For businesses selling on Amazon, choosing the right fulfilment model is one of the most important strategic decisions to make. Amazon marketplace offers two main options: FBA (Fulfilment by Amazon) and FBM (Fulfilment by Merchant), each with its own advantages, costs, and operational impact.

Both models can lead to success, but they shape your business differently. FBA offers reach and automation, while FBM provides independence and control. The right choice depends on your priorities, whether that’s convenience, cost, or brand consistency.

Understanding the Two Models

Before deciding between FBA and FBM, it helps to understand how they work in practice.

Fulfilment by Amazon (FBA) means sending your products into Amazon’s network of warehouses. Amazon then manages storage, picking, packing, shipping, and even customer service.

Fulfilment by Merchant (FBM) means you, or an external logistics provider like FuturePro Logistics, retain responsibility for order fulfilment. You store the products, manage inventory, and arrange delivery directly to the customer. This approach is more customisable and personable with a dedicated Account Manager.

Both approaches can be effective, but they offer very different levels of control, cost exposure, and customer experience.

The Advantages and Limitations of FBA

For many sellers, FBA is attractive because it simplifies operations. By outsourcing fulfilment to Amazon, businesses can focus on marketing, product development, and growth.

Key strengths of FBA:

• Automatic access to Amazon Prime customers and fast delivery options.
• Amazon handles returns, customer service, and logistics.
• Enhanced customer trust as the listings are marked “Fulfilled by Amazon”.

However, these benefits come at a cost. FBA fees can add up quickly, especially for slow-moving stock or products that require long-term storage and for small businesses, that can have a significant impact on margins. Sellers also give up control over packaging, branding, and customer communication which can limit how a brand is presented.

For high-volume, fast-turnover products, FBA can be highly effective. For niche or seasonal goods, the cost and rigidity can make it less practical.

The Advantages and Limitations of FBM

FBM gives sellers greater autonomy. You maintain control of your inventory, choose your packaging, and oversee the delivery process, either directly or through a professional fulfilment partner.

Key strengths of FBM:

• Cost flexibility: You pay only for the storage and services you use, avoiding FBA’s fixed fee structure.
• Brand control: You can use custom packaging and inserts to reinforce brand identity.
• Multi-channel management: FBM allows you to fulfil orders from multiple sales channels, not just Amazon.

There are, of course, responsibilities that come with this flexibility. Sellers must ensure orders are processed quickly, returns handled efficiently, and delivery standards consistently met. For those unable to dedicate internal resources, outsourcing to a UK-based 3PL can bridge the gap.

This comparison highlights the trade-off between convenience and control. FBA reduces operational workload but limits flexibility; FBM demands more management but offers independence and stronger brand alignment.

A Hybrid Approach

For some sellers, they find success by combining both models. A hybrid fulfilment strategy uses FBA for fast-moving items that benefit from Prime visibility, while managing larger and bulkier stock through FBM to reduce costs.

This dual approach allows sellers to:

• Optimise costs by storing products strategically.
• Maintain Prime access without overcommitting to FBA storage fees.
• Preserve brand control for premium or customised product lines.

For many growing ecommerce brands, this balanced approach offers the best of both worlds.

Building an Efficient FBM Model

For sellers opting for FBM, fulfilment quality is key. Customers expect the same delivery speed and reliability they receive through Amazon Prime. That’s why working with an experienced logistics partner can be invaluable.

A good fulfilment provider should offer:

• Seamless Amazon Seller Central integration for real-time order syncing.
• Late daily courier collections to meet customer expectations.
• Scalable storage and pick-and-pack operations to support growth.
• Experience handling regulated goods such as alcohol or beauty products.

An efficient FBM model mirrors Amazon’s standards while retaining brand identity, something that’s becoming increasingly important in a competitive marketplace.

There’s no single answer to the FBA vs FBM question only what best fits your business goals. FBA delivers reach and convenience for sellers prioritising volume, while FBM provides flexibility and brand control for those building a long-term identity.

Understanding both models allows sellers to make informed, strategic choices that align with their growth plans. Whether through Amazon’s network or your own fulfilment operation, success ultimately depends on the consistency, reliability and customer experience you deliver.

FAQs

What’s the main difference between Amazon FBA and FBM?

FBA means Amazon stores and ships your products, while FBM means you or your logistics partner manage fulfilment directly.

Is FBM cheaper than FBA?

In many cases, yes — particularly for slower-moving or niche products. FBM offers more cost control since you pay only for the services you use.

Can I use both FBA and FBM?

Yes. Many sellers adopt a hybrid model, using FBA for high-volume items and FBM for low-volume or oversized products.

How do I manage FBM efficiently?

Use a professional fulfilment partner that integrates with Amazon systems, ensuring consistent dispatch times, accurate order handling and clear stock visibility.