FBA (Fulfilment by Amazon) and FBM (Fulfilment by Merchant) represent the two primary ways Amazon sellers can fulfil their orders. The right choice depends on your product category, margins, order volumes, and how much control you want over the fulfilment process. Here's a detailed comparison.
FBA means Amazon stores your inventory, picks and packs orders, and dispatches them to customers using Amazon's own courier network. Your FBA listings are eligible for Prime, which gives them a conversion advantage over non-Prime listings in the same category. Customer service for FBA orders (for delivery issues) is handled by Amazon. Returns are processed by Amazon and returned to their fulfilment centres.
The benefit is operational simplicity for your Amazon channel: you send stock in, Amazon does the rest. The cost is the FBA fee structure — referral fee + fulfilment fee + storage fee + potential surcharges — which can aggregate to 30–50% of revenue for lower-priced products.
FBM means you (or your 3PL) hold the inventory and fulfil each Amazon order directly to the customer. You control the packaging, the dispatch speed, and the service level. FBM listings are not automatically Prime-eligible, but Seller Fulfilled Prime (SFP) allows approved FBM sellers to display the Prime badge.
The benefit of FBM is cost control — you pay your 3PL's per-order rate rather than Amazon's combined fee structure, which is often lower for bulky, heavy, or low-price items where FBA fees are disproportionate. The trade-off is operational responsibility and, without SFP, the absence of the Prime badge.
PackPro supports both FBM and FBA prep services for Amazon sellers. Learn more about Amazon fulfilment with PackPro.