Amazon FBM integration for Business Central

When you sell on Amazon with FBM, your company handles the order from start to finish itself.

That means you have to make sure yourself that the order is retrieved from Amazon, created correctly in Microsoft Dynamics 365 Business Central, passed on to the warehouse or WMS, picked, packed, shipped and updated with tracking back to Amazon.

That gives you more control than Amazon FBA — but also more responsibility.

Because if the order flow does not hold together, problems can quickly arise:

• Amazon orders are processed too late
• Stock status does not match
• Goods are sold even though they are not in stock
• The warehouse gets incorrect or incomplete order data
• Tracking is not sent back to Amazon in time
• Customer service lacks an overview
• Employees spend time on manual data entry

That is why an Amazon FBM integration for Business Central is important for companies that want to sell professionally on Amazon without letting manual processes slow down growth.

With the right integration, Amazon can become a more efficient sales channel where order data, stock status, WMS, shipping and tracking work together in one coherent flow.

What is Amazon FBM?

Amazon FBM stands for Fulfilled by Merchant.

It means that your company handles the fulfilment of orders coming from Amazon itself. When a customer buys an item on Amazon, it is not Amazon that picks, packs and sends the item. It is you, your warehouse, your WMS or your 3PL partner.

With Amazon FBM the company is typically responsible for:

• Stock status
• Order receipt
• Stock reservation
• Picking and packing
• Freight booking
• Label generation
• Shipping
• Tracking updates
• Returns handling
• Customer service related to delivery

FBM can be a strong solution if you already have an efficient warehouse and logistics setup. It can also be relevant if you sell products that are not suited to FBA, or if you want greater control over packaging, delivery, stock placement and the customer experience.

But because you handle the process yourself, system integration becomes far more important.

Why does FBM require a different integration than FBA?

Amazon FBA and Amazon FBM are often mentioned together, but in integration terms they are very different.

With Amazon FBA the company sends goods to Amazon, and Amazon handles fulfilment. Here the integration is mainly about FBA inventory, sales data, fees, returns data and reconciliation. You can read more about that in our guide to Amazon FBA integration for 365 Business Central

With Amazon FBM the company has to react to every order itself. That is why the integration is more about speed, precision and operations.

An FBM integration must in particular ensure that:

• Amazon orders are quickly created in Business Central
• Stock status is correct before the item is sold
• The order is passed on to the warehouse, WMS or 3PL
• Freight and labels are handled efficiently
• Tracking is sent back to Amazon
• Returns are registered correctly
• Customer service can follow the order status

Where FBA is primarily about getting Amazon data into the ERP and finance, FBM is about getting the entire order and delivery flow to run without manual bottlenecks.

That is the most important difference.

Why integrate Amazon FBM with Business Central?

An Amazon FBM integration for Business Central makes it possible to automate the flow from Amazon order to completed delivery.

When an order is placed on Amazon, it should not have to be exported, typed in or forwarded manually. It should be able to be created automatically in Business Central and passed on to the system that handles inventory and shipping.

For many companies, Business Central is the centre for:

• Orders
• Item data
• Inventory
• Customers
• Finance
• Invoicing
• Reporting
• Sales channels

When Amazon is connected to Business Central, Amazon orders can become part of the company’s normal order flow.

That means you can work more efficiently with:

• Automatic order creation
• Stock reservation
• Picking and packing
• Freight integration
• Tracking updates
• Returns handling
• Consolidated reporting
• A better overview across sales channels

That reduces manual work and makes Amazon FBM easier to scale.

Read more: Dynamics 365 Business Central Integration

Typical challenges with manual Amazon FBM handling

Amazon FBM can seem manageable at the start. But when the order volume grows, manual processes quickly become vulnerable.

Orders are processed too late

If Amazon orders are only retrieved manually at certain times, delays can arise right at the beginning of the flow.

That can mean the warehouse starts picking and packing later, and that the shipment risks being delayed.

With FBM, timing is important, because the company itself is responsible for meeting the expected delivery deadlines.

Order data is entered incorrectly

Manual data entry increases the risk of errors.

That can be errors in:

• Item number
• Quantity
• Delivery address
• Shipping method
• Marketplace
• Order status
• Contact details

Even small errors can lead to incorrect deliveries, extra customer service and unnecessary costs.

Stock status does not match

When several sales channels draw on the same stock, stock status has to be up to date.

If Amazon shows goods as available even though they have already been sold via the webshop, a B2B customer portal or an internal sales order, the company can end up overselling.

Overselling is one of the biggest risks with FBM.

The warehouse lacks the right information

If the warehouse does not get all the necessary order data, picking and packing becomes more difficult.

That can especially be a problem if the company has:

• Several stock locations
• Variants
• Bundles
• Particular packaging requirements
• Different shipping methods
• Prioritised orders
• Orders from several marketplaces

The warehouse needs clear and complete data in order to work efficiently.

Tracking is not sent back to Amazon

When the order has been shipped, Amazon has to be notified.

If the tracking number, carrier or shipment confirmation is updated manually, delays and errors can arise.

That can affect both the customer experience and internal administration.

Customer service lacks an overview

When data is spread between Amazon, Business Central, WMS and the shipping solution, it becomes difficult for customer service to answer questions quickly.

Where is the order? Has it been picked? Has it been sent? What is the tracking number? Is the item in stock? Has the order been cancelled?

An integration can bring the flow together, so the relevant employees work from the same data basis.

The most important data flow with Amazon FBM

A good Amazon FBM integration should focus on the operational flow.

It is mainly about these data types:

1. Order data from Amazon to Business Central Orders have to come in quickly and correctly.
2. Stock status from Business Central or WMS to Amazon Amazon has to know what can actually be sold.
3. Order data from Business Central to WMS, warehouse or 3PL The warehouse has to be able to pick and pack without manual processing.
4. Shipping data from the shipping solution to Business Central Tracking and freight information has to be registered correctly.
5. Tracking from Business Central or the shipping solution back to Amazon Amazon and the customer have to be informed that the order has been shipped.
6. Returns data back to Business Central Returns have to affect inventory, finance and customer service correctly.

When these flows are automated, Amazon FBM becomes far more operationally reliable.

Amazon orders straight into Business Central

The first and most central flow is the order transfer from Amazon to Business Central.

When a customer places an order on Amazon, the order should automatically be created in Business Central with the information the company needs. This is a classic example of an ERP integration, where order data is moved automatically from the sales channel to the company’s central business system.

That can for example be:

• The Amazon order number
• Order date
• Marketplace
• Customer or recipient details
• Delivery address
• SKU
• Item number
• Quantity
• Price
• Currency
• Shipping method
• Delivery service
• Order status

Here it is important that the order is not simply “imported”. It has to be translated correctly into the way you work in Business Central.

That can mean the integration has to take into account:

• Which customer account the order is to be posted to
• Which warehouse the order is to be drawn from
• Which dimensions are to be set
• How the Amazon SKU matches the Business Central item number
• How freight and fees are to be handled
• Whether the order should be passed on to the WMS or 3PL

For a company with a few simple products this can be relatively straightforward. For a company with several marketplaces, variants, warehouses and sales channels, it requires a more carefully thought-through integration.

Stock status and the risk of overselling

Stock status is one of the most critical areas with Amazon FBM.

When you handle fulfilment yourself, Amazon should only show goods that can actually be delivered.

That sounds simple, but in practice stock status can be complex.

An item can be:

• Physically in stock
• Reserved for another order
• Available in one warehouse, but not another
• On its way in from a supplier
• Allocated to a B2B customer
• Sold via the webshop, but not yet picked
• Registered in the WMS, but not yet updated in the ERP

That is why it is rarely enough simply to send the “quantity in stock” to Amazon.

Instead the integration should take available stock into account.

That can for example be:

Available stock = physical stock - reserved goods - safety stock

For some companies the calculation also has to take stock locations, sales channels, purchase orders or prioritised customers into account.

Business Central as the inventory master

Many companies use Business Central as the master for stock status. That can be a good solution if Business Central has the most accurate picture of the stock.

But if the company uses a WMS, the WMS can in some cases be closer to the physical warehouse operations.

That is why you should clarify:

• Should the stock status for Amazon come from Business Central?
• Should it come from the WMS?
• Should Business Central and the WMS together calculate available stock?
• Should there be safety stock specifically for Amazon?
• Should all items be shown on Amazon?
• Should some items be hidden if the stock is low?

It is these rules that determine whether the integration actually helps avoid overselling.

Read more: 14 mistakes you should avoid when selling on Amazon

Integration between Business Central, WMS and the warehouse

Amazon FBM is not only about Amazon and Business Central.

In many companies the order has to be passed on to a WMS or a warehouse team that handles the physical process. Here a WMS integration becomes important, because the warehouse has to receive correct order data and send status back without manual follow-up.

A typical flow can be:

Amazon → Business Central → WMS → Warehouse → Freight → Amazon

That means the integration has to ensure that the order flows correctly through several systems.

What should the WMS receive?

If the company uses a WMS, the system typically has to receive:

• Order number
• Item number
• Quantity
• Stock location
• Picking priority
• Delivery address
• Shipping method
• Any packing requirements
• Marketplace information
• The deadline for shipping

When the WMS receives the right data, the warehouse can work more efficiently with picking, packing and shipping.

Where do errors often arise?

Errors typically arise when systems do not agree about:

• Item numbers
• Stock locations
• Order status
• Reservations
• Shipping methods
• Cancellations
• Return status

That is why the integration should not only send data from A to B. It should also take validation, error handling and monitoring into account.

If an order cannot be created correctly, it has to be discovered quickly so it is not delayed.

Shipping labels, shipment and tracking back to Amazon

The freight flow is one of the biggest differences between FBA and FBM.

With FBM, the company itself has to make sure the item is sent — and that Amazon is notified.

That means the integration should often include the shipping platform.

A typical freight flow can look like this:

1. The order comes from Amazon
2. The order is created in Business Central
3. The order is sent to the WMS or warehouse
4. The warehouse picks and packs the item
5. A shipping label is created in the shipping solution
6. A tracking number is generated
7. Tracking is sent back to Business Central
8. Tracking and shipment confirmation are passed on to Amazon

Once the order has been packed, the shipping label and tracking should be able to be handled automatically via a freight integration, so employees do not have to copy tracking numbers between systems.

If tracking is not sent back to Amazon correctly, the customer can lack information, and the company has to spend time on manual follow-up.

Which shipping data should be sent back?

Typically the integration should handle:

• Tracking number
• Carrier
• Shipping date
• Delivery service
• Package ID
• Shipment status
• Any partial deliveries

If the company works with several carriers, the integration becomes even more important.

Amazon FBM with a 3PL partner

Some companies do not handle FBM from their own warehouse, but use an external warehouse or logistics partner.

That can be a good solution, but it places even greater demands on the data flow.

In a 3PL setup the flow can for example be:

Amazon → Business Central → 3PL → Shipping platform → Business Central → Amazon

Here the integration has to ensure that the 3PL partner gets the right order data and sends relevant status updates back.

That can include:

• Order receipt
• Confirmation from the 3PL
• Picking status
• Packing status
• Stock adjustments
• Tracking number
• Cancellations
• Returns

Why is the 3PL flow particularly sensitive?

When an external partner handles the warehouse, the company has less direct control over the daily process.

That is why visible status data is important.

Business Central should be able to show what is happening with the order, even though it is physically handled outside the company.

That makes it easier for customer service, sales and operations to keep up.

If an external warehouse partner handles Amazon orders, a 3PL integration**** becomes central to ensuring that order data, stock status and tracking flow correctly between Amazon, Business Central and the logistics partner.

Returns handling with Amazon FBM

With Amazon FBM the company often has to handle the returns process, or parts of it, itself.

That means returns data has to be linked back to Business Central, so inventory and finance are updated correctly.

A returns process can for example include:

1. The customer creates or requests a return
2. The return is registered
3. The item is received at the warehouse or at the 3PL
4. The item is inspected
5. Stock status is updated
6. A refund or credit note is handled
7. The reason for the return is registered
8. Data is used for reporting

If the returns flow is handled manually, errors can arise in both inventory and customer service.

Example:

An item comes back and is physically put back in the warehouse, but Business Central is not updated. Then the item can be missing from the available stock, even though it can actually be sold again.

Conversely, an item can be registered as available even though it is defective or cannot be resold.

That is why the returns flow should be part of the integration design from the start.

What should you clarify before an Amazon FBM integration?

Before building an Amazon FBM integration for Business Central, you should map the entire order flow.

Here are the most important questions.

1. Where should Amazon orders land first?

Should orders be created directly in Business Central? Should they first go through an integration platform? Should some orders go on to the WMS or 3PL straight away?

2. Who owns the stock status?

Is it Business Central, the WMS or a 3PL partner that has the most accurate inventory picture?

That is important to define before stock status is sent to Amazon.

3. How is available stock calculated?

Should Amazon have the entire stock? Should safety stock be deducted? Should certain items be reserved for other channels?

This calculation is central to avoiding overselling.

4. How do SKUs match between Amazon and Business Central?

Amazon SKUs have to match item numbers in Business Central.

If they do not match directly, the integration has to have a clear mapping.

5. How are the WMS and the warehouse handled?

Should Business Central pass the order on to the WMS? Which fields does the WMS require? How does status come back?

6. How are shipping labels created?

Should shipping labels be created in the WMS, Business Central, a shipping platform or at the 3PL?

7. How is tracking sent back to Amazon?

The tracking flow has to be clear, so Amazon and the customer get the correct information when the order has been shipped.

8. How are cancellations handled?

If an Amazon order is cancelled after it has been sent to the warehouse, the integration has to be able to handle that.

Otherwise the company risks shipping an order that is no longer supposed to be sent.

9. How are partial deliveries handled?

If an order cannot be delivered in one go, it has to be clarified how partial deliveries are handled in Business Central, the WMS, the shipping solution and Amazon.

10. How are errors monitored?

An integration should have logging and error handling, so errors are not discovered too late.

If an order fails in the transfer, someone has to be able to react quickly.

A standard connector or a flexible integration?

There are standard connectors that can link Amazon and Business Central.

For some companies that can be sufficient. But with Amazon FBM the need depends greatly on the inventory and freight flow.

A standard connector can be enough if:

• You have few orders
• You have a simple inventory
• You use one marketplace
• SKUs match directly
• Orders only need to come into Business Central
• You do not have complex requirements for the WMS or freight

A flexible integration is often relevant if you use a WMS, 3PL, several sales channels or complex inventory rules. Here an integration platform can provide better opportunities to control the data flow, error handling and adaptations across systems.

• You use a WMS
• You use a 3PL
• You have several sales channels
• You have several warehouses
• You sell on several Amazon marketplaces
• You have complex SKUs
• You have bundles or variants
• You have to manage safety stock
• You have particular rules for order prioritisation
• You want to automate freight and tracking
• You need monitoring and error handling

The most important thing is not whether the solution is standard or custom-built.

The most important thing is that the integration fits your order flow.

How Connectify can help with Amazon FBM integration for Business Central

At Connectify we help companies connect Amazon, Business Central and the rest of their system landscape. If you want the overall picture, you can start with our page about Amazon integration for Business Central.

An Amazon FBM integration for Business Central is not only about retrieving orders. It has to support the entire operational flow from order to delivery.

We can help with integration between:

• Amazon Seller Central
• Microsoft Dynamics 365 Business Central
• WMS
• Shipping platform
• 3PL partner
• Webshop
• B2B customer portal
• PIM
• BI or reporting solutions

Typical integration flows can be:

• Amazon orders to Business Central
• Stock status from Business Central or the WMS to Amazon
• Order data from Business Central to the WMS or 3PL
• Stock reservation across sales channels
• Freight and tracking data back to Amazon
• Returns data to Business Central
• SKU mapping between Amazon and the ERP
• Error handling and monitoring of the order flow

Our approach starts with your processes.

How do Amazon orders come in today? Where does manual work arise? Which system manages the inventory? How are shipping labels created? How does tracking get back to Amazon? How are returns and cancellations handled?

Once that is clarified, the integration can be designed so it supports your actual operations.

Example: From manual Amazon FBM to an automated order flow

Imagine a company that sells via Amazon, its own webshop and a B2B customer portal.

All channels draw on the same stock.

Before the integration, the process looks like this:

• Amazon orders are retrieved manually from Seller Central
• Order data is typed into Business Central
• The warehouse is notified by email or an export file
• Stock status is not updated quickly enough
• Shipping labels are created manually
• Tracking is copied back to Amazon
• Customer service has to check several systems for the order status

After an Amazon FBM integration, the flow can look like this:

• Amazon orders are retrieved automatically
• Orders are created correctly in Business Central
• Available stock is updated to Amazon
• The order is passed on to the WMS
• The warehouse picks and packs
• The shipping label is created automatically
• Tracking is sent back to Amazon
• Customer service can follow the order status in the systems
• Errors in the order flow become visible faster

The result is a more efficient, stable and scalable Amazon flow.

Amazon FBM as part of an overall multichannel strategy

Amazon FBM should not be seen as an isolated sales channel.

For many companies, Amazon is one channel among several. If you also sell via your own webshop, the Amazon flow should be thought through together with your webshop integration, so that order data and stock status hold together across channels.

• Your own webshop
• A B2B customer portal
• Sales representatives
• Distributors
• Retailers
• Other marketplaces

If all channels draw on the same stock, integration becomes crucial.

Business Central can act as the centre for order data, inventory and finance. But if Amazon, the webshop, the WMS and the shipping solution are not integrated, the company ends up with parallel processes and unreliable data.

A good Amazon FBM integration should therefore be thought of as part of an overall multichannel architecture.

It is not only about Amazon.

It is about getting sales channels, inventory and delivery to work together.

The most important takeaways about Amazon FBM and Business Central

Amazon FBM is not just another sales channel to be connected to Business Central. It is an operational flow where every order has to move quickly and correctly from Amazon to the warehouse — and on out to the customer.

The most important thing is therefore not only whether Amazon and Business Central can exchange data. What is decisive is whether the whole process holds together:

• Does the order come into Business Central quickly enough?
• Is the stock status correct before the item is sold?
• Does the warehouse or the WMS know exactly what is to be picked and shipped?
• Are the shipping label and tracking handled without manual work?
• Is Amazon notified when the order has been shipped?
• Can customer service keep up with the order status?

This is where Amazon FBM clearly differs from FBA. With FBA you hand over a large part of the fulfilment process to Amazon. With FBM you keep the responsibility yourself — and that is why the integration has to support daily operations far more precisely.

For companies that sell via Amazon, their own webshop, a B2B customer portal or other channels at the same time, it becomes even more important. If all channels draw on the same stock, inventory data, reservations and order status have to be up to date across the systems. Otherwise you risk overselling, delayed deliveries and unnecessary manual follow-up.

A good Amazon FBM integration for Business Central is therefore about more than automating order imports. It has to create a stable flow between Amazon, Business Central, the WMS, the shipping solution and any 3PL partners.

When that works, Amazon FBM becomes easier to scale. Not because the complexity disappears, but because the systems start to take on a greater part of the work.