If you are fulfilling orders yourself through Amazon FBM (Fulfilled by Merchant), controlling your shipping settings is essential for profitability and customer satisfaction. One of the most important tools you can use is a custom shipping template on Amazon FBM. It allows you to set delivery speeds, shipping regions, and rates based on your business needs.
I have built and cleaned up shipping templates for sellers who came to me with the default Amazon template still running years into their business, quietly costing them money on every order. In this blog, I will show you exactly how to create and manage a custom shipping template step by step. Whether you want to offer free shipping, adjust delivery times, or exclude certain regions, this guide will help you optimise your FBM shipping strategy for better control and customer experience.
Why You Need a Custom Shipping Template
Many sellers use the default template. This may not fit your business. You may sell in more zones. You may ship faster. You may charge different rates. A custom template helps you match your exact needs. A custom template gives you flexibility. You can change delivery speeds. You can offer one day delivery. Or you can set standard shipping. You choose the best method. Customers get more options. They will trust you more.
Templates also help you manage costs. You can charge shipping fees. You can set free shipping limits. You can avoid extra losses. This helps your profits grow. You also get better control over delivery times. In my experience, sellers who never touch their shipping template are almost always leaving money on the table somewhere, whether that is undercharging on heavy items or overpromising on speed they cannot actually deliver.
What Does MFN Mean, and How Does It Relate to FBM Shipping Templates
MFN stands for Merchant Fulfilled Network. It is Amazon’s internal term for the exact same setup most sellers know as FBM. You will see MFN used inside Seller Central reports, in Amazon’s API documentation, and occasionally in support tickets, while FBM is the term Amazon uses in most seller-facing menus and guides.
I bring this up because sellers sometimes think MFN is a separate programme from FBM or that it requires different settings. It does not. If you fulfil orders yourself rather than using FBA, you are operating under MFN, and your custom shipping template applies the same way regardless of which term shows up on a given screen. Knowing this distinction has saved a few of my clients unnecessary confusion when a report or API response referenced MFN and they assumed something had changed with their account setup.
Step-by-Step Guide to Create a Custom Shipping Template
Creating a template is easy. You do it from your Amazon Seller Central. Follow these steps to build your custom shipping plan:
Step 1: Log In to Seller Central Use your seller credentials. Go to the “Settings” menu. Then choose “Shipping Settings.
Step 2: Create a New Template Click “Create New Shipping Template”. Give it a name. Pick “Custom” as the type.
Step 3: Set Shipping Regions Choose where you want to ship. Select regions like the UK Mainland or Northern Ireland.
Step 4: Choose Shipping Speeds Set delivery options. You can add Standard, Expedited, or Next Day. Pick the ones you offer.
Step 5: Set Fees and Delivery Times Add your prices. Enter handling times. Set delivery estimates. Be honest and clear.
Step 6: Assign Products Link products to the template. Go to your inventory. Choose the items and apply the template.
Save the template once done. Your shipping settings will now be live. I always recommend running one test order through a new template before assigning it to your full catalogue, since a small setup mistake here can affect every order that follows.
Choosing the Right Shipping Regions
Shipping regions help you reach the right customers. You need to pick them carefully. Each area may have different delivery costs. Choose only regions you can ship to easily. Start with your local region. If you are in London, pick London zones. Then add nearby regions. Later, you can add remote areas. Avoid picking all zones if you cannot serve them fast.
Use simple names for each region. Make them easy to understand. Customers need to see clear delivery options. This builds trust and improves your ratings.
Setting Delivery Speeds That Work for You
Delivery speed matters a lot. Customers want fast service. Your template must match your real abilities. Do not promise what you cannot deliver. Start with standard shipping. This works for most sellers. Offer 3 to 5 working days. If you can deliver quicker, add Expedited Shipping. This gives more choices to your buyers.
If you can ship the same day or next day, add that too. Some buyers pay more for speed. This can increase your profits. Just make sure your team can handle it. Only add speeds you can support daily. I have seen sellers add next day shipping because a competitor offered it, without checking their own fulfilment capacity first, and it almost always backfires in late shipment ratings within a month.
How to Set Shipping Rates in Your Template
Shipping rates control your costs. They also affect your sales. You can offer free shipping. Or you can charge by item, weight, or price.
Ways to set shipping rates:
- Per item: You charge a flat rate for each product sold.
- Per weight: You charge based on the total weight of the order.
- By order value: You offer free shipping after a certain spend.
- Flat rate: One simple price for all orders in a zone.
Start small. Offer a flat rate. Then test other methods. See what brings more orders. Track your profits. If you lose money on shipping, change the rates. Templates allow you to edit anytime.
Assigning Products to Your Custom Template
Once your template is ready, link products to it. This tells Amazon how to handle shipping for those items. You can apply one template to many products. Go to your inventory. Choose the items you want. Click “Edit”. Then assign your custom shipping template. Save your changes. Now these products follow your new shipping rules.
You can also use bulk tools. Amazon lets you upload a file with many products. This saves time if you sell a lot of items. Keep your templates updated. Remove items if you stop selling them. Make sure each product has the right template. Wrong settings can delay orders. They may also confuse buyers. Stay organised to avoid issues.
Updating or Editing Existing Shipping Templates
Markets change. So do your delivery options. You may need to update your template. Amazon makes this easy. Go to Seller Central. Open “Shipping Settings”. Find your template. Click “Edit”. You can change speeds, prices, and regions. You can also rename the template.
After editing, click save. Your changes go live at once. Check your listings. Make sure products use the right version. Also update delivery times if you change carriers. Review your templates every month. This keeps your shipping plan fresh. You avoid errors. You also stay competitive. Shoppers like fast and clear delivery terms.
Common Mistakes to Avoid with Shipping Templates
Many new sellers make the same mistakes. These can hurt your ratings. They can also cause returns or delays. Avoid these common issues:
- Overpromising delivery speeds. Do not say ‘next day’ if you cannot do it. Late orders lead to bad reviews.
- Undercharging for shipping. Know your real costs. Include packaging, postage, and labour.
- Using one template for all products. Different items need different plans. Heavy items cost more. Use separate templates.
Double-check your settings. Do test orders. Fix problems fast. Always give honest delivery times.
Best Practices for Managing Shipping Templates
Managing your templates well saves you time. It also helps your brand grow. Here are tips to stay on track:
- Review templates monthly. Update delivery times and rates. Remove old zones or add new ones.
- Match templates to products. Use correct templates for fragile or heavy items. Use special options if needed.
- Monitor feedback. Customers will tell you if something goes wrong. Read reviews and fix problems fast.
- Use bulk tools. Edit many items at once using bulk files. This saves time.
- Test new ideas. Try new shipping offers. Offer free delivery for orders over a set value. See what works.
Good management makes your shipping smooth. It builds trust. It also helps you scale faster.
Case Studies: Shipping Templates in Practice
Case Study 1: Fixing a Costly Default Template
I worked with a seller shipping heavier home goods who had never left Amazon’s default shipping template. They were charging the same flat rate for a lightweight accessory and a ten pound item, which meant they were losing money on every heavy order once real courier costs were factored in. I built separate templates split by weight tier, with accurate per-weight pricing for the heavier catalogue. Within the first month, their shipping-related losses on heavy items disappeared, and their overall margin on that product line improved without raising prices on their lighter, more price-sensitive items.
Case Study 2: Solving a Late Delivery Rating Problem
Another client was offering next day delivery across their entire catalogue to match a competitor, but their actual fulfilment process could not consistently support it, especially on weekends. Their late shipment rate had crept up enough to risk an account health warning. I rebuilt their template to offer Next Day only on products with same day dispatch capability and Standard shipping on everything else, with honest delivery windows. Their late shipment rate dropped back under Amazon’s threshold within a few weeks, and their account health flag cleared without them losing the Next Day option entirely on their fastest moving products.
Frequently Asked Questions About Amazon Shipping Templates
Log into Seller Central, go to Settings, then Shipping Settings, and select Create New Shipping Template. Choose Custom as the template type, set your regions, delivery speeds, and rates, then assign it to your products. I recommend testing a template on a small group of products before rolling it out across your full catalogue.
MFN stands for Merchant Fulfilled Network. It refers to the same setup as FBM, where you fulfil orders yourself instead of using Fulfilment by Amazon. You may see MFN used in reports or API documentation even though FBM is the more common term in Seller Central’s main menus.
Amazon allows multiple shipping templates per account, and I generally recommend at least two or three for most sellers, split by product weight or shipping speed, rather than forcing every product into one template. There is no practical reason to limit yourself to a single template if your catalogue has meaningfully different shipping needs.
Yes. You assign a shipping template at the product level, so you can have one template for lightweight items, another for heavy or oversized items, and another for products where you offer expedited options. This is one of the most common fixes I make when auditing a new client’s account.
There is no practical difference. FBM and MFN both describe merchant-fulfilled orders, meaning you handle storage and shipping yourself rather than Amazon. FBM is Amazon’s seller facing term, while MFN is used more in technical and reporting contexts.
Conclusion
Custom templates help you stand out. You stop using default settings. You start creating your own rules. That is how you win on Amazon FBM. To learn more or get help with your setup, visit us at Amazon Consultant. We are here to help you grow.
