Learn the pros and cons between selling through the FBA program or FBM.
What’s the difference between selling products on the Amazon marketplace through the Fulfillment By Amazon (FBA) program and the Fulfillment By Merchant (FBM) program?
If you elect to participate in the FBA program, you pay Amazon to handle order fulfillment on your behalf. One of the biggest benefits of being an FBA seller is the ability to offer free Prime shipping for your products. With Amazon handling the bulk of the logistics, this option can be a real timesaver for many sellers.
On the other hand, fulfilling your own orders can work well if you have a workflow in place to do so quickly. Amazon customers expect fast shipping, so it’s important to get orders out quickly and accurately. While automatically enrolling products in the Prime program is one of the main advantages to fulfilling via FBA, FBM sellers can also offer Prime-eligible products. In order to do so, you must qualify for the Seller Fulfilled Prime program.
Some sellers prefer to focus solely on fulfilling orders via FBA or directly from their own warehouse, while others find themselves adopting a hybrid approach. Every Amazon business is different, so it’s important to find what works best for you. Your selling and fulfillment model may change over time, depending on your products and business focus.
We’ve created a quick checklist that details the pros and cons of fulfilling products via FBA and FBM. You can also dive deeper into the differences between the programs in this blog post by Liz Adamson. Fill out the form on the right to download the checklist.