Amazon FBA vs. FBM: Which is Right for Your Business? Pros and Cons to Consider
Co-authored by Jen Garza and ChatGPT
Amazon FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant) are two popular methods for selling products on Amazon. There’s no “right way,” each method has its own advantages and disadvantages, and it’s up to the seller to decide which approach works best for them.
Pros of Amazon FBA:
Convenience: Amazon FBA takes care of the entire fulfillment process, including packing, shipping, and handling returns. This frees up the seller to focus on other aspects of their business.
Prime Eligibility: Products that are fulfilled by Amazon are eligible for Amazon Prime, which can increase sales and visibility.
Increased Sales: Amazon FBA can increase sales due to the increased visibility of Prime eligible products and the convenience of Amazon's fulfillment process.
Customer Service: Amazon handles all customer service inquiries, which can save sellers time and resources.
Cons of Amazon FBA:
Cost: FBA fees can be higher than FBM fees, and additional fees can be incurred for long-term storage and removal of inventory.
Limited Control: Amazon has strict rules for FBA inventory, and sellers may have limited control over the shipping and handling process.
Inventory Management: Sellers need to send their inventory to Amazon, which can make inventory management more difficult.
Pros of FBM:
Cost: FBM can be more cost-effective than FBA, as there are no fulfillment fees.
Control: Sellers have more control over the shipping and handling process, as they are responsible for it.
Inventory Management: Inventory can be stored and managed by the seller, which can make inventory management more efficient.
Cons of FBM:
Time-consuming: FBM can be more time-consuming than FBA, as the seller is responsible for packing and shipping orders.
Prime Eligibility: FBM products are not eligible for Amazon Prime, which can limit visibility and sales.
Customer Service: The seller is responsible for handling all customer service inquiries, which can be time-consuming and potentially costly.
Overall, the choice between Amazon FBA and FBM depends on the seller's specific business needs, goals, and preferences. FBA may be more suitable for sellers who prioritize convenience and increased sales, while FBM may be a better choice for those who prioritize cost-effectiveness and control over the shipping and handling process.
