FBA vs FBM Comparison

Should you let Amazon handle shipping, or do it yourself? The answer depends on your product size and margin.

1. FBA (Fulfillment by Amazon)

Pros: Prime Badge (Higher Conversion), Hands-off fulfillment, Amazon handles Returns.

Cons: Storage fees, Long-term storage fees, Lost inventory.

2. FBM (Fulfillment by Merchant)

Pros: Lower fees for heavy items, Control over packaging, No storage limits.

Cons: No Prime badge (unless SFP), You handle returns, Harder to win Buy Box.

3. The Winner?

For 90% of private label sellers: Start with FBA to get the sales velocity. Use FBM as a backup.