FBA or FBM? This decision can determine the success or failure of your Amazon business. In this deep dive, we analyse both models with concrete numbers and help you make the decision.
The Basics: FBA vs. FBM
FBA (Fulfillment by Amazon)
You send your products to Amazon. Amazon handles storage, packaging, shipping, customer service and returns.
FBM (Fulfillment by Merchant)
You store and ship yourself. You are responsible for the entire fulfilment process.
Cost Comparison: The Hard Numbers
Let's work through a concrete example: a product weighing 500g, selling price 29.99€
| Cost Item | FBA | FBM |
|---|---|---|
| Fulfillment Fee | 3,20€ | 0€ |
| Shipping Costs | incl. | ~4,50€ |
| Packaging | incl. | ~0,50€ |
| Storage Costs (monthly) | ~0,30€ | ~0,10€* |
| Labor Time (Pick & Pack) | 0€ | ~1,00€** |
| Total per Unit | ~3,50€ | ~6,10€ |
* With your own warehouse, without external storage
** Calculated at ~5 minutes per order at 12€/h
When FBA Is the Better Choice
✅ Choose FBA for:
- Small, lightweight products: FBA fees are weight-based and cheap for small products
- High volume: Scalability without your own infrastructure
- Prime relevance: The Prime badge is decisive for conversion
- Competitive categories: Buy Box advantage through FBA
- Seasonal peaks: Amazon can handle Q4 better than you can
When FBM Is the Better Choice
✅ Choose FBM for:
- Large, heavy products: FBA fees explode with oversize items
- Low margins: Every euro counts
- Special packaging needed: Fragile products, personalised packaging
- Existing logistics: You already have a warehouse and staff
- Niche products: Little competition = Prime less important
The Hybrid Strategy
Many successful sellers use both models in parallel:
Hybrid Model Example:
- FBA for: Top 20% of products (fast movers with good ROI)
- FBM for: Slow movers, oversize items, niche products
- FBM as backup: Keep selling when FBA is out of stock
Benefits of the Hybrid Model:
- Optimised costs per product type
- Less dependency on Amazon
- Backup in case of FBA problems
- Flexibility during seasonal fluctuations
Buy Box Impact
FBA has a clear Buy Box advantage. Our data shows:
With the same price and comparable seller metrics
Decision Matrix
Use this matrix for your decision:
| Factor | → FBA | → FBM |
|---|---|---|
| Product Size | Small/Standard | Oversize |
| Margin | > 25% | < 15% |
| Competition | High | Low |
| Volume | High | Low |
| Infrastructure | None | Available |
| Prime important? | Yes | No |
Conclusion
There is no universally "better" model. The right choice depends on your specific business:
- Calculate: Run the numbers on both models for your top products
- Test: Start with FBA for your core products
- Optimise: Move products between FBA/FBM based on performance
- Hybridise: Use both models for optimal results
FBA or FBM? Let us analyze it
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