What Is the Difference Between Amazon FBA and FBM? Which One Is Best for You?

July 2, 2025

What Is the Difference Between Amazon FBA and FBM? Image

When planning to sell on Amazon, one of the most important decisions you'll face is choosing between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).

Understanding these two fulfillment models is crucial for determining which best suits your business needs, budget, and long-term strategy.

In this article, we break down the differences between Amazon FBA and FBM in a simple and practical way to help you make an informed decision.

What Is Amazon FBA?

FBA stands for “Fulfillment by Amazon,” meaning Amazon handles storage, packing, shipping, customer service, and returns for your products.

You just send your inventory to Amazon's warehouses, and they take care of the rest.

Advantages of FBA:

Faster delivery with Amazon Prime eligibility
Customer service and returns managed by Amazon
Increased visibility and better search ranking
Saves you time and effort on logistics and shipping

Disadvantages of FBA:

Higher storage and fulfillment fees, especially for large or slow-moving products
Less control over inventory management
Must comply with strict packaging and labeling requirements

What Is Amazon FBM?

FBM stands for “Fulfillment by Merchant,” meaning you are responsible for storing, packing, and shipping products directly to customers, either yourself or through a third-party logistics provider.

Advantages of FBM:

Full control over packaging, shipping, and returns
Ideal for customized products or items needing special handling
Potentially lower fees if you have an efficient logistics system

Disadvantages of FBM:

Requires expertise in inventory and shipping management
Customer service responsibility falls entirely on you
No Prime badge, which may affect buyer confidence and sales

How to Choose Between FBA and FBM?

Your choice depends on several factors such as:

Business scale: FBA suits sellers aiming for fast growth
Product type: Heavy or fragile items may be costly with FBA
Logistics infrastructure: If you have warehouses and staff, FBM may be cost-effective
Cost: Calculate all fees carefully to determine which option offers better profit margins

Can You Use Both FBA and FBM?

Yes, many sellers combine both. For example, using FBA for fast-selling products and FBM for custom or limited-stock items. This hybrid approach provides flexibility and reduces risks.

How ScaleZone Helps You Decide

At ScaleZone, we guide you in selecting the best fulfillment method based on your products, costs, and business goals. Our comprehensive services include:

Preparing products for Amazon warehouse shipment
Setting up internal warehousing or third-party logistics for FBM
Managing orders, returns, and performance reporting
Calculating true costs to support informed decisions

With ScaleZone, you're not just choosing a fulfillment method — you're building a smart, efficient system to grow your Amazon business confidently