FBM
Category: platform
Fulfilled by Merchant — seller handles storage and shipping themselves.
Fulfillment by Merchant (FBM) is a selling method on Amazon where the seller handles all aspects of order fulfillment themselves, including storage, packaging, shipping, and customer service. FBM sellers have more control over inventory and costs but may have lower visibility in search results and are not automatically Prime-eligible. For tax purposes, FBM sellers may have nexus only where they have physical presence or inventory.
Examples
- • A US-based FBM seller shipping from their own warehouse only has sales tax nexus in states where they have physical presence, unlike FBA sellers.
- • FBM sellers can use Seller Fulfilled Prime (SFP) to get Prime badge while handling fulfillment themselves, after meeting performance requirements.
- • FBM can be more tax-efficient than FBA since inventory stored in the seller's own warehouse does not create nexus in additional states.