Amazon FBA vs FBM: Which Fulfilment Method Should You Choose?
Every new Amazon seller hits the same early question: should Amazon store, pack and ship your orders (FBA), or should you do it yourself (FBM)? There is no single right answer. This guide compares the two in plain language so you can choose based on your product, your budget and your time.
What is FBA?
Fulfilment by Amazon (FBA) means you send your stock to Amazon's fulfilment centres. When a customer orders, Amazon picks, packs and ships it, and handles customer service and returns for that order. Your listings can carry the Prime badge, which many shoppers filter for.
What is FBM?
Fulfilled by Merchant (FBM) means you keep the stock yourself (at home, in your own warehouse or with a 3PL) and ship every order directly to the customer. You are responsible for delivery speed, packaging, customer questions and returns, and you meet Amazon's shipping performance targets.
FBA vs FBM at a glance
| FBA | FBM | |
|---|---|---|
| Who stores and ships | Amazon | You (or your 3PL) |
| Prime badge | Yes, automatically | Only with Seller Fulfilled Prime, which has strict requirements |
| Fees | Referral fee plus fulfilment and storage fees | Referral fee plus your own packing and shipping costs |
| Customer service and returns | Handled by Amazon for FBA orders | Handled by you |
| Upfront cash | Higher: stock must be sent in before it sells | Lower: you can start with small stock |
| Control over packaging and inserts | Limited by Amazon's rules | Full control |
| Scaling | Easier once a product sells steadily | Gets harder as order volume grows |
When FBA is usually the better fit
- Your product is small, light and sells steadily.
- You want the Prime badge and the conversion boost that often comes with it.
- You do not want to spend your day packing parcels and answering delivery questions.
- You plan to grow and sell in several marketplaces.
When FBM is usually the better fit
- Your product is large, heavy, fragile or slow-moving, so storage and fulfilment fees would eat the margin.
- You are testing a new product and want to limit the cash you put into stock.
- You need custom packaging, personalisation or made-to-order items.
- You already have a warehouse or a reliable 3PL.
Why many sellers use both
You can run FBA for your best sellers and FBM for slow or bulky items, or keep an FBM listing as a back-up when FBA stock runs out. Many sellers start with FBM to test demand, then move proven products to FBA.
Five questions to ask before you decide
- After Amazon's fees and shipping, what margin is left per unit under each method?
- How much cash can I put into stock today?
- How many orders a day can I realistically pack and ship myself?
- Does my product have size, weight or category restrictions for FBA?
- Can I handle returns and customer messages quickly enough?
Common mistakes
- Choosing FBA without checking the fee for your exact size and weight band first.
- Sending in too much stock at the start and paying long-term storage fees.
- Choosing FBM and then missing delivery promises, which hurts your account health.
Not sure which one fits your product? We help sellers on all Amazon marketplaces with product research, listings, FBA set-up and account management. See our monthly plans (including an FBA Upgrade add-on), browse our services, or learn the whole process in our Amazon selling course.
This guide is general information, not financial advice. Amazon's fees and rules change, so always check the current fee schedule in Seller Central before you decide.