Amazon FBM in 2025: A Guide for Sellers Who Handle Their Own Fulfillment

For many Amazon sellers in 2025, Fulfilled by Merchant (FBM) remains a practical, flexible way to control operations and lower costs. Instead of shipping your inventory to Amazon’s warehouses, FBM allows you to store and ship products yourself — either from your home, a 3PL provider, or a dedicated warehouse. You manage logistics, but Amazon still provides the customer-facing storefront and the transactional engine.

Amazon FBM means the seller is responsible for the entire fulfillment process. You handle inventory storage, order packaging, shipping, and even returns. While this means more responsibility, it also allows for greater control over margins, shipping methods, and inventory strategy.

Unlike Fulfilled by Amazon (FBA), you don’t pay Amazon’s storage or fulfillment fees. You set your own shipping rates or offer free shipping. This flexibility is why FBM is attractive for sellers dealing with large or heavy items, handmade or customized goods, and products with regional shipping needs.

Whether you're fulfilling from your own garage or using a third-party logistics provider, Amazon FBM gives you more freedom — but with it comes the challenge of maintaining performance metrics. Timely shipping, accurate tracking, and responsive customer service are all crucial to keeping your Amazon FBM account in good standing.

While both models allow you to list and sell products on Amazon, they differ significantly in execution. Here’s a side-by-side comparison:

Sellers aren’t limited to one model. Many operate hybrid setups, using FBA for fast-moving or lightweight items and FBM for large, high-ticket, or customized products. It’s not about FBA vs FBM — it’s about using each where it performs best.

Success with FBM Amazon starts with data. Since you’re handling everything manually or semi-manually, using the right tools makes a huge difference in avoiding common mistakes like stockouts, overpriced listings, or unprofitable SKUs.

Tools like Jungle Scout, Helium 10, and AMZScout help you identify what’s worth selling in the first place. You can research seasonal trends, check the number of competitors on a listing, and estimate potential profit before you invest in inventory.

Jungle Scout Sales Estimator is especially useful for FBM sellers:

This helps prevent dead stock and over-ordering. For example, if a product has a BSR of 8,000 in Kitchen & Dining and is estimated to sell 500 units/month, you can forecast storage space, packaging needs, and fulfillment time more accurately.

Customer reviews can impact Buy Box eligibility, especially in FBM. Tools like FeedbackWhiz and Helium 10 Alert keep track of reviews and alert you to negative feedback that could affect your seller rating.

Scaling FBM on Amazon means moving from manual tasks to optimized systems. Here are ways to do it smartly:

1. Choose the Right Fulfillment Setup

2. Standardize Your Shipping Workflow
Use shipping software (like ShipStation or ShippingEasy) to print labels, manage rates, and sync tracking data automatically. Amazon FBM shipping requirements demand consistency.

3. Packaging Matters
Branded packaging isn’t required, but sturdy, accurate, and protective packaging reduces returns. Include packing slips or thank-you notes if appropriate.

4. Understand Amazon’s FBM Metrics
Monitor:

Failing to meet these can lead to deactivation of your FBM Amazon account.

5. Handle Returns Professionally
Make returns easy. Even if you're not required to offer prepaid labels, a smooth return experience boosts seller trust and ratings.

6. Automate Where You Can
As you grow, consider integrating warehouse management (WMS), enterprise resource planning (ERP), or transportation management (TMS) systems. These help track orders, sync inventory, and reduce errors.

Amazon FBM in 2025 offers sellers flexibility, control, and often, better profit margins. But it also demands discipline. If you're wondering how to sell on Amazon FBM, start by understanding your logistics capabilities, then support them with data tools and reliable processes.

Whether you're selling handmade furniture, operating out of your garage, or managing a lean 3PL network, FBM can be a powerful model. Use it to test new products, bypass FBA fees, or expand where Amazon fulfillment isn’t viable. And remember: success in FBM doesn’t come from cutting corners — it comes from strategic planning, fast fulfillment, and a clear understanding of what FBM on Amazon really requires.