Amazon FBA vs FBM :
📌 Introduction
When selling on Amazon, one of the biggest decisions you’ll make is how to fulfill customer orders. Amazon offers two main fulfillment models:
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FBA (Fulfillment by Amazon) – Amazon stores, packs, and ships products for you.
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FBM (Fulfillment by Merchant) – You, the seller, handle storage, packing, shipping, and customer service.
Both models have unique benefits and drawbacks. In our Amazon FBA Business Guide we explained why many sellers love FBA, while our Amazon FBM Business Guide showed how FBM gives sellers more control.
But which one is better in 2025? Let’s dive in.
What is Amazon FBA?
Fulfillment by Amazon (FBA) means:
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You send your products to Amazon’s warehouse.
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Amazon stores them.
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Seller’s role: Source products + manage inventory levels.
👉 Full details here: Amazon FBA Business Guide.
What is Amazon FBM?
Fulfillment by Merchant (FBM) means:
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You list products on Amazon.
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You store, pack, ship, and handle customer service.
Seller’s role: Full control of logistics, packaging, and customer service.
👉 Learn more here: Amazon FBM Business Guide.
Amazon FBA vs FBM: Key Differences
| Feature | FBA (Fulfillment by Amazon) | FBM (Fulfillment by Merchant) |
|---|---|---|
| Storage | Amazon warehouses | Your own space or 3PL |
| Shipping | Amazon handles | You handle |
| Customer Service | Amazon handles | You handle |
| Prime Eligibility | Automatic | Only if enrolled in Seller Fulfilled Prime (SFP) |
| Fees | Higher (storage + fulfillment) | Lower (mainly referral + shipping) |
| Scalability | Easy to scale | Harder to scale without logistics team |
| Best For | Beginners, fast movers | Experienced sellers, niche/large items |
Pros & Cons of Amazon FBA
✅ Pros
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Automatic Prime badge (higher sales).
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Amazon handles logistics & returns.
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Easy to scale fast.
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Better for small, lightweight, fast-moving products.
❌ Cons
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Higher fees.
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Less control over branding & packaging.
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Storage limits during peak seasons.
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Risk of long-term storage fees.
Pros & Cons of Amazon FBM
✅ Pros
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Lower costs (no FBA fees).
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Full control over packaging, branding, and shipping.
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Better margins on bulky/heavy products.
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Flexibility to use hybrid selling.
❌ Cons
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No automatic Prime (unless SFP approved).
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You must manage customer service.
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Harder to scale if order volume increases.
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Slower shipping may affect Buy Box win rate.
Amazon FBA vs FBM: Costs Breakdown
| Cost Type | FBA | FBM |
|---|---|---|
| Referral Fee | 8–15% | 8–15% |
| Storage Fees | Charged monthly by Amazon | Your own storage cost |
| Fulfillment Fees | Per unit (varies by size/weight) | Your shipping cost |
| Returns Handling | Free (Amazon handles) | You handle costs |
| Subscription Fee | $39.99/month (Pro Plan) | $39.99/month (Pro Plan) |
👉 If your product is small, light, and fast-moving, FBA fees are usually worth it.
👉 If your product is bulky, custom, or niche, FBM often has better margins.
Which Model Works Best in 2025?
✅ Best for Beginners: Amazon FBA
If you’re new to selling online, FBA is easier because:
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You don’t need storage or shipping logistics.
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You can focus on finding products & marketing.
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Prime eligibility boosts sales from day one.
✅ Best for Experienced Sellers: Amazon FBM
If you have logistics experience or unique products, FBM can be better:
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Control shipping speed & branding.
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Lower costs for heavy/bulky products.
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Avoid high FBA storage fees.
Seller Fulfilled Prime (SFP): The FBM Upgrade
FBM sellers can still offer Prime shipping if they qualify for Seller Fulfilled Prime (SFP).
Requirements:
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Ship >99% of orders on time.
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2-day shipping for most orders.
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Low cancellation rates.
👉 This makes FBM nearly as competitive as FBA, but you must manage logistics flawlessly.
Case Study Examples
Example 1: A Beginner Selling Phone Accessories
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Lightweight, small, and fast-moving.
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Best choice: FBA (low shipping costs + Prime).
Example 2: A Seller with Handmade Wooden Furniture
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Bulky, heavy, and unique.
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Best choice: FBM (FBA storage fees too high).
Example 3: A Growing Brand with Multiple Products
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Small electronics (fast-moving) + large gym equipment (bulky).
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Best choice: Hybrid (FBA + FBM).
FAQs
1. Which is cheaper: FBA or FBM?
Depends on the product. Small/light → FBA is often cheaper. Large/bulky → FBM usually saves money.
2. Do FBM sellers get fewer sales?
Not always—but FBA’s Prime badge does give higher visibility.
3. Can I switch from FBA to FBM later?
Yes, you can change fulfillment methods anytime in Seller Central.
4. Should beginners always start with FBA?
Mostly yes, unless your product is very bulky or niche.
✅ Conclusion
Both Amazon FBA and FBM are powerful ways to sell on Amazon in 2025.
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FBA is best for beginners, fast-scaling sellers, and lightweight products.
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FBM is best for experienced sellers, custom/niche products, and bulky items.
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The hybrid model (FBA + FBM) is the ultimate strategy for many successful sellers.
👉 If you’re just starting out, check our Amazon FBA Business Guide.
👉 If you want more control, read our Amazon FBM Business Guide.
With the right strategy, you can combine both and build a profitable Amazon business in 2025 and beyond.