FBM is Fulfillment by Merchant, seller receives the order, fulfills the order and transmits shipping information back to Amazon.

FBA is Fulfillment by Amazon, seller ships product to the Amazon fulfillment center.  Amazon ships your products to the customer.

When does FBA vs FBM. make the most sense?

Total Units per order 2 or more

Amazon FBA fees multiply with each additional unit making it quite expensive for 2 or more units/order. The cost of the second (or more) unit fulfillment and shipping costs for FBM is usually small.

Light Package weight

  • Less than 16 oz for USPS First Class or
  • Less than 650 cubic in for 2 Day

FBA Inventory Limits/ Receiving issues

  • Avoid Inventory Limits – We are all aware of the multitude of issues FBA sellers have experienced with Amazon receiving limitations and severe delays resulting in stock outs resulting in the loss of organic BSR. When you are forced put overage inventory into a 3PL and drip feed FBA, these additional hidden costs become significant. Some have solved this by hybriding both FBA and FBM.
  • Avoid Extreme Amazon Receiving Delays and issues.

Superior Delivery is Important – Actual 2 Day delivery

We have all seen that FBA Prime delivery does not mean 2 day any longer. We have seen promised deliveries of a week or more in a Supposed Prime item. Our FedEx 2Day delivery is actually 2 business day service.

Seller Fulfilled Prime

Unfortunately Amazon poison pilled Seller Fulfilled Prime in Feb 2021 imposing impractical requirements that FBA itself cannot meet. FBM/SFP sellers far outperformed FBA delivery in 2020. As Amazon comes under Anti-trust pressure, these is some hope they will be required to roll back these changes.

Have Any Question?

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