Amazon FBM (Fulfilled by Merchant) means you, not Amazon, store and ship the orders your customers place on Amazon.ca. Many Canadian sellers like the control and lower Amazon fees of FBM but do not want to pack boxes themselves. That is where a 3PL for FBM in Canada comes in: the 3PL holds your stock and ships each Amazon order for you, on time and with tracking. This guide explains how it works and when it makes sense.
FBM vs FBA at a glance
| FBM with a 3PL | FBA | |
|---|---|---|
| Who stores the stock | Your 3PL | Amazon fulfillment centres |
| Who ships the orders | Your 3PL, using your chosen carriers | Amazon |
| Amazon fees | No FBA fulfillment or storage fees | FBA fulfillment and monthly storage fees |
| Prime badge | Not by default | Yes |
| Other sales channels | Same stock ships Shopify, Walmart and B2B orders | Stock is tied to Amazon |
| Best for | Large, heavy, slow-moving or multi-channel items | Fast-moving, standard-size items |
For a deeper comparison, read Amazon FBA vs FBM in Canada.
How FBM fulfillment with a 3PL works
- 1. Send your inventory: ship your stock to the 3PL warehouse, where it is received, counted and stored by SKU.
- 2. Connect your orders: Amazon orders flow to the 3PL through an integration with Seller Central or your order management software.
- 3. Pick, pack and ship: the 3PL picks each order, packs it and ships it before the cut-off with a tracked service.
- 4. Tracking goes back to Amazon: the tracking number is uploaded so the order is confirmed as shipped on time.
- 5. Returns: returned items come back to the 3PL to be inspected and restocked.
Amazon FBM performance targets your 3PL must hit
With FBM, Amazon holds you responsible for delivery performance, even when a 3PL does the shipping. Your 3PL needs to keep you within Amazon’s targets:
| Metric | Amazon target |
|---|---|
| Late shipment rate | Under 4% |
| Valid tracking rate | Above 95% |
| Pre-fulfillment cancel rate | Under 2.5% |
| Order defect rate | Under 1% |
That is why clear daily cut-off times and reliable carrier pickups matter so much for FBM sellers.
When FBM with a 3PL makes sense
- Large or heavy products where FBA fees and storage costs are high
- Slow-moving SKUs that would pay long-term storage fees at Amazon
- Multi-channel sellers who want one stock pool for Amazon, Shopify, Walmart and wholesale
- Seasonal sellers who need more control over stock during peak season
- FBA backup: keeping FBM stock ready when FBA inventory limits or delays hit
Many sellers run both: fast movers in FBA and everything else as FBM from their 3PL. Newsom 3PL can prep and ship your FBA shipments and fulfill your FBM orders from the same warehouse. See also Amazon 3PL in Toronto.
FBM fulfillment with Newsom 3PL
Newsom 3PL fulfills Amazon FBM orders from our warehouse in Mississauga near Toronto Pearson, close to customers across Ontario and with daily carrier pickups for shipping across Canada and to the US. We also handle FBA prep, Walmart WFS prep and e-commerce fulfillment for your other channels. Pricing is based on your volume, so we send a rate card that fits your business. Request a quote to get started.
Frequently asked questions
Can a 3PL fulfill Amazon FBM orders in Canada?
Yes. A 3PL stores your inventory, receives your Amazon.ca orders through an integration, ships them with tracking and uploads the tracking to Amazon.
Is FBM cheaper than FBA?
It depends on your product. FBM avoids FBA fulfillment and storage fees, which often makes it cheaper for large, heavy or slow-moving items. For small, fast-moving items, FBA can be more cost-effective.
Can I use FBA and FBM at the same time?
Yes. Many sellers keep their best sellers in FBA and fulfill the rest through FBM with a 3PL. The 3PL can also send replenishment shipments to FBA.
Do I lose the Prime badge with FBM?
Standard FBM offers do not carry the Prime badge. Fast, reliable shipping and good reviews still help FBM listings win sales.