Logistics: FBA or FBM?

The two Amazon shipping options compared

Fulfillment by Amazon (FBA)

Shipping by Amazon: goods are already in Amazon warehouses.

Benefits:

  1. Prime badge on Amazon and greater chance of winning the Buy Box on multi-seller listings
  2. Packaging, shipping and any returns all handled by Amazon
  3. Next-day delivery
  4. Customers can use Amazon Locker delivery. Currently Lockers accept packages up to 42cm x 35cm x 32cm and a maximum weight of 4.5kg.

Fulfillment by Merchant (FBM)

Shipping handled by the seller.

Benefits:

  1. No Amazon storage fees
  2. Goods remain at your premises
  3. Full control over packaging and branding
  4. Suitable for oversized, heavy or special-requirement products not eligible for FBA
  5. No risk of Long Term Storage fees