Choosing a Fulfillment Model: FBA or FBM – Which One is Right for You?

E-commerce is booming, and Amazon remains the leading platform for those looking to expand their business globally. When starting to sell on Amazon, one of the most crucial decisions is selecting the right order fulfillment model. Each model comes with its own advantages and disadvantages, directly affecting costs, profitability, shipping speed, and customer experience. So, which option is best for you?

1. What Are FBA and FBM?

FBA (Fulfillment by Amazon):

FBA is a model where you send your products to Amazon’s warehouses, and Amazon takes care of everything from storage and packaging to shipping and customer service. Sellers can focus on product development and marketing while Amazon handles logistics.

FBM (Fulfillment by Merchant):

FBM is a model where you manage order fulfillment yourself. This means you store, package, and ship products directly to customers. You have full control over inventory management but must also invest in logistics and customer service.

Comparison:

2. Which Model Should You Choose?

Choose FBA if:

• You sell small, lightweight products, reducing FBA and storage fees.
• You don’t have storage space and need Amazon to handle fulfillment.
• You lack the time or resources to package and ship orders yourself.
• You want your products to be eligible for Prime Shipping to attract more customers.
• You want Amazon to handle customer service and returns.

Choose FBM if:

• You have a warehousing system and can optimize costs.
• You sell low-margin products and need better cost control.
• You want to build your own brand and offer a personalized shopping experience for customers.
• You value direct control over your business operations.
• Your products don’t fit Amazon’s FBA requirements.

3. 2025 Trends: What’s Changing for FBA & FBM?

Hybrid Model – Combining Both FBA and FBM:

• Multi-Channel Fulfillment (MCF): Amazon extends its FBA services through MCF, allowing sellers to use Amazon’s fulfillment network for orders placed on other platforms outside of Amazon.
• Seller Fulfilled Prime (SFP): If you want the benefits of Prime but still want control over fulfillment, SFP is a great option. You can display the Prime badge on your products while ensuring fast and reliable shipping.
• Buy with Prime: This feature allows sellers to display the Prime logo and fast shipping promise on their own websites.

The Rise of 3PL (Third-Party Logistics):

If you don’t want to use FBA but lack a strong fulfillment system, partnering with third-party logistics providers can help optimize costs.

Some 3PL Companies: Leaping Ape Logistics, HPW Cargo, Deutsche Post DHL Group

4. Conclusion

There’s no one-size-fits-all answer—just the best strategy for your business. If you want to take advantage of Amazon Prime and simplify fulfillment, FBA is a hassle-free solution. On the other hand, if having full control over your operations is a priority, FBM gives you the flexibility and independence to manage everything yourself.

As a trusted partner for Vietnamese sellers, LianLian Global provides fast and convenient Amazon payment solutions, helping you expand your business with ease and efficiency.

CONTACT LIANLIAN GLOBAL to get expert support in expanding your Amazon business and receiving payments seamlessly!