FBA vs FBM
Should I use Fulfillment by Amazon or fulfill my own orders?
FBA (Fulfillment by Amazon)
Option A- From
- Per-unit fees + storage
- Trial
- —
- For
- Standard-size, fast-moving consumer products
+ Prime badge, Buy Box, scale
− Storage fees, IPI, long-term storage penalties
FBM (Fulfillment by Merchant)
Option B- From
- Self-pay shipping
- Trial
- —
- For
- Oversized, custom, or low-velocity items
+ Full margin control, customer experience
− No native Prime badge, Buy Box harder to win
| Dimension | FBA (Fulfillment by Amazon) | FBM (Fulfillment by Merchant) |
|---|---|---|
| Prime badge | Yes (automatic)✓ | Only via Seller Fulfilled Prime |
| Buy Box win rate | High✓ | Lower (price-competitive) |
| Storage cost | $0.87/cu ft (standard, off-peak) | Your warehouse or 3PL |
| Long-term storage penalty | Yes (365+ days) | No✓ |
| Returns handling | Amazon-managed✓ | You manage |
| Customer service | Amazon-managed✓ | You handle |
| Best margins on | $15-100 AOV, < 2lb | $100+ AOV, oversized |
| Inventory velocity required | High (3+ turns/year) | Any✓ |
Pick FBA if your product fits the standard mold
FBA is built for standard-size consumer products with broad demand. If your AOV is under $100, weight is under 2lbs, and you're moving at least 3 inventory turns per year, FBA's fee structure pays back the convenience. The Prime badge alone lifts conversion rates by 20-40% in our panel data. The traps to avoid: don't over-commit inventory (IPI dropping under 400 triggers restock limits), and clear long-term storage before the 12-month penalty kicks in.
Pick FBM for oversized, custom, or low-velocity items
FBM gives you margin control and direct customer relationships at the cost of operational overhead. It's the right answer when your product is heavy (over 20lbs), oversized (over standard FBA size tier), customized per order, or moves slowly enough that FBA storage fees would eat your margin. Seller Fulfilled Prime is the bridge for FBM sellers who want the Prime badge — you commit to Prime-eligible shipping speeds and Amazon vouches for you.
Worth a look
- MCF (Multi-Channel Fulfillment)
- 3PL hybrid