Introduction
Every Amazon seller faces the same question: Should I use FBA or FBM?
Fulfillment by Amazon (FBA) offers convenience, scale, and Prime eligibility — but at a cost.
Fulfillment by Merchant (FBM) gives you control, margins, and flexibility — but demands more effort and infrastructure.
Understanding the true differences (beyond what Amazon tells you) helps you build a strategy that maximizes profit, not just sales.
1️⃣ What Is FBA?
Fulfillment by Amazon means Amazon stores, picks, packs, and ships your products.
You send inventory to an Amazon fulfillment center, and they handle the rest — including returns and customer service.
FBA Advantages:
- Prime badge = higher conversion rates.
- Automated logistics and faster shipping.
- Amazon handles returns, refunds, and support.
FBA Disadvantages:
- Storage, handling, and fulfillment fees can eat into margins.
- Limited control over packaging, branding, and customer data.
- Inventory limits and restock restrictions can slow growth.
2️⃣ What Is FBM?
Fulfillment by Merchant means you ship directly to customers (or use a 3PL).
You control the logistics, packaging, and shipping speed.
FBM Advantages:
- Lower fees and better margin control.
- Full flexibility over branding and packaging.
- Ideal for oversized or slow-moving products.
FBM Disadvantages:
- No Prime badge (unless using Seller Fulfilled Prime).
- Slower delivery times can hurt conversion rates.
- You handle returns and support yourself.
3️⃣ The REAL Difference: Control vs. Convenience
The true divide isn’t just cost — it’s control.
| Factor | FBA | FBM |
|---|---|---|
| Control | Low | High |
| Convenience | High | Moderate |
| Margins | Lower | Higher |
| Scalability | Easier | Manual |
| Branding | Limited | Full |
| Customer Data | Restricted | Accessible |
| Prime Eligibility | Automatic | Optional (via SFP) |
FBA wins for automation and reach.
FBM wins for flexibility and profitability.
The best sellers? They combine both.
4️⃣ The Hybrid Model: The Best of Both Worlds
Most 7-figure brands run hybrid operations — using FBA for fast-moving SKUs and FBM for niche or bulkier items.
Example:
A home goods brand sends its top-selling kitchenware to FBA but fulfills its oversized furniture via FBM to avoid storage penalties.
This approach balances speed, control, and cost efficiency.
5️⃣ Key Metrics to Decide
When choosing between FBA and FBM, focus on:
- Contribution Margin (after all fees and shipping)
- Sales Velocity (FBA boosts conversions)
- Storage Fees vs. Holding Costs
- Customer Expectations (Prime vs. standard shipping)
Run side-by-side SKU analyses to identify which method yields higher profit per order.
6️⃣ 30/60/90 Day Plan
| Timeframe | Focus | Action |
|---|---|---|
| Days 1–30 | Analyze Fees | Audit top SKUs to compare FBA vs. FBM cost per sale. |
| Days 31–60 | Test Hybrid Model | Move 20% of slow sellers to FBM or a 3PL. |
| Days 61–90 | Optimize | Scale the more profitable model and refine shipping workflows. |
Final Thoughts
There’s no universal winner in the FBA vs. FBM debate — only the one that fits your business model.
FBA gives scale and exposure.
FBM gives control and margin.
Together, they give you balance.
Stop choosing sides — start building strategy.
