Amazon FBM Shipping Guide: Fulfillment by Merchant Best Practices

Fulfillment by Merchant (FBM) gives you control but requires meeting Amazon's strict shipping standards. Here's how to excel.

FBM vs. FBA

Key Differences

Aspect	FBM	FBA
Storage	You manage	Amazon warehouse
Shipping	You handle	Amazon handles
Returns	You process	Amazon handles
Prime eligible	With SFP	Automatic
Fees	Your shipping costs	FBA fees
Control	Full control	Limited control

When to Use FBM

Heavy or oversized items
Slow-moving inventory
Customized products
Higher margins needed
Multi-channel selling

Amazon Seller Metrics

Critical Metrics

Metric	Target	Impact
On-Time Delivery (OTD)	>97%	Account health
Valid Tracking Rate	>95%	Account health
Late Shipment Rate	<4%	Account health
Pre-Fulfillment Cancel	<2.5%	Account health

Monitoring Metrics

Check daily in Seller Central:

Account Health Dashboard
Performance notifications
Shipment reports
Customer feedback

Shipping Requirements

Handling Time

Setting	Definition
0 days	Ship same day
1 day	Ship next business day
2 days	Ship within 2 business days

Set realistic handling time you can consistently meet.

Tracking Requirements

Must provide:

Valid tracking number
Carrier confirmation scans
Delivery confirmation
Upload before ship deadline

Carrier Selection

Approved Carriers

Amazon-recognized carriers:

USPS (all services)
UPS (all services)
FedEx (all services)
DHL (limited)
Regional carriers (some)

Carrier by Product Type

Product Type	Recommended
Small, light	USPS Ground Advantage
Medium	USPS Priority or UPS Ground
Heavy	UPS Ground or FedEx Ground
Expedited	USPS Priority or UPS

Cost Optimization

Rate Comparison

Carrier	1 lb Package	5 lb Package
USPS Ground Advantage	$4.50	$7.50
UPS Ground	$8.00	$12.00
FedEx Ground	$8.50	$12.50

atoship Amazon Savings

With atoship discounts:

Service	Retail	atoship	Savings
USPS Ground Advantage	$5.00	$4.25	15%
UPS Ground	$9.00	$6.48	28%
FedEx Ground	$9.50	$6.84	28%

Buy Shipping Integration

Amazon Buy Shipping

Benefits:

Discounted rates
Automatic tracking
Protected from late delivery claims
Integrated workflow

Third-Party Alternative

Using atoship:

Import Amazon orders

Compare all carrier rates

Generate labels

Auto-upload tracking to Amazon

Workflow for FBM

Daily Process

Morning:
Check new orders
Download order report
Pick items from inventory
Pack orders
Afternoon:
Generate shipping labels
Confirm shipments in Seller Central
Drop off or schedule pickup
Evening:
Verify tracking uploaded
Check for issues
Prepare for next day

Batch Processing

For efficiency:

Process similar orders together
Use batch label printing
Sort by carrier for drop-off
Group by shipping speed

Seller Fulfilled Prime (SFP)

Requirements

Requirement	Standard
On-Time Delivery	>93.5%
Valid Tracking	>99%
Cancellation Rate	<0.5%
Trial period	30 days

Benefits

Prime badge on listings
Higher conversion rates
More visibility
Premium customers

Challenges

Strict requirements
Must offer 1-2 day shipping
Saturday delivery sometimes
Higher shipping costs

Returns Handling

Amazon Return Policy

Buyer-friendly returns
Prepaid return labels (often)
Quick refunds expected
Grade return condition

Return Processing

Receive return notification

Await package

Inspect condition

Process refund

Restock or dispose

Packaging Standards

Amazon Requirements

Requirement	Details
Protection	Adequate for transit
Box size	Not excessively oversized
Labeling	Clear shipping label
Branding	Your branding allowed

Cost-Effective Packaging

Package Type	Use For	Cost
Poly mailers	Soft goods	$0.15-0.30
Bubble mailers	Small fragile	$0.25-0.50
Boxes	Most items	$0.50-2.00

Multi-Channel Fulfillment

Combining Channels

Fulfill orders from:

Amazon
Your website
Other marketplaces
Wholesale

Inventory Management

System	Benefit
Unified inventory	No overselling
Order routing	Efficient fulfillment
Single interface	Simplified operations

Common Mistakes

Mistake 1: Missing Ship Deadline

Impact: Late shipment rate increases Solution: Ship before deadline, use reliable carriers

Mistake 2: Invalid Tracking

Impact: Valid tracking rate drops Solution: Use Amazon-recognized carriers

Mistake 3: Oversized Packaging

Impact: Higher shipping costs Solution: Right-size boxes, consider DIM weight

Mistake 4: Poor Communication

Impact: Negative feedback Solution: Proactive updates, quick responses

atoship Amazon Integration

Optimize FBM with atoship:

Order import: Sync Amazon orders

Rate shopping: All carriers, best rates

Buy Shipping rates: Access Amazon discounts

Tracking upload: Automatic to Amazon

Batch processing: Handle volume

Conclusion

Amazon FBM success requires meeting strict metrics, optimizing costs, and efficient operations. Use atoship to access discounted shipping rates, automate tracking uploads, and maintain the performance that keeps your seller account healthy.