AMZTarget

What is the difference between FBA and FBM on Amazon?

Definition

FBA (Fulfillment by Amazon) means Amazon stores, packs, and ships your orders. FBM (Fulfilled by Merchant) means you ship them yourself.

FBA and FBM are the two main ways to deliver Amazon orders.

  • FBA, Fulfillment by Amazon: you send inventory to Amazon's warehouses. Amazon stores it, picks and packs orders, ships them, and handles customer service and returns. FBA offers are usually eligible for Prime.
  • FBM, Fulfilled by Merchant: you store the products and ship each order yourself or through your own logistics partner. Amazon also calls it merchant-fulfilled.

How they compare

  • Cost: FBA charges fulfillment and storage fees per unit. FBM has no Amazon fulfillment fees, but you pay for storage, staff, and shipping yourself.
  • Prime: FBA offers get the Prime badge almost automatically. FBM sellers can reach Prime only through Seller Fulfilled Prime, which has strict delivery requirements.
  • Control: FBM gives full control over packaging and stock. FBA trades that control for scale.
  • Risk: FBA ties stock up in Amazon warehouses with inventory limits and long-term storage fees. FBM depends on your own shipping speed and reliability.

FBA, FBM, and the Buy Box

Delivery speed and reliability matter for the Buy Box, so FBA offers often have an edge. It's not automatic: a much higher price can still lose to a fast FBM offer, and strong FBM sellers win the Buy Box regularly.

Running both on one ASIN

Many sellers offer one product both ways, for example FBA as the main offer and FBM as a backup when FBA stock runs out. Each offer has its own seller SKU, price, and stock. Price changes, promotions, and repricing apply to a specific SKU.

FBA and FBM in AMZTarget

AMZTarget Repricer works by seller SKU. If you sell an ASIN through both FBA and FBM, you pick exactly which offer to reprice, and each keeps its own minimum and maximum bounds. Listing monitoring alerts you to stockouts and Buy Box changes either way.

FAQ

Can I use FBA and FBM for the same product?

Yes. Create two offers with different SKUs. Many sellers use FBM as a backup while FBA stock is being replenished.

Does FBA win the Buy Box automatically?

No. It often helps through fast delivery, but price, stock, and account performance still decide.

Is FBM cheaper than FBA?

It depends on product size, sales speed, and your own shipping costs. Compare the full cost per unit, not just Amazon's fees.