FBA vs. FBM: When Each Model Makes Sense

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

Surprise: Although FBA sounds "expensive", in this example it is actually cheaper than shipping yourself! This is due to Amazon's shipping rates.

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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

Caution with FBM: You need consistently excellent metrics (Late Shipment Rate, Valid Tracking) to stay competitive. This requires professional processes.

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:

68%

Average Buy Box Rate FBA

41%

Average Buy Box Rate FBM

With the same price and comparable seller metrics

Exception: FBM sellers with "Seller Fulfilled Prime" achieve similar Buy Box rates to FBA sellers. However, this requires strict shipping speed requirements.

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

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