FBA vs FBM: Best Strategy for Your Amazon Business

Part 1: Understanding FBA and FBM for Amazon Sellers’ Success

Amazon sellers have two main options for fulfilling orders: FBA and FBM. Knowing the differences helps you choose the right method for your products and goals.

Fulfillment by Amazon (FBA)

Fulfillment by Amazon (FBA) is a service where a seller or supplier sends products to Amazon’s fulfillment centers. Amazon then stores, picks, packs, and ships the products. They also handle customer service and return.

Many sellers prefer FBA because it allows them to focus on other aspects of their business while benefiting from Amazon’s shipping network and access to Prime customers.

Fulfillment by Merchant (FBM)

Fulfillment by Merchant (FBM), also called Amazon FBM, is when the seller manages storage, packing, shipping, and customer service themselves or through a third-party fulfillment center. FBM gives sellers more control over the customer experience and is often used for oversized, fragile, or slow-moving products.

Which Amazon Fulfillment Method Should You Use?

Choosing between FBA and FBM depends on your business type, product size, and resources. Here’s a quick overview:

Use FBM if:

• You want more control over your customers
• You provide excellent customer service
• Your products are oversized or heavy
• You have logistics in place
• You can manage fulfillment costs
• Your inventory sells slowly

Use FBA if:

• Your products are small and lightweight
• You don’t mind letting Amazon manage customer service
• Your inventory turns over quickly
• You don’t have your own fulfillment system
• Fulfilling products yourself would be more expensive

Many sellers use both methods. According to Jungle Scout, 14% of sellers use both FBA and FBM, while 64% sell FBA only, and 22% sell FBM only. Using both allows you to manage different types of products more efficiently. For example, you can use FBM for large, slow-selling items and FBA for small, fast-moving products.

Part 2: Comparing Fees and Using FBA vs FBM Calculator Tools

Understanding fees is essential when deciding FBA vs FBM. Each method has different costs that affect your profitability.

Amazon FBA Fees

FBA sellers pay fees that include:

• Fulfillment fees: Based on product size and weight
• Monthly storage fees: Charged per cubic foot of storage
• Long-term storage fees: For products stored over 365 days

These fees cover shipping, packing, and handling, as well as customer service.

Amazon FBM Fees

FBM sellers avoid FBA fees but still incur:

• Shipping costs to customers
• Packaging costs
• Storage costs
• Labor for handling orders

For certain products, FBM may be cheaper. For example, large items like non-inflatable kayaks can cost over $300 in FBA fees, while self-fulfilling might only cost $100, saving around $200 per unit plus storage fees.

Using an FBA vs FBM Calculator

Amazon offers an FBA vs FBM calculator that helps sellers compare costs and profits. By entering product costs, shipping expenses, and fees, you can determine which method is more profitable. Calculating fees before choosing a fulfillment method ensures better financial decisions.

By comparing Amazon FBA vs FBM fees using a calculator, sellers can see which method works for small items, bulky items, or seasonal products. High-volume, lightweight items often perform better with FBA, while slow-moving, oversized products may benefit from FBM.

Part 3: Pros and Cons of FBA vs FBM for Amazon Sellers

Every fulfillment method has benefits and drawbacks. Understanding FBA vs FBM pros and cons helps sellers make informed choices.

FBA Pros and Cons

Before choosing a fulfillment method, it’s important to understand the advantages and disadvantages of FBA. The table below highlights key FBA pros and cons for sellers.

FBM Pros and Cons

When choosing between fulfillment methods, understanding the advantages and disadvantages of Amazon FBM helps sellers decide if self-fulfillment fits their products and business goals.

Practical Example:

Small electronics often perform better with FBA due to fast shipping and Prime eligibility. Large furniture or appliances are often more profitable with FBM because shipping through Amazon is expensive.

For sellers exploring Amazon FBA vs dropshipping or Amazon FBA vs shipping yourself, considering product size, turnover rate, and storage costs is key to selecting the right method.

Part 4: Advanced Fulfillment Strategies and Amazon Seller Options

Sellers are not limited to just FBA or FBM. Advanced strategies can combine the benefits of both methods.

Hybrid Models

Using both FBA and FBM for different products or the same ASIN allows flexibility. For example, if FBA inventory runs out, FBM can fulfill orders to avoid losing sales.

Seller Fulfilled Prime vs FBA

Seller-Fulfilled Prime lets FBM sellers offer Prime shipping while managing fulfillment themselves. This is useful for sellers with logistics already in place but who want the Prime badge for faster sales.

Seasonal and Scaling Strategies

For products with fluctuating demand, sellers can switch between FBA and FBM based on volume. High-turnover products can go to FBA, while slow-moving or oversized items remain FBM. Scaling your business with both methods maximizes profit and efficiency.

Bonus Tip: Enhance Amazon Listings Using PixPretty AI Tool

High-quality images are key to higher sales on Amazon. PixPretty AI Photo Editor helps sellers enhance product photos quickly and professionally. It improves clarity, color, and detail, making products look more appealing and trustworthy. Clear, optimized photos attract more clicks, boost visibility, and increase conversions.

Key Features of PixPretty AI Photo Editor

• Auto background removal for clean, focused product images.
• Color correction for vibrant, realistic visuals.
• Detail enhancement to highlight textures, logos, and key features.
• Batch editing to save time when managing large inventories.

FAQs about FBA vs FBM

Q1: Which is more profitable: FBA or FBM?

Profitability depends on product size, turnover, and fees. FBA is ideal for small, fast-selling products, while FBM can be more profitable for bulky or slow-moving items.

Q2: Does FBM ever beat FBA for small products?

Yes, if you can ship efficiently at a lower cost than Amazon’s FBA fees, FBM may be more profitable even for small items.

Q3: What happens if I use both FBA and FBM for the same SKU?

You can list both fulfillment methods under one ASIN. If FBA stock runs out, FBM can fulfill remaining orders, preventing missed sales.

Q4: How do I use the FBA vs FBM calculator correctly?

Enter your product’s cost, shipping, and fees for both FBA and FBM. The calculator will estimate profits, helping you choose the best method.

Conclusion

Choosing between FBA and FBM depends on your products, business model, and resources. FBA suits small, fast-selling items and gives access to Prime customers, while FBM offers more control for large or slow-moving products. Many sellers use both to balance efficiency and profits.

Use tools like the FBA vs FBM calculator to compare costs, and PixPretty AI Photo Editor to enhance product images and boost conversions. Knowing your fulfillment options is key to growing a successful Amazon business.