Amazon FBA vs. FBM: What's the Difference and Which Is for You?
One of the first big decisions you'll need to make is whether to use FBA (Fulfillment by Amazon) or FBM (Fulfillment by Merchant). Both methods allow you to sell on the Amazon marketplace, but they operate very differently and the right choice for you depends on your business goals and resources.
In this article, we'll break down what FBA and FBM are, compare the pros and cons of each, and help you determine which might be a better fit for your e-commerce business.
What is Amazon FBA (Fulfillment by Amazon)?
With Amazon FBA, Amazon handles the storage, packing, shipping, and even customer service. You can simply ship your products to Amazon's fulfillment centers, and they do the rest.
According to Helium 10, as of January 2025, 86% of Amazon’s 1.9 million active sellers use FBA.
Advantages of using Amazon FBA
FBA products are eligible for Amazon Prime, giving you access to 220 million subscribers worldwide.
Amazon handles the logistics, returns, and customer support, which can help you save time.
Disadvantages of using Amazon FBA
The fulfillment fees per unit can vary depending on the size and weight of your product.
You have less control and can't brand the packaging or control the unboxing experience.
What is Amazon FBM (Fulfillment by Merchant)?
Amazon FBM means you handle the entire fulfillment process yourself - or with the help of a third-party logistics partner (3PL). You are responsible for shipping, returns, and customer service.
Amazon FBM is more commonly used by larger brands, customer sellers or those who own their own logistics warehouse.
Advantages of using Amazon FBM
There are lower fulfillment costs as there are no FBA storage or handling fees.
You have full control over your brand packaging and managing customer interactions.
Cons of using Amazon FBM
You won't be automatically eligible for Amazon Prime, unless you qualify for Seller Fulfilled Prime, which has strict requirements.
You need to ensure that you have efficient operations to ensure fast and reliable shipping to your customers.
Which Is Right For Me: FBA or FBM?
✅ Consider using Amazon FBA if:
You're launching a product and want maximum reach
You want access to Amazon Prime customers
You want to be hands off in the fulfillment and logistics process
✅ Consider using Amazon FBM if:
You already have a warehouse or solution to fulfill and deliver products to customers
You want more control over packaging and delivery
You want to maximize profits
Can You Use Both?
The answer is yes, and many do use a hybrid approach!
Both FBA and FBM offer their unique advantages. Ultimately, choose the model that works best for you, where you can balance profitability, scalability, and control. After you launch on Amazon, the next focus is to ensure that you collect reviews from customers.
Other Resources
Here are some other resources to help you in setting up your GetReviews account and surveys:
What is GetReviews.ai?
GetReviews.ai is a tool designed for e-commerce sellers on Amazon, Walmart, and more to increase post-purchase customer engagement platform through QR codes, and survey flows and help generate more authentic, compliant product reviews and build stronger relationships with their customers after every sale.
Book a demo today to learn more: