FBM is usually the better choice for products that are bulky or heavy (where marketplace fulfilment fees are punishing), slow-moving (where storage fees pile up), high-value (where you want tighter control), or customised and made to order. It also keeps more margin per unit because you avoid the platform's per-unit fulfilment and storage charges.

The catch is delivery performance. Marketplaces reward fast, reliable shipping, and the Buy Box algorithm weighs fulfilment speed heavily. An FBM offer with slow or unreliable delivery will struggle against a marketplace-fulfilled competitor at a similar price. Sellers who use a good carrier mix and meet handling-time promises can still win the Buy Box on FBM.

Many sellers run a hybrid: marketplace fulfilment for fast-moving, delivery-sensitive products and FBM for everything else. The decision should come down to the landed cost and delivery performance you can achieve per product, not a blanket policy.

Example

A seller of oversized rugs lists them on Amazon and Kaufland as Fulfilled by Merchant. The rugs are too bulky and slow-moving for marketplace fulfilment fees to make sense, so the seller ships each order from its own warehouse with a freight carrier, controls the packaging, and avoids monthly storage charges on large, slow inventory.

Why it matters for marketplace sellers

FBM avoids marketplace storage and fulfilment fees, protecting margin on bulky, slow or low-turnover products.
You control packaging, branding and returns handling, which matters for brand-conscious or fragile-goods sellers.
To stay Buy Box competitive on FBM you must meet the marketplace's delivery-speed and reliability expectations.
Running FBM across several marketplaces makes accurate, real-time inventory sync critical to avoid overselling shared stock.