When it comes to selling on Amazon in 2025, one of the biggest decisions you’ll face is how to fulfill your orders: Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM).

Choosing between the two isn’t just about logistics-it can directly affect your sales, visibility, customer experience, and profitability.

At eCommercean.com, we help Amazon sellers like you decide the right fulfillment model based on your product type, business size, and growth goals. In this blog, we break down FBA vs. FBM, compare their pros and cons, and help you decide which model fits you best in today’s market.

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 What is FBA?

Fulfillment by Amazon (FBA) means you send your products to Amazon’s warehouses, and Amazon handles:

• Storage

• Packing

• Shipping

• Returns

• Customer service

All you need to do is keep inventory in Amazon’s fulfillment centers.

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 What is FBM?

Fulfillment by Merchant (FBM) means you (or your team) store and ship the products directly to customers. You control:

• Inventory

• Packaging

• Shipping

• Returns

It gives you more flexibility but also more responsibility.

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 FBA vs. FBM: Feature-by-Feature Comparison

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 Advantages of FBA in 2025

1. Prime Badge = More Sales

Over 70% of Amazon sales go to Prime-eligible products. With FBA, you automatically get the Prime badge, which boosts:

• Click-through rate

• Conversion rate

• Customer trust

2. Buy Box Edge

Amazon gives FBA sellers an algorithmic advantage when competing for the Buy Box-especially for fast-moving, competitive categories.

3. Amazon Handles the Hard Stuff

FBA lets you outsource:

• Logistics

• Customer service

• Return handling
  Which saves time and lets you focus on ads, listings, and growth.

4. Access to Global Markets

With FBA Export, you can easily sell to customers in other countries without setting up international shipping infrastructure.

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 Disadvantages of FBA

1. High Fees

Amazon charges for:

• Fulfillment per unit

• Storage (monthly + long-term)

• Removal or disposal

• Returns (in certain categories)

Your margins can get squeezed fast, especially for low-cost or bulky products.

2. Storage Limitations

Amazon limits how much inventory you can store (based on your IPI score), which makes it hard to stock up during seasonal spikes unless you plan well in advance.

3. Less Branding Control

All packages are shipped in Amazon-branded boxes, which reduces your ability to build a distinct customer experience.

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 Advantages of FBM in 2025

1. Lower Costs

You save on FBA fees and only pay for what you actually ship. This works especially well if:

• You sell low-margin products

• You already have a warehouse or 3PL

• You sell in bulk or B2B

2. More Brand Control

You get to design custom packaging, add inserts, and build a direct relationship with customers (great for building brand loyalty and D2C cross-sells).

3. Better for Slow-Moving Products

FBM is more cost-effective for:

• Niche, slow-selling items

• Oversized or heavy products

• Seasonal or made-to-order products

You’re not paying Amazon to store stock that’s just sitting there.

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 Disadvantages of FBM

1. No Prime Badge (Unless You Use SFP)

No Prime = less visibility and fewer sales, especially in competitive categories.

If you qualify for Seller Fulfilled Prime (SFP), you can retain the badge-but Amazon’s standards are high and not easy to maintain.

2. Buy Box Challenges

FBM sellers often lose the Buy Box to FBA competitors unless they offer a much lower price or faster shipping.

3. You Handle All Operations

From customer complaints to late delivery problems-you’re responsible. It’s fine when volumes are low, but harder as you scale.

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 When to Choose FBA

FBA is ideal if:

• You want fast scaling with minimal operations

• You sell lightweight, fast-moving items

• You want access to Prime customers

• You lack your own warehouse or logistics network

Pro Tip: At eCommercean, we help sellers set up profitable FBA strategies with weekly ACoS optimization and inventory planning.

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 When to Choose FBM

FBM is best if:

• You want maximum margin control

• You already have a warehouse or 3PL

• You sell large, heavy, or slow-moving items

• You want custom packaging and branding control

We help our FBM clients set up automated shipping, branded packaging, and efficient returns management.

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 Hybrid Model: The Best of Both Worlds?

Many successful sellers use a hybrid FBA + FBM strategy:

• Use FBA for bestsellers and high-volume items

• Use FBM for oversized, seasonal, or low-volume SKUs

• Have FBM as a backup to prevent stockouts during FBA delays

This gives you flexibility, redundancy, and cost balance.

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 Real-World Example

Client A (Grooming Product Brand):

• Switched to full FBA

• Got Prime badge → CTR went up by 38%

• Reduced return handling time by 90%

• Grew revenue from ₹1.2L to ₹4.8L/month in 3 months

Client B (Home Decor Seller):

• Moved bulky SKUs to FBM

• Reduced FBA fees by 45%

• Launched custom packaging for branding

• Maintains hybrid model during festivals

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 Conclusion: FBA or FBM-It Depends on YOUR Strategy

There’s no one-size-fits-all answer. It depends on:

• Your product type

• Your scale

• Your logistics capacity

• Your long-term brand goals

At eCommercean.com, we help Amazon sellers like you decide, implement, and optimize the right fulfillment strategy for 2025 and beyond.

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📞 Need Help Deciding?

Book a free fulfillment strategy consultation at www.ecommercean.com and let our experts review your product portfolio to suggest the best path forward.