Amazon is the world’s largest online marketplace, with millions of sellers competing to capture the attention of shoppers. But here’s the deal: selling on Amazon isn’t just about listing products—it’s about choosing the right fulfillment method. That’s where Amazon FBM (Fulfilled by Merchant) comes in.
In 2025, Amazon FBM has become a powerful alternative to FBA (Fulfilled by Amazon), offering sellers more control over their inventory, shipping, and profit margins. If you’re looking to build an Amazon FBM store, automate processes, or scale a wholesale business, now is the time to explore this model.
But how exactly does Amazon FBM work? How does it compare to FBA? And most importantly, how can you set up a profitable Amazon FBM wholesale store with automation? Let’s dive into everything you need to know!
What is Amazon FBM (Fulfilled by Merchant)?
Amazon FBM is a fulfillment method where sellers handle their own storage, packaging, and shipping instead of relying on Amazon’s warehouses. Unlike FBA, where Amazon takes care of logistics, FBM sellers are responsible for delivering orders directly to customers.
Key Benefits of Amazon FBM:
- More control over inventory and shipping
- Lower fees compared to FBA
- Easier compliance with Amazon’s changing policies
- Ideal for sellers with established logistics or wholesale partnerships
This model is particularly useful for those looking for Amazon FBM wholesale automation services in the USA, as it allows businesses to streamline order fulfillment while maintaining higher profit margins.
Amazon FBM vs. FBA: Which One is Better in 2025?
Many sellers debate whether Amazon FBM or FBA is the best choice. Let’s break down the key differences:
| Feature | Amazon FBM | Amazon FBA |
| Fulfillment | Handled by the seller | Managed by Amazon |
| Storage Costs | No Amazon storage fees | Charged by Amazon |
| Shipping Responsibility | Seller’s responsibility | Amazon handles it |
| Prime Eligibility | Not automatically eligible | Eligible for Prime |
| Profit Margins | Higher for certain products | Lower due to fees |
Why More Sellers Are Choosing Amazon FBM in 2025
- Avoid Rising FBA Fees – Amazon has increased FBA fees, making FBM a cost-effective alternative.
- Greater Flexibility – Sellers can work with USA-based wholesale distributors for Amazon FBM instead of relying on Amazon’s warehouses.
- Better Inventory Control – You can manage stock levels without worrying about Amazon’s storage limitations.
- Improved Branding – FBM allows businesses to ship orders with customized packaging, increasing brand visibility.
If you’re setting up an automated Amazon FBM wholesale store, understanding these differences will help you make the best decision for your business.
Might catch your interest: Amazon FBA vs. Dropshipping in 2025 – Which Is Better?
How to Start an Amazon FBM Wholesale Business in 2025
Starting an Amazon FBM wholesale business requires a strategic approach. From sourcing products to automating fulfillment, here’s how you can get started:
1. Find Reliable Wholesale Suppliers
The first step is finding the best Amazon FBM wholesale suppliers who can provide high-quality products at competitive prices. Look for:
- Suppliers with USA-based warehouses for faster shipping
- Bulk pricing discounts for higher profit margins
- Established businesses with a proven track record
2. Choose Profitable Products
Not all products work well with FBM. Focus on sourcing profitable products for Amazon FBM wholesale, such as:
- Lightweight items with low shipping costs
- Products with consistent demand and low competition
- High-margin items that justify self-fulfillment
Using the best Amazon FBM wholesale tools for automation, you can analyze market trends and identify winning products.
3. Set Up an Amazon FBM Store Properly
To create a successful Amazon FBM store, follow these steps:
- Register as a Seller – Choose a Professional Amazon Seller account for wholesale selling.
- List Your Products – Optimize titles, descriptions, and images for better visibility.
- Set Up Shipping Methods – Offer competitive delivery options to attract more buyers.
- Manage Inventory Efficiently – Use software solutions for Amazon FBM wholesale automation to track stock levels.
4. Automate Your Amazon FBM Store
Manual order fulfillment can be time-consuming. That’s why online Amazon FBM automation is essential for scaling your business. Some tools help with:
- Order Processing – Automatically sync orders with suppliers.
- Inventory Management – Keep track of stock levels in real-time.
- Shipping Optimization – Reduce shipping costs with smart logistics.
By exploring Amazon FBM automation for hands-free selling, you can save time and focus on growing your business.
Scaling an Amazon FBM Wholesale Business Efficiently
Once your wholesale Amazon FBM store USA is up and running, the next step is scaling. Here’s how:
1. Expand Your Product Catalog
- Research high-demand products
- Diversify categories to reach a broader audience
- Work with USA-based wholesale distributors for Amazon FBM to ensure a steady supply
2. Optimize Your Listings for More Sales
- Implement Amazon Store Setup and Optimization strategies
- Use Amazon Listing Optimization to improve rankings
- Write compelling product descriptions with primary and secondary keywords
3. Leverage Amazon PPC Services
Running Amazon PPC ads can drive traffic to your listings. Invest in:
- Sponsored Products – Appear in top search results
- Sponsored Brands – Boost brand awareness
- Sponsored Display Ads – Retarget potential customers
4. Reduce Shipping Costs and Improve Efficiency
To maximize profits, focus on reducing shipping costs for Amazon FBM wholesale orders. Here’s how:
- Use third-party logistics (3PL) providers for discounted rates
- Optimize packaging to reduce dimensional weight fees
- Partner with wholesale Amazon FBM services that offer fulfillment support
5. Streamline Order Fulfillment for Faster Delivery
Fast shipping is a major factor in customer satisfaction. If you’re outsourcing order fulfillment for Amazon FBM wholesale, consider these options:
- Third-Party Fulfillment Centers – Partner with professional Amazon wholesale FBM services to handle storage and shipping.
- Dropshipping Suppliers – Work with wholesalers who can ship directly to customers.
- In-House Fulfillment – If you have the infrastructure, manage packing and shipping yourself for full control.
Using Amazon FBM wholesale automation USA services ensures efficient order processing without manual effort.
Understanding Legal Requirements for an Amazon FBM Wholesale Business
Selling on Amazon comes with regulations that sellers must follow. Before scaling your business, understand the legal requirements for Amazon FBM wholesale business, such as:
- Tax Compliance – Register for a sales tax permit if required in your state.
- Product Compliance – Ensure products meet Amazon’s policies and safety regulations.
- Business Licensing – If you’re running a large-scale wholesale Amazon FBM store USA, you may need a business license.
Staying compliant helps prevent account suspensions and unnecessary legal issues.
A must read article: How to Sell on Amazon Without Inventory
Finding the Best Software Solutions for Amazon FBM Wholesale Automation
Automation is the key to hands-free selling. The right tools can help with:
- Order Management – Automate order processing and tracking.
- Inventory Syncing – Keep stock levels updated in real time.
- Price Optimization – Adjust pricing dynamically to stay competitive.
Some of the best Amazon FBM wholesale tools for automation include:
- Inventory Management Systems – Track stock across multiple suppliers.
- AI-Powered Repricing Tools – Adjust prices automatically to win the Buy Box.
- Shipping Software – Reduce costs with automated label printing and carrier rate comparison.
By leveraging online Amazon FBM automation, sellers can save time while boosting efficiency.
Increasing Sales with Optimized Listings for Amazon FBM Wholesale
Optimized listings drive more traffic and sales. Here’s how to increase sales with optimized listings for Amazon FBM wholesale:
- Keyword Optimization – Use primary and secondary keywords strategically.
- High-Quality Images – Include multiple angles and lifestyle shots.
- Compelling Descriptions – Highlight unique selling points and benefits.
- A+ Content – Add enhanced visuals and branding elements for better conversions.
Investing in Amazon Listing Optimization ensures higher search rankings and better visibility.
Growing an Amazon FBM Wholesale Business with Minimal Effort
Scaling an Amazon FBM store doesn’t have to be overwhelming. Here’s how to grow your business efficiently:
- Use Data Analytics – Track performance and adjust strategies based on insights.
- Expand to Multiple Marketplaces – Sell on international Amazon marketplaces for higher reach.
- Improve Customer Service – Offer fast responses and excellent support to maintain positive ratings.
- Automate Everything Possible – From sourcing to fulfilment, use automation for hands-free growth.
With professional Amazon FBM wholesale services, sellers can expand operations without increasing workload.
Get Expert Help to Scale Your Amazon FBM Business
Running a successful Amazon FBM store requires the right strategies, suppliers, and automation tools. Whether you’re finding USA-based wholesale distributors for Amazon FBM or looking for the best Amazon FBM wholesale tools for automation, having the right support makes all the difference.
At Manage Amazon, we specialize in Amazon Store Setup and Optimization, Amazon Listing Optimization, and Amazon PPC Services to help sellers grow their businesses with minimal effort.
Ready to scale your Amazon FBM wholesale business efficiently? Contact us today and let us handle the hard work while you focus on profits!
