What is FBM (Fulfilled by Merchant)?

You store and ship orders yourself instead of using Amazon's warehouses.

FBM - Fulfilled by Merchant - means you list on Amazon but store, pack and ship orders yourself, and handle the customer service that comes with them. It avoids FBA's fulfilment and storage fees, and it is how many sellers handle oversized items, fragile goods or products that move too slowly to justify warehouse fees.

The cost is competitiveness: FBM offers usually lack the Prime badge and convert worse against FBA competition on the same listing. Most arbitrage sellers default to FBA and use FBM selectively where the fee math or the product's nature favours it.