Issue 127: Amazon FBA vs FBM: Which Fulfillment Option Is Right for You?
Hello, MyFBAPrep Sellers!
In this newsletter, we discuss FBA vs FBM, how to get on SFP, what items to sell with FBA, and much more.
Best Amazon FBA Products
The first step to find the best Amazon FBA products is to look at what’s selling. Amazon maintains a bestsellers list to help you get started. This article will share what items to look out for, and popular categories to look into.
What Is Amazon FBM Fulfillment?
Amazon Fulfilled by Merchant (FBM) is a fulfillment model where the seller is tasked with storing, packing, and shipping products to customers. Despite its extra responsibilities, this option offers significant flexibility, as you’ll have a hand in every step of the process.
Unlike the platform’s Fulfilled by Amazon (FBA) program, where Amazon manages logistics and everything in between, Amazon FBM fulfillment enables more customized buyer experiences, since you take care of every fulfillment aspect independently. That also means inventory storage and management, as well as packing, shipping, and customer service, take place at your end.
Amazon FBA vs FBM: Which Fulfillment Option Is Right for You?
Choosing the right fulfillment strategy can make or break your efforts on Amazon.
Your decision between the marketplace’s two programs — Fulfillment by Amazon (FBA) and Fulfilled by Merchant (FBM) — isn’t a matter of mere convenience; it’s a strategic choice that impacts aspects such as:
- Your profit margins
- Operational complexity
- Customer satisfaction
To help you select the right fulfillment model for your business, we’ll take an in-depth look at Amazon FBA vs FBM. We’ve weighed both options so you can consider their trade-offs and build a logistics strategy that aligns with your goals and supports smooth operations.
How to choose your fulfillment model.
SFP Amazon: Unlocking Seller Fulfilled Prime
The SFP program allows third-party vendors to offer Prime delivery without using Amazon’s fulfillment centers. Instead, sellers take care of storing, packing, and shipping goods from their own facilities while adhering to the platform’s stringent shipping standards.
Compared to FBA, where Amazon handles fulfillment and customer service, SFP enables sellers in the Fulfilled by Merchant (FBM) program to integrate their logistical operations into Prime’s infrastructure.
Once enrolled, you can display the Prime badge on eligible FBM listings, but you must consistently meet Amazon’s high standards for shipping, customer service, and delivery performance.
Learn how to unlock SFP and boost conversions.
3PL FBA Services to Reduce Overhead and Optimize Profit
FBA can get expensive when mismanaged. If inbound shipments aren’t planned properly, you’ll pay higher inbound placement fees. If products are prepped incorrectly, you could face costly fines and shipment rejection when sending goods to warehousing. Additionally, failure to plan ahead for replenishment can result in stockouts and lost sales. A 3PL that offers FBA services, though, can take much of that planning and prep out of your hands and handle it professionally to give you peace of mind.
See the 3PL services that can streamline your FBA success.
Exploring Amazon Seller Central Tips & Key Features
After perfecting your listings and going live on Amazon, you may find Seller Central overwhelming. This complex dashboard is packed with tabs, reports, and settings. Amazon Seller Central is your business’s command center, handling everything from inventory and orders to ads and customer interactions. Many sellers, however, only scratch the surface of what the dashboard offers, so we created some Amazon Seller Central tips to make it easy.
Whether you’re a newcomer or a seasoned seller, these Amazon Seller Central tips will walk you through the ins and outs of Amazon Seller Central. We’ll unlock its full capabilities to help you optimize your business, streamline operations, and boost sales.
Make sure you know all the latest tricks for ASC.
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Top Industry News
EU to Tighten Checks on Cheap Products From Sites like Temu and Shein (Reuters)
The European Union will increase customs checks on goods shipped directly by ecommerce retailers like Temu and Shein to EU consumers as it seeks to ensure fair competition and product safety, according to a draft of an official communication seen by Reuters on Monday The directive from the European Commission, expected to be published on Wednesday, will affect all non-EU ecommerce retailers although it specifically addresses the rapid growth of Temu, an online marketplace owned by Chinese ecommerce giant PDD Holdings, opens new tab, and Shein.
Temu, Shein and Amazon to be Liable in EU for ‘Unsafe’ or ‘Illegal’ Goods (Financial Times)
Customs reforms would oblige online platforms to provide data before goods arrive in the EU, allowing officials to better control and inspect packages. The proposal comes amid concerns about the rise in dangerous and counterfeit goods shipped from Asia directly to European customers.
Trump’s Tariffs to Eliminate ‘De Minimis Exemption’ on Small Packages (PYMNTS)
The additional tariffs imposed by President Donald Trump on China, Canada and Mexico reportedly include a provision that will eliminate a longstanding rule that allows small packages to enter the U.S. without paying a tariff. This rule — the “de minimis” exemption that applies to packages worth less than $800 — is commonly used by Chinese eCommerce retailers to sell goods at lower prices by shipping them directly to consumers in the U.S.
Supply Chain Analyst Says eCommerce May be Worst Hit by US Tariffs (Yahoo!)
Chinese e-commerce giants like Temu and SHEIN, who have use this loophole to import goods into the U.S., could be the biggest hit. But even U.S. companies like Amazon could be affected.
Ecommerce Trends: Which Omnichannel and Fulfillment Options Young Shoppers Choose (Digital Commerce 360)
Which generations are powering that BOPIS growth? Ahead of the 2024 holidays, a PwC survey found that while 89% of Baby Boomers planned to use home delivery for their holiday shopping, 49% of Gen Z shoppers and 48% of Millennials expected to choose in-store pickup.
New Report Spotlights Growth of Grocery E-commerce (Store Brands)
More than 90% of grocery shoppers are visiting stores and using online tools to complete their weekly shopping trips, according to a new report from FMI—The Food Industry Association and NielsenIQ.
UPS to Cut its Amazon Business by More Than 50%. Here’s Why (Morning Star)
UPS announced that it would be cutting its business with Amazon, its largest customer, by more than 50% by the second half of 2026, to focus on smaller, more profitable clients, rather than on simply increasing volume. Amazon accounted for 11.8% of UPS’s total revenue for the year, or about $10.7B.
Amazon Sellers Report Rising Concerns Over Fraudulent Returns (Forbes)
Independent sellers on Amazon’s marketplace are reporting an increase in fraudulent returns that they say is cutting into already thin profit margins and creating operational challenges. The issue highlights growing tensions between Amazon’s customer-centric policies and seller protections, particularly as competition intensifies from low-cost Chinese entrants.
Until next time,
Rachel Andrea Go
Marketing Director, MyFBAPrep