Fulfillment by Merchant, or FBM, is an ecommerce model in which the seller stores, picks, packs and ships orders itself or through its chosen logistics partners. The marketplace or storefront can generate the order while the merchant controls fulfillment execution.
What responsibilities remain with the merchant?
- Inventory availability and storage
- Order acceptance and allocation
- Picking, packing and labeling
- Carrier selection and dispatch
- Tracking and delivery updates
- Returns, claims and customer service
FBM vs. marketplace fulfillment
With FBM, the merchant owns the fulfillment workflow. Under marketplace fulfillment, inventory is typically stored and shipped through the marketplace's network. Fees, delivery promises, packaging rules and customer-data access differ.
When can FBM fit?
FBM can suit bulky, customized, slow-moving or tightly controlled products, and sellers with effective warehouse and carrier operations. It can be less suitable when marketplace delivery standards exceed the merchant's capability.
How should cost be measured?
Include storage, labor, packaging, software, carrier charges, failed delivery, returns and customer support. Comparing only the shipping label with a fulfillment-service fee understates the merchant's full cost.
Which metrics matter?
Track order-cycle time, on-time dispatch, delivery success, inventory accuracy, cost per order, damage, cancellation and return rate. Reconcile marketplace status with carrier and warehouse evidence.
