September 8, 2025
When selling on Amazon, one of the most important decisions sellers face is choosing between FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant). Both models allow sellers to reach millions of customers worldwide, but they differ in how products are stored, packed, and shipped.
1. Fulfillment by Amazon (FBA)
How it works: Sellers send inventory to Amazon’s fulfillment centers. Amazon takes care of storage, packaging, shipping, and customer service.
Advantages:
Prime eligibility, which increases visibility and sales potential.
Amazon handles logistics and returns, saving sellers time.
Faster shipping options enhance customer satisfaction.
Considerations:
Higher fees due to storage and fulfillment costs.
Less control over inventory handling.
2. Fulfillment by Merchant (FBM)
How it works: Sellers store products themselves and handle shipping directly to customers.
Advantages:
Lower costs if you already have storage and shipping solutions.
Greater control over inventory, packaging, and order handling.
More flexibility in managing niche or low-volume products.
Considerations:
No automatic Prime badge (unless using Seller Fulfilled Prime).
Responsibility for shipping speed, returns, and customer service.
3. Which One Should You Choose?
FBA is ideal if you want to scale quickly, target Prime customers, and let Amazon handle operations.
FBM works best if you have an efficient logistics setup, want to save costs, or sell unique products with lower turnover.
In short: FBA offers convenience and scalability, while FBM provides control and cost efficiency. Many successful sellers even combine both strategies to maximize results.
