Amazon FBA vs. FBM: What’s the Real Difference?
Apr 2, 2025
Joel Turcotte Gaucher
Amazon FBA vs. FBM: Which Fulfillment Method Is Right for You?
If you’re launching your first product on Amazon, one of the first decisions you’ll need to make is how you want to fulfill your orders.
Amazon offers two core fulfillment options:
FBA (Fulfillment by Amazon)
FBM (Fulfillment by Merchant)
But what’s the difference? And which one is right for your business?
At Flapen, we help first-time sellers launch private label brands in under 5 months—and choosing between FBA and FBM is part of every launch strategy.
In this guide, we’ll explain what each fulfillment method means, how they affect your margins and customer experience, and when each makes sense—so you can choose with confidence.
Table of Contents
What Is Amazon FBA?
What Is Amazon FBM?
Pros and Cons of Amazon FBA
Pros and Cons of Amazon FBM
FBA vs. FBM: Which Should You Choose?
Final Thoughts
1. What Is Amazon FBA?
Fulfillment by Amazon (FBA) means Amazon stores your products in their warehouses and handles:
Packing and shipping
Customer service
Returns and refunds
You ship your inventory to Amazon’s fulfillment centers in bulk, and they take it from there.
✅ FBA Highlights:
Prime badge on your listings
Fast, trusted shipping
Hands-off fulfillment
Eligibility for Brand Registry tools like Vine and A+ Content
2. What Is Amazon FBM?
Fulfillment by Merchant (FBM) means you (or your warehouse or 3PL) are responsible for:
Storing inventory
Packing and shipping each order
Handling customer service and returns
You're still selling through Amazon’s platform—but fulfillment happens outside Amazon’s system.
3. Pros and Cons of Amazon FBA
Pros of FBA | Why It Matters |
|---|---|
✅ Prime eligibility | Increases visibility and conversion |
✅ Hands-off logistics | Amazon picks, packs, ships, and handles returns |
✅ Better Buy Box win rate | FBA sellers are more likely to win the Buy Box |
✅ Trusted customer experience | Faster shipping = fewer complaints or returns |
✅ Scales easily | You can grow without needing warehouse space |
Cons of FBA | Why It Matters |
|---|---|
❌ Higher fees | FBA fees add up, especially for low-priced or bulky items |
❌ Less control over storage | You can’t access your inventory on demand |
❌ Amazon storage limits or restrictions | Especially during Q4 or for new sellers |
❌ Prep requirements | Must label, bag, and package according to FBA rules |
4. Pros and Cons of Amazon FBM
Pros of FBM | Why It Matters |
|---|---|
✅ Lower fulfillment fees | Especially for heavy, slow-moving, or large items |
✅ More control over inventory | Store it wherever you want—your garage, a 3PL, etc. |
✅ Easier for small or seasonal product lines | Great for handmade or limited-quantity items |
✅ No FBA prep requirements | You control labeling, packaging, and shipment |
Cons of FBM | Why It Matters |
|---|---|
❌ No Prime badge (unless you join Seller Fulfilled Prime) | Lower trust and conversion rates |
❌ You handle customer service and returns | Time-consuming and inconsistent experience |
❌ Slower shipping = fewer sales | Buyers expect fast Prime delivery |
❌ Harder to scale | You must manage fulfillment as your volume grows |
5. FBA vs. FBM: Which Should You Choose?
✅ Choose FBA if:
You're launching a private label product
You want to qualify for Prime from Day 1
You're looking to scale quickly without managing logistics
You want to use Brand Registry tools like Vine and A+ Content
You’re selling standard-sized items under 20 lbs with decent margins
At Flapen, 95% of the sellers we work with launch using FBA—because it delivers faster results and a better customer experience.
✅ Choose FBM if:
You sell oversized, heavy, or low-margin products
You already have warehouse space or a 3PL partner
You want to test sales volume before committing to FBA
You're selling custom, handmade, or made-to-order products
You want to offer products not well-suited for Amazon's warehouse rules
💡 You can also use both. Many sellers use FBA as their primary method and FBM as a backup to avoid stockouts.
6. Final Thoughts
Choosing between Amazon FBA and FBM depends on your product, margins, and growth goals—but for most new sellers launching a private label brand, FBA is the clear starting point.
It saves time, builds trust with customers, and allows you to scale without dealing with the complexity of shipping and customer service.
At Flapen, we help first-time sellers navigate this decision based on real data—then handle sourcing, FBA prep, and shipping so your launch runs smoothly.
Related Articles
Featured Articles
Latest Articles
