Fulfilled by Merchant (FBM)

What is Fulfilled by Merchant (FBM)?


Fulfillment by Merchant (FBM) is a method of fulfilling orders in which a third-party seller handles all aspects of the order fulfillment process, including storage, picking, packing, and shipping. Unlike Fulfillment by Amazon (FBA), where Amazon handles these tasks on behalf of the seller, FBM sellers are responsible for managing their own inventory and fulfilling orders directly to the customer.

FBM is often used by smaller sellers or those who sell niche products that are not well-suited for FBA. It allows sellers to have more control over the fulfillment process and can be more cost-effective for sellers who have a smaller volume of sales. However, FBM can also be more time-consuming and require more resources than using FBA.

With FBM, sellers are responsible for managing their own inventory and ensuring that products are shipped on time and in good condition. This can involve using third-party logistics providers, such as warehouses or shipping companies, to manage the storage and shipping of products. FBM sellers also handle customer service and returns, which can require additional resources and support.
Overall, FBM provides sellers with more control over the fulfillment process, but also requires more resources and can be more complex than using FBA. The choice between FBA and FBM ultimately depends on a seller's business needs, volume of sales, and ability to manage the fulfillment process effectively.

More Terms

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Conversion Rate

What is Conversion Rate?

The conversion rate is the percentage of your total website traffic that purchases from your store.

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What is CPM?

CPM stands for "Cost per Mille" (also known as "Cost per Thousand"), which is a metric used in advertising to measure the cost of reaching one thousand impressions or views of an advertisement.

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Customer Lifetime Value (CLV)

What is Customer Lifetime Value (CLV)?

Customer Lifetime Value (CLV) represents the total funds a consumer spends at a business for products and services without any specific time measurements restricting the data.