Amazon Fulfilled by Merchant FBM: UK Guide for 2026
Selling on Amazon UK gives businesses access to millions of potential customers.
However, getting your products listed is only the beginning. Once an order comes through, you need a reliable way to store your stock, pick and pack products, dispatch parcels and manage returns.
For many Amazon sellers, Fulfilment by Amazon (FBA) is the obvious choice.
Amazon stores your products, processes orders and handles much of the customer service process. However, it is not the only option.
Amazon Fulfilled by Merchant (FBM), also known as the Merchant Fulfilled Network (MFN), allows sellers to take control of their own fulfilment operations.
You can dispatch orders directly from your own warehouse, use a third party fulfilment provider or combine FBM with FBA to create a more flexible fulfilment strategy.
But how does Amazon FBM work in 2026? What does it cost in the UK, and how does it compare with FBA?
In this guide, we explain everything UK Amazon sellers need to know about fulfilled by merchant FBM, including how the process works, the advantages and disadvantages, Amazon selling fees, shipping requirements and how a specialist fulfilment partner such as Blue30 can support your Amazon business.
What Is Amazon Fulfilled by Merchant FBM?
Amazon Fulfilled by Merchant, commonly shortened to FBM, is an Amazon fulfilment method where the seller is responsible for storing inventory and delivering products to customers.
Rather than sending all your stock to Amazon fulfilment centres, you keep some or all of your inventory at your own premises or with a third party logistics provider.
When a customer places an order on Amazon UK, you or your fulfilment partner will:
Receive the order through Amazon Seller Central or an integrated system.
Locate the relevant product in your warehouse.
Pick the correct item from storage.
Pack the order according to your fulfilment and packaging requirements.
Purchase or arrange an appropriate delivery service.
Dispatch the parcel within the required handling timeframe.
Upload tracking information and confirm dispatch.
Manage returns, refunds and customer service obligations where applicable.
The main difference between FBM and FBA is who is responsible for fulfilment after the sale.
With FBA, Amazon handles the physical fulfilment of eligible orders.
With FBM, the seller takes responsibility for the process, although a third party such as Blue30 can manage the operational work on the seller’s behalf.
This means FBM does not necessarily require you to pack every order yourself. You can outsource the entire process while retaining greater control over your stock and fulfilment arrangements.
How Does Amazon FBM Work in the UK in 2026?
The process of using Amazon FBM is relatively straightforward, but successful fulfilment requires careful planning.
Here is how the process typically works for a UK based Amazon seller.
1. Create Your Amazon Seller Account
To sell products on Amazon UK, you need an appropriate Amazon Seller account.
Amazon offers two main selling plans:
Individual selling plan
Professional selling plan
The Professional plan provides access to additional selling tools, including advertising features, bulk listing functions and more advanced account capabilities.
If you intend to sell consistently or manage a growing catalogue, the Professional plan may be worth considering.
Your account type, product category and business circumstances will determine which selling features and fulfilment options are available to you.
2. List Your Products on Amazon UK
Once your seller account is established, you can list your products on Amazon.co.uk.
Your product listings should include accurate information, including:
Product titles
Product descriptions
Product images
Product dimensions
Product weights
Relevant product identifiers
Pricing
Available stock
Delivery settings
Your listing quality can influence how customers discover and evaluate your products.
It is also important to ensure that your products comply with Amazon’s category requirements and any applicable UK regulations.
For example, products such as cosmetics, food and drink, supplements and electrical goods may have additional compliance considerations.
If you are importing products into the UK, you should also ensure that the relevant labelling, safety and product documentation requirements are satisfied before selling.
3. Choose Your FBM Storage Solution
With Amazon FBM, you decide where your inventory is stored.
Depending on your business size, you could use:
Your own warehouse
A rented storage facility
A dedicated fulfilment centre
A third party logistics provider
A combination of your own storage and outsourced fulfilment
For a small business with limited stock, storing products at home might be a temporary option.
However, as order volumes increase, managing inventory in a spare room or garage can become impractical.
A dedicated fulfilment warehouse can provide better stock organisation, more efficient picking and packing, and a more reliable dispatch process.
Blue30 supports eCommerce brands with professional fulfilment services, helping businesses manage their inventory and customer orders without having to operate their own warehouse.
4. Receive and Process Amazon Orders
When a customer places an order, the details need to reach the person or company responsible for fulfilment.
This can happen through Amazon Seller Central, an integrated eCommerce system or an API connection between Amazon and your fulfilment provider.
The order information generally includes:
The product ordered
The quantity required
The delivery address
The selected delivery service
The expected dispatch timeframe
Your fulfilment team then picks the correct product, checks the order and prepares it for dispatch.
For businesses selling multiple products or managing several sales channels, inventory synchronisation is particularly important.
Without accurate stock information, you risk overselling products, cancelling orders or disappointing customers.
5. Pack and Dispatch Orders on Time
One of the most important responsibilities of an FBM seller is ensuring orders are dispatched within the handling time promised to the customer.
Amazon displays estimated delivery information to shoppers. This takes factors such as handling time and transit time into account.
Your actual delivery performance needs to match the expectations set on your listings.
When packing orders, consider:
Appropriate packaging for the product
Protection against damage during transit
Accurate shipping labels
Correct delivery addresses
Tracking availability
Packaging costs
Product specific requirements
For example, a clothing brand may need lightweight packaging, while a cosmetics business may require additional protection against leakage or breakage.
A professional fulfilment partner can help standardise these processes and reduce avoidable packing errors.
6. Upload Tracking Information
Once an order has been dispatched, you need to confirm shipment and provide the relevant delivery information in accordance with Amazon’s requirements.
Tracking information helps customers follow their orders and allows Amazon to monitor delivery performance.
Using a reliable courier and a fulfilment system that integrates with Amazon can make this process more efficient.
However, sellers should always check the latest Amazon requirements for their particular delivery arrangements.
7. Manage Returns and Refunds
With FBM, sellers remain responsible for managing the returns process in accordance with Amazon’s policies and applicable UK consumer law.
This may involve:
Providing a valid return address
Processing customer return requests
Inspecting returned goods
Issuing refunds where appropriate
Replenishing sellable stock
Recording damaged or unsellable inventory
If your fulfilment provider handles returns, you should agree in advance how returned products will be inspected, stored and reported.
For growing brands, a well organised returns process can help reduce losses and improve customer satisfaction.
Amazon FBM vs FBA: What Is the Difference?
Both FBM and FBA allow you to sell products through Amazon UK, but they operate differently.
Feature | Amazon FBM | Amazon FBA |
Inventory storage | Seller or third party warehouse | Amazon fulfilment centres |
Order fulfilment | Seller or fulfilment partner | Amazon |
Packing orders | Seller or fulfilment partner | Amazon |
Delivery arrangements | Seller selects suitable services | Amazon manages fulfilment delivery |
Returns management | Seller responsibility, subject to Amazon policies | Amazon manages applicable FBA returns processes |
Inventory control | Greater direct control | Stock is held within Amazon’s network |
Prime eligibility | Not automatic | Eligible products may qualify for Prime |
Branding opportunities | More flexibility over packaging, subject to Amazon requirements | Packaging is generally managed by Amazon |
Fulfilment costs | Warehouse, handling, packaging and delivery costs | FBA fulfilment, storage and other applicable fees |
Multi channel flexibility | Can support multiple sales channels through a suitable provider | Amazon Multi Channel Fulfilment may support other channels |
It is important to remember that FBM and FBA are not necessarily competing choices.
Many successful Amazon businesses use both fulfilment methods.
For example, a brand might use FBA for popular products that sell consistently, while using FBM for larger products, slower moving inventory or products that require specialised handling.
The most suitable approach depends on your margins, stock levels, delivery requirements and operational resources.
When Should You Consider Amazon FBM?
FBM may be suitable for businesses that want greater control over their fulfilment operations.
Here are some situations where it may be worth considering.
You Already Have a Warehouse
If you already operate a warehouse, you may be able to use your existing infrastructure to fulfil Amazon orders.
This can be particularly useful if you sell through several channels and want to keep your stock in one location.
For example, a UK clothing brand might sell through Amazon, its own website and wholesale customers.
Using a shared fulfilment operation can help simplify inventory management across these channels.
You Sell Larger or Specialist Products
FBA is not necessarily the most convenient option for every product.
Businesses selling bulky, heavy or specialist goods may find that direct fulfilment provides more control over packaging, storage and delivery arrangements.
However, the cost of shipping and storing larger products needs to be calculated carefully.
You Want More Control Over Your Packaging
FBM gives sellers greater control over how products are packaged and dispatched, provided the packaging complies with Amazon’s requirements.
This can be useful for brands that want to create a more consistent customer experience.
For example, a clothing company might use branded packaging, while a cosmetics brand may want to include carefully prepared product bundles.
Any inserts, promotions or packaging materials must comply with Amazon’s applicable rules.
You Want to Keep Stock Across Multiple Sales Channels
If you sell through Amazon, Shopify, eBay and other marketplaces, FBM can provide a centralised fulfilment solution.
Rather than sending stock to separate fulfilment networks, you can potentially manage inventory through one warehouse.
This can simplify stock control and help you coordinate dispatches across your business.
The Benefits of Amazon Fulfilled by Merchant
1. Greater Control Over Your Inventory
With FBM, your stock remains in your own warehouse or with your chosen fulfilment partner.
This gives you greater visibility over inventory and allows you to decide how products are stored, organised and processed.
For businesses with specific stock rotation or packaging requirements, this can be a valuable advantage.
2. More Flexibility Over Fulfilment
FBM allows you to choose how orders are fulfilled.
You can manage the process yourself, use a third party fulfilment provider or combine several fulfilment arrangements.
This flexibility can help businesses adapt as order volumes and product ranges change.
3. Potentially Lower Fulfilment Costs for Certain Products
Amazon FBA includes a range of fulfilment and storage fees.
With FBM, you avoid the specific FBA fulfilment charges associated with sending products through Amazon’s fulfilment network.
However, this does not mean FBM is automatically cheaper.
You still need to pay for storage, labour, packaging, courier services and any third party fulfilment charges.
For some products, especially those with low margins or specific handling requirements, FBM may offer a more suitable cost structure.
For others, FBA may be more economical.
The best way to compare the options is to calculate the complete cost of each fulfilment method.
4. More Control Over Customer Experience
When you use FBM, you have more influence over how your products are stored, packed and dispatched.
This may be particularly important for brands that want to maintain consistent packaging standards.
However, customer service responsibilities still need to be managed carefully, and Amazon’s marketplace rules continue to apply.
5. The Ability to Diversify Your Fulfilment Strategy
Relying on one fulfilment method can create operational challenges if your stock levels, order volumes or delivery requirements change.
Using both FBA and FBM can give you additional flexibility.
For example, you could keep your fastest selling products with FBA while using FBM for selected products that are more suitable for direct fulfilment.
What Are the Disadvantages of Amazon FBM?
Although FBM offers flexibility, it also introduces responsibilities that Amazon would otherwise manage through FBA.
You Must Manage Dispatch Performance
Amazon customers expect reliable delivery.
If you consistently dispatch orders late or fail to meet delivery expectations, your account performance could be affected.
You need reliable processes, accurate stock records and dependable delivery partners.
You Are Responsible for Warehouse Operations
Unless you outsource fulfilment, you will need to manage:
Inventory storage
Picking and packing
Packaging supplies
Staff or warehouse labour
Courier collections
Stock checks
Returns
These tasks can become time consuming as your business grows.
You Need to Calculate Your True Costs
Some sellers assume that avoiding FBA fees automatically means they will save money.
However, FBM costs can include warehouse rent, staff time, packaging, software, courier charges and third party fulfilment fees.
You should calculate the total cost per order rather than comparing one Amazon fee against one fulfilment charge.
Prime Eligibility Requires Additional Consideration
Standard FBM offers do not automatically receive the Prime badge.
However, eligible sellers may be able to participate in Seller Fulfilled Prime, subject to Amazon’s programme requirements and performance standards.
This means that FBM sellers should not assume that choosing direct fulfilment automatically excludes them from every Prime related opportunity.
Amazon FBM Fees in the UK for 2026
One of the most important considerations for UK Amazon sellers is the cost of selling and fulfilling products.
The original US based fee examples often quoted in articles about FBM include a Professional selling plan costing $39.99 per month and an Individual selling fee of $0.99 per item.
These are not the standard Amazon UK rates.
For Amazon UK, the principal selling plan charges are as follows.
Amazon UK Selling Plan Fees
Selling plan | Cost in the UK |
Individual selling plan | £0.75 per item sold, excluding VAT |
Professional selling plan | £25 per month, excluding VAT |
Referral fees | Additional percentage based on product category |
FBM fulfilment costs | Paid separately by the seller or fulfilment provider |
Amazon’s Professional plan is charged monthly, regardless of how many items you sell.
The Individual plan charges a fee for each item sold.
Amazon states that sellers who sell fewer than approximately 35 items per month may wish to consider the Individual plan, although the most appropriate option depends on your business requirements.
Amazon UK Referral Fees
Referral fees are charged on products sold through Amazon.
The percentage varies according to the product category.
Amazon’s UK pricing information states that many product categories have referral fees between 8% and 15%, although some categories have different rates.
For example, according to Amazon’s published UK fee schedule:
Product category | Example referral fee structure |
Beauty, Health and Personal Care | 8% for products priced at £10 or less and 15% for products above £10 |
Clothing and Accessories | 5% for products priced at £15 or less, 10% for products above £15 up to £20, and 15% above £20, subject to applicable conditions |
Home Products | 8% for products priced at £20 or less and 15% above £20 |
Grocery and Gourmet | 5% for products priced at £10 or less and 15% above £10 |
Toys and Games | 15% |
Sports and Outdoors | 15% |
Office Products | 15% |
Amazon’s fee structure can change, and some categories have additional conditions or special rates.
Always check the latest official Amazon UK fee schedule before calculating your margins.
Referral fees are calculated according to Amazon’s definition of the total sales price, which may include delivery charges paid by the customer.
Source: Amazon UK selling fees and pricing.
What Other Costs Should FBM Sellers Consider?
In addition to Amazon selling fees, FBM sellers need to account for the actual cost of getting products to customers.
These costs may include:
Warehouse storage
Picking and packing
Packaging materials
Postage and courier charges
Warehouse labour
Returns processing
Inventory management software
Customer service
Product preparation
Insurance and operational overheads
If you work with a third party fulfilment provider, you should ask for a transparent breakdown of the charges.
Some providers charge separately for storage, receiving stock, picking, packing, packaging materials and returns.
A clear pricing structure makes it easier to calculate your actual profit per order.
How to Calculate Whether Amazon FBM Is Profitable
Before switching from FBA to FBM, or adding FBM to your fulfilment strategy, calculate the complete cost of processing an order.
For example, imagine you sell a product on Amazon UK for £30.
Your potential costs might include:
Cost | Example amount |
Product purchase cost | £9.00 |
Amazon referral fee at 15% | £4.50 |
Pick and pack | £2.00 |
Packaging | £0.50 |
Delivery | £3.50 |
Storage allocation | £0.50 |
Total estimated costs before other overheads | £20.00 |
Remaining amount before other business costs | £10.00 |
These figures are illustrative only and do not represent Blue30’s prices or Amazon’s actual charges for a particular product.
You should also consider advertising costs, VAT treatment, returns, software subscriptions and other overheads.
The same calculation should be completed for FBA so you can make a meaningful comparison.
Amazon provides a Revenue Calculator that can help sellers compare estimated costs and revenue for different fulfilment arrangements.
How Blue30 Supports Amazon Sellers With FBM and FBA Prep
Choosing the right fulfilment method is important, but managing the day to day operation is equally essential.
This is where Blue30 can support growing Amazon businesses.
Blue30 provides fulfilment and FBA preparation services for eCommerce brands, helping businesses manage their inventory and deliver products to customers efficiently.
We support Amazon sellers with different fulfilment requirements, whether they are sending stock to Amazon or delivering products directly to consumers.
Amazon FBA Preparation
If you use Fulfilment by Amazon, your products may need to be prepared and labelled correctly before they are sent to Amazon fulfilment centres.
Blue30 supports businesses with FBA preparation services, helping ensure that products are prepared according to the relevant requirements.
Depending on your products and agreed service, preparation may include:
Product labelling
Packaging preparation
Bundling and kitting
Stock handling
Inventory checks
Preparation for delivery to Amazon
Our aim is to help businesses reduce the time and effort involved in preparing stock for Amazon.
Direct to Customer Fulfilment for Amazon FBM
If you use Amazon Fulfilled by Merchant, Blue30 can support your direct to customer fulfilment requirements.
Rather than handling every order yourself, you can outsource the warehouse operation to a specialist fulfilment partner.
Blue30 can help with the operational processes involved in:
Receiving and storing stock
Picking products
Packing customer orders
Preparing shipments
Supporting fulfilment across sales channels
Managing inventory within the agreed fulfilment process
This can be particularly useful for growing brands that want to expand their Amazon sales without taking on additional warehouse space or staff.
Support for Amazon Vendor Businesses
Amazon sellers and Amazon Vendors have different commercial arrangements and operational requirements.
For businesses supplying Amazon through the Vendor model, stock preparation, inventory handling and delivery coordination can be important parts of the supply chain.
Blue30 supports businesses with fulfilment and preparation requirements across Amazon related operations.
If you are a brand supplying Amazon as a Vendor, we can discuss your requirements and explore how our services may support your wider supply chain.
A Flexible Approach to Amazon Fulfilment
Blue30 understands that not every Amazon business uses the same fulfilment model.
Some brands rely primarily on FBA.
Others use FBM to maintain greater control over their customer deliveries.
Many businesses combine Amazon fulfilment with direct to consumer orders through their own websites and other marketplaces.
Our fulfilment services are designed to support businesses that need a reliable operational partner as they grow.
Blue30 is also proud to be recognised among the UK’s recommended Amazon FBA preparation providers through the Amazon Service Provider Network.
If you are looking for support with Amazon FBA preparation, direct to customer fulfilment or wider Amazon related fulfilment requirements, our team can help you explore the available options.
Amazon FBM and FBA: Can You Use Both?
Yes. Many businesses use a combination of FBA and FBM to meet different operational requirements.
For example, consider a UK cosmetics brand selling a range of skincare products.
The business might use FBA for its best selling products, which have predictable sales and benefit from Amazon’s fulfilment network.
At the same time, the brand might use FBM for:
Special product bundles
Slower moving products
Seasonal stock
Products requiring specific packaging
Orders fulfilled through multiple sales channels
This approach can help businesses maintain flexibility while avoiding the need to send every product through the same fulfilment method.
However, stock management becomes increasingly important when you operate across multiple fulfilment channels.
You need to know how much stock is available, where it is stored and which orders each location is responsible for fulfilling.
A reliable inventory management process is essential.
Amazon FBM Best Practices for UK Sellers
If you are considering FBM, the following steps can help you establish a more reliable fulfilment operation.
Set Realistic Handling Times
Avoid promising delivery times that your warehouse or fulfilment partner cannot consistently achieve.
Your handling time should reflect your actual operational capacity.
Choose Reliable Delivery Partners
Work with courier services that can provide suitable delivery options and tracking.
The right choice depends on your product size, delivery destination and customer expectations.
Keep Accurate Inventory Records
Stock discrepancies can result in cancelled orders and poor customer experiences.
Use inventory management systems wherever possible, particularly if you sell through several channels.
Review Your Profit Margins Regularly
Delivery charges, packaging costs and Amazon fees can affect profitability.
Review your costs regularly and consider how changes in order volumes could affect your overall fulfilment expenses.
Plan for Busy Periods
Amazon sales can increase during events such as Prime Day, Black Friday and the Christmas shopping period.
Make sure your warehouse or fulfilment provider has the capacity to handle increased demand.
Have a Clear Returns Process
A consistent returns process can help you deal with customer requests efficiently.
Agree on how returns will be inspected, recorded and processed.
Consider Outsourcing as You Grow
If fulfilment is taking time away from sales, marketing and product development, outsourcing may be worth exploring.
A specialist provider can help you manage the operational workload while you focus on growing your brand.
Frequently Asked Questions About Amazon Fulfilled by Merchant FBM
What does fulfilled by merchant mean on Amazon?
Fulfilled by Merchant means that the Amazon seller is responsible for storing, packing and dispatching products sold through Amazon.
The seller can manage fulfilment personally or outsource the process to a third party logistics provider.
Is Amazon FBM the same as MFN?
Yes. Amazon Fulfilled by Merchant is commonly referred to as the Merchant Fulfilled Network, or MFN.
Both terms describe orders that are fulfilled by the seller rather than through Amazon’s standard FBA service.
Is Amazon FBM cheaper than FBA?
Not necessarily.
FBM can be more cost effective for certain products, but you need to account for storage, labour, packaging, delivery and returns.
FBA may be more economical for other products, particularly where Amazon’s fulfilment network offers operational advantages.
The best option depends on your individual costs and sales volumes.
Can Amazon FBM sellers get Prime?
Standard FBM listings do not automatically qualify for Prime.
However, eligible sellers may be able to participate in Seller Fulfilled Prime, subject to Amazon’s requirements and performance standards.
Can I use Amazon FBM and FBA at the same time?
Yes.
Many Amazon sellers use both fulfilment methods to manage different products, stock levels and delivery requirements.
Using both can provide greater flexibility, provided your inventory and order management processes are properly organised.
Do I need a warehouse to use Amazon FBM?
No.
You can potentially fulfil orders from your own premises, although your operations must meet Amazon’s requirements.
Alternatively, you can work with a third party fulfilment provider that stores and dispatches your products for you.
Can a fulfilment company manage my Amazon FBM orders?
Yes.
Many fulfilment providers support Amazon FBM operations, including inventory storage, picking, packing and dispatch.
Before choosing a provider, check that its systems, delivery processes and service capabilities match your requirements.
What is the difference between Amazon FBM and Seller Fulfilled Prime?
FBM is the general fulfilment method where the seller handles order fulfilment.
Seller Fulfilled Prime is a separate Amazon programme that allows eligible sellers to offer Prime delivery through their own fulfilment operations.
Participation is subject to Amazon’s requirements.
Does Amazon FBM work for small businesses?
Yes.
FBM can be suitable for small businesses that have manageable order volumes, their own storage facilities or a reliable fulfilment partner.
As the business grows, outsourcing fulfilment may help reduce the operational workload.
How much does Amazon FBM cost in the UK?
The cost depends on your Amazon selling plan, product category, storage arrangements, packaging, handling and delivery services.
The Individual Amazon UK selling plan costs 75p per item sold, excluding VAT, while the Professional plan costs £25 per month, excluding VAT.
Referral fees and fulfilment costs are charged separately.
Final Thoughts: Is Amazon FBM Right for Your Business?
Amazon Fulfilled by Merchant FBM gives UK sellers greater control over inventory, packaging and order fulfilment.
It can be particularly useful for businesses with their own warehouse, specialist products or a multi channel sales strategy.
However, FBM also comes with responsibilities. You need reliable stock management, efficient warehouse processes, accurate dispatch information and a dependable returns system.
For many growing brands, the most practical approach is not necessarily choosing between FBA and FBM. Instead, it is about understanding where each fulfilment method fits into your wider business strategy.
Blue30 can support your Amazon operations, whether you need FBA preparation, direct to customer fulfilment for Amazon FBM or assistance with wider Amazon related fulfilment requirements.
As an experienced UK fulfilment partner, Blue30 helps eCommerce brands manage their stock and fulfilment processes so they can spend more time growing their businesses.
Looking for support with Amazon FBA prep or Amazon FBM fulfilment? Contact Blue30 to discuss your requirements and discover how our services can support your next stage of growth.
Comments