FBA vs. FBM: Which Fulfillment Method Is Right for New Amazon Sellers?
Jun 13, 2025
Tips
Amazon
by Troy Velie
One of the biggest decisions you’ll make as a new Amazon seller is how you’ll handle order fulfillment. Will you pack and ship everything yourself, or let Amazon take care of it for you? That’s the core difference between FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant). In this post, we’ll break down the pros and cons of each method so you can choose the best path for your business goals, budget, and bandwidth.
What Is FBA vs. FBM?
Fulfillment by Amazon (FBA) means Amazon stores your products in its warehouses, picks, packs, ships, and handles customer service for you.
Fulfillment by Merchant (FBM) means you, the seller, are responsible for storing, packing, and shipping orders and handling customer service.
In short:
FBA = Hands-off, Amazon handles logistics.
FBM = DIY fulfillment, you keep control.
Why It Matters for Amazon Sellers
Your fulfillment method affects everything from customer experience to your profit margins. Here’s how each one can impact your business:
Benefits of FBA:
Prime eligibility (more visibility + higher conversion rates)
Faster, Safe, and more streamlined shipping. Additional access to Amazon Global Logistics (AGL)
Amazon handles customer support and returns
Less day-to-day operational stress
Benefits of FBM:
More control over inventory and packaging
Lower fees for oversized or slow-moving items
Flexibility in using your own warehouse or 3PL
Step-by-Step: How to Decide Between FBA and FBM
Consider your budget - FBA has storage and fulfillment fees that can eat into profits, especially for large or slow-moving products.
Think about your time - FBA frees up your time; FBM requires hands-on work daily.
Evaluate your shipping capabilities - Can you reliably ship orders on time and manage returns?
Check product type and volume - FBA works best for small-to-medium, fast-moving products. FBM is often better for bulky or custom items.
Common Mistakes to Avoid
Assuming FBA is always cheaper – Factor in all fees, especially long-term storage.
Using FBA for oversized items – These can rack up major fees.
Underestimating FBM time commitment – Shipping daily gets old fast without a system.
Pro Tips from Our Team
Start with FBA if you’re launching a product and want traction fast. The built-in Prime badge can give you a boost.
Use FBM to test new SKUs before committing to FBA inventory.
Consider seasonal shifts - FBA is great for Q4, but FBM gives you flexibility during slower months.
Conclusion
There’s no one-size-fits-all when it comes to fulfillment. FBA offers scalability and simplicity, while FBM provides control and cost savings. The best option depends on your product, business model, and goals but the good news is, you can always pivot or mix both.
Want expert help deciding what’s right for you? Reach out to our team at Step by Step FBA, we’ve helped hundreds of sellers grow smarter with the right fulfillment strategy from day one.
Click here to learn more about working with us
About Troy Velie
I started my own Private Label Amazon Business 6 years ago and immediately witnessed the impact that having an effective ranking strategy can have in driving traffic. To that end I’ve devoted my time to understanding, improving, and optimizing strategies that deliver exceptional results in improving visibility and reach for any online business.
