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amazon fba vs fbm

Amazon FBA vs FBM

5 Things You Must Know about Orders Fulfilled by Amazon

Amazon FBA vs. Shopify: Which One Should You Choose in 2022?

Amazon FBA vs FBM: Which Is Really Better?

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Amazon FBA vs FBM: Which Is Really Better?

What is the difference between selling on Amazon using Fulfillment by Merchant (FBM) and Selling on Amazon using Fulfillment by Amazon (FBA)? If you’re thinking of starting an eCommerce business, then this article will help you understand how to choose between these two options. We’ll also look at some of the pros and cons of each option, so that you can make a more informed decision about which one is best for your business.

Table of Contents for Easy Reading

  • Amazon FBA vs FBM: Which Is Really Better?
      • RelatedPosts
      • Approval for New Sellers on Amazon: How Long Does It Take?
      • Amazon Seller Permit Requirements: Things You Need To Know
      • How to Maximize Amazon Conversion
    • What is Amazon FBA?
    • What is Amazon FBM?
    • The Pros and Cons of Amazon FBA
    • The Pros and Cons of Amazon FBM
    • Amazon FBA vs FBM: Which is Better between them?
    • Frequently Asked Questions
      • Can I use both Amazon FBA and Amazon FBM?
      • How much does it cost to use Amazon FBA?
      • Is it worth it to get an Amazon FBA account?
    • Conclusion

We’ll also take a look at some of the benefits and drawbacks associated with each option so that you can decide whether or not they are right for your business. Finally, we’ll give our verdict on which method we think is better overall. So let’s get started.

RelatedPosts

Approval for New Sellers on Amazon: How Long Does It Take?

Amazon Seller Permit Requirements: Things You Need To Know

How to Maximize Amazon Conversion

What is Amazon FBA?

Selling on Amazon’s FBA platform means that you send your products to one of their warehouses, where they will be stored while you manage the sales side of your business. Amazon will then package and ship the item for you when someone places an order.

Once it reaches its destination, Amazon will also handle customer service, returns, and refunds.

What is Amazon FBM?

The merchant-fulfilled model, or FBM for short, means that you essentially become the shipping department of your business. When someone makes an order, you will be responsible for selecting the product, packaging it up, and delivering it to the customer’s door. There isn’t much in the way of customer service, returns or refunds to worry about, as Amazon doesn’t get involved in this process.

The Pros and Cons of Amazon FBA

Pros
  • Increased exposure and reach: Your product will be exposed to Amazon’s huge customer base when you sell on Amazon. This can be a great way to increase your sales and grow your business.
  • Amazon Prime: Anyone subscribed to Amazon Prime will be more likely to buy your product as they get free two-day shipping on all orders.
  • Customer service: Amazon is known for providing excellent customer service, which can help you build trust with your customers and potentially increase your sales.
  • Low return rates: Amazon has a large customer base, and most people who shop on their site already have an account, meaning that they are more likely to be repeat customers. This also means that there aren’t many returns because it is easier for the customer to keep buying from you again in the future.
Cons
  • Costs: There can be some costs associated with using Amazon’s FBA service. You will need to pay for shipping to send your products to their warehouse, and you may also be charged storage fees if your products take up too much space.
  • Limited control: When you use Amazon’s FBA service, you are essentially giving up some control of your business to Amazon. They will be in charge of shipping and handling customer service, which may not be ideal if you want a more hands-on approach to your business.

The Pros and Cons of Amazon FBM

Pros
  • You have more control over your business: As the seller, you are in charge of all aspects of the shipping and customer service process. This can be a good or bad thing, depending on your preference.
  • Fewer costs: There aren’t many costs associated with the FBM model, which can be good news if you don’t want to spend too much money on your business.
  • You can run it as a side hustle: If you use FBM, but you also need a job, this is a good option for diversifying your income, as you can run the business alongside your main job.
Cons
  • You need to handle the shipping process: Another pro about using Amazon’s FBA service is that it takes care of shipping for you. If you want to use FBM, then you will need to find a way to ship your products to the customer’s door.
  • Limited reach: Unlike Amazon FBA, you will not have access to Amazon’s huge customer base when using FBM. This can be a disadvantage if you are looking to grow your business.
  • No Prime benefits: As mentioned before, anyone subscribed to Amazon Prime gets free two-day shipping on all orders. If you are not subscribed to Prime, your customers will need to wait a little longer for their products to arrive.
  • Customer service: You will need to provide customer service for your products using the FBM model. This can be a lot of work, especially if you are not used to dealing with customers.

Amazon FBA vs FBM: Which is Better between them?

Now that we have looked at the pros and cons of both Amazon FBA and FBM, it is time to decide which is better for you. 

If you are looking for a more hands-on approach to your business, the FBM model may be a better option. It will allow you to have more control over your business and be a good option for those who need a side hustle alongside their main job. 

However, suppose you are looking to grow your business and exposure or focus more on customer service. In that case, Amazon’s FBA is a better option as it has access to Amazon Prime benefits and makes it easier to provide great customer service.

You might want to know more options so here’s another blog you can read: Amazon FBA vs Dropshipping vs Affiliate Marketing: Where to Start?.

Frequently Asked Questions

Can I use both Amazon FBA and Amazon FBM?

Yes, you can use both Amazon FBA and Amazon FBM. It is possible to run your business alongside your main job using the FBM model while also having access to Amazon Prime benefits with Amazon’s FBA service.

How much does it cost to use Amazon FBA?

There are costs associated with using any of Amazon’s services, but they will generally be less than what other businesses charge for their fulfilment services.

Is it worth it to get an Amazon FBA account?

It depends on your goals with the business. If you are looking to grow your company or offer better customer service, having access to Amazon Prime benefits is an excellent reason to use their FBA service.

Conclusion

The FBM model may be a good option if you are starting out then, as it is often cheaper than using Amazon’s FBA services. Still, if you want to grow your business or need more support with customer service, then Amazon’s FBA is probably a better choice.


When choosing between Amazon FBM and FBA, there are benefits and costs to both. If you want to provide the best customer service, then go with Amazon’s FBA services, but if you would prefer more control over your business, then go ahead and use the FBM model. That said, for either of these options to be successful, you will need to ensure that your products are received on time by your customers so that they can leave great reviews.

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