Amazon FBA vs FBM
                     Amazon FBA vs FBM (Ship Yourself) 
What Should You Do In 2022
Amazon business is one of the fastest and best ways of 
making money online. According to Sellerapp blog, Nearly 
9.5 million sellers are associated with Amazon platform 
globally.
Being a vast business platform, Amazon has given two 
options to sell on Amazon,
FBA(Fulfillment by Amazon)
FBM (Fulfilled by Merchant)
Fulfillment By Amazon 
(FBA)
The seller sends his inventory to Amazon warehouse. 
Amazon stores it in the warehouse. When seller receives 
the order, Amazon dispatch the order and deliver it to the 
customer.
The interesting side is 73% Amazon sellers uses FBA as a 
business model to sell on amazon (Source: Seller App).
Fulfillment By Merchant 
H(FeBreM, th)e merchant (seller) keeps inventory with himself. 
When the customer orders a product, he delivers the order to 
the customer through shipping carrier (Fedex, UPS, USPS 
etc).
Both Fulfillment by Amazon and FBM (fulfillment by merchant) 
are profitable models for sellers. They have their own pros 
and cons. If you picks what works the best for you, it would be 
easier to manage online business and make profit.
 Amazon FBA vs FBM (Pros and 
Cons) 
Fulfillment 
TChhea FnBnAe plrogram allows hassle free selling to sellers. 
Amazon handles shipping and fulfillment channel for FBA 
sellers. You put your inventory in the Amazon warehouse and 
when a customer purchase the product, Amazon ships it. 
Check the FBA business model.
Amazon charges a standard Amazon FBA fees to sellers on 
every order to fulfill the order based on product packaging 
weight.
While FBM sellers needs to handle the shipment process. When 
a customer order a product, Amazon will display you customer’s 
personal details for order fulfillment.
Amazon 
AFemeazson charges FBA fees and 15% referral fees on every FBA 
order to the seller. The FBA fees is based on the ordered unit 
package weight and its size.
Product Launch 
DAsu srtaatteido, nAmazon FBA involves sending your goods or inventory 
to their warehouse. You need to make a listing on Amazon, then 
need to make an FBA shipment plan. After the creation of 
shipment plan, Amazon will share you FBA labels, you need to 
carefully label it on your inventory and send it to the allocated 
warehouse. This process is little lengthy.
The inventory will be first received by Amazon, the pallets will be 
unpacked and the items will be manually scanned and arranged to 
the rack spaces.
Control
An FBM seller has more control on its business than an FBA 
seller. Suppose, you are doing an FBA business and getting 
returns because of product damage or other issue. It is 
impossible for you to reach the Amazon warehouse and 
manually inspect the rest inventory. It is one of the major 
Amazon cons for sellers.
 Amazon will bill you for the shipping. Again, after inspection you 
will send inventory to Amazon. This means you will pay again for 
inventory shipment to Amazon warehouse.
Connectivity To The End 
ACmuasztoonm fuelfirllsed business never let the FBA sellers to have 
customer’s email and phone contact number details. This 
means, you can connect to your customer via seller central email 
system only.
Merchant fulfilled business involves order processing at the 
seller’s end. So, Amazon shares customer’s phone contact 
details and email to the seller. Here, one of the biggest benefits 
sellers can have is getting rid of negative reviews.
Seller Plan
Amazon has two selling plans for both FBA and FBM sellers, 
Individual and professional seller. The individual seller plan 
includes free product listing and selling but as obvious has 
certain limits. You can list as many listing but cannot run 
sponsored ads. 
Also, as an FBA seller, it allows you limited product storage to 
keep your inventory in the Amazon warehouse. In addition, you 
have to pay $0.99 USD on each order you receive Amazon.
Customer Support
As FBA sellers have kept the inventory on Amazon side, 
Amazon support team provides free customer support services 
to Amazon FBA sellers. They handle customers inquiries, 
complaints, and product return process. It is a time-saving thing 
for a seller. They are responsible for the complete process.
On the other hand, FBM seller has to handle the customer 
support. You either need to invest time or hire an eCommerce 
assistant to provide support, manage complaints and returns.
Prime 
TBhae dbiggeest advantage for being an Amazon fulfilled seller is prime 
delivery. Your listing will get a prime badge from the first day as Amazon 
delivery ensures guaranteed delivery within 48 hours to prime sellers.
Inventory And Order 
MAmaanzoang heasm heignh-tequipped warehouses to store and manage 
your products. They charges a fixed monthly storage fee to FBA 
sellers based on box size and space occupied (per cubic feet) by 
their inventory.
When a customer order a product, the Amazon team print the 
order slip and dispatch to the box. Amazon delivery team will 
process it to the customer’s destination. You do not need to look 
after it.
Buy Box
Buy Box is a button appear on the 
listing “Buy Now”. The customer 
can directly take the action on your 
listing and purchase the product.
It is available for FBA seller from 
the first day you list a new product 
on Amazon under FBA. As the 
inventory is available in Amazon 
warehouse, they are pretty sure of 
product delivery.
But, a FBM seller cannot expect a buy box from the first day. 
Though a FBM product priced under $25-30 see a buy box. 
But, it is not a case for every FBM listing. With time and 
authority, the listing wins the buy box.
Multi-Channel Order 
APnro FcBeAs sseillnerg has two options, either sell on Amazon or sell on 
both Amazon and other stores. This is what multi-channel ofder 
fulfillment (MCOF) mean. Suppose you receive an order on eBay 
or other site, you can use Amazon as a fulfillment channel.
Long-Term Storage Fee
As discussed, Amazon charges a fixed monthly storage fee to FBA sellers 
per unit. This fees is applicable for the first year only. If a seller does not get 
the stock sold under a year, the Amazon charges long-term storage fees to 
the remaining units available in the warehouse.
When To Do Fulfillment By 
Amazon?
• Small and lightweight products
• Fast selling product.
• No space to manage inventory.
• Product shipping fees is more as compared to FBA 
fees.
• Good profit margin on product (100-300% ROI)
• Less time for managing online business
• Good budget for investment
When To Do Merchant Fulfilled 
Business?
• Handmade or heavy weight products
• FBA fees is high compared to other shipping 
carriers.
• Enough space to keep inventory
• Enough time to manage orders and customer 
complaints
• Need more control on your business
• Less or no money start an Amazon business
FBA Or FBM Which Is Best For 
Different Business Models?
• Private label: FBA
• Online Arbitrage: FBA
• Retail Arbitrage: FBM or FBA (depends on profit 
margin)
• Dropshipping: FBM
• Wholesale: FBM or FBA
• Handmade goods: FBM
• Used items: FBM
Can I Do FBA And FBM Business 
Together?
Yes, Amazon does not bound any seller to opt for a 
single option. You can do FBA and FBM together. 
List your product under both FBA and FBM 
channels.
FOR MORE INFORMATION VISIT 
SITE
www.fbafbm.co
m
THANK YOU!