The decision between Fulfilled by Amazon and Fulfilled by Merchant is one of the most important operational choices you will make as an Amazon seller. Both fulfilment models offer clear advantages and specific trade offs. For many sellers, the most effective solution is a hybrid approach that uses FBA for high volume, fast moving products and FBM for slower moving, oversized, or lower margin items.

Fulfilled by Amazon (FBA)
With FBA, Amazon stores your inventory in its fulfilment centres and manages picking, packing, shipping, customer service, and returns on your behalf. Your products automatically become Prime eligible, which can significantly improve visibility and conversion rates across most product categories. However, FBA also involves fulfilment fees for each unit shipped, monthly storage fees based on cubic footage, and long term storage fees for inventory held for more than 365 days. For products with strong sales velocity and favourable dimensions, these fees are often outweighed by the increased visibility and conversion benefits. For low volume, oversized, or lower margin products, however, storage costs can make FBA less cost effective.

Fulfilled by Merchant (FBM)
With FBM, you store your own inventory and fulfil orders yourself or through a third party logistics provider. This gives you greater control over the fulfilment process and eliminates FBA storage and fulfilment fees. However, you are responsible for meeting Amazon’s shipping performance standards, including maintaining a Late Shipment Rate below 4 percent, a Valid Tracking Rate above 95 percent, and a Pre Fulfilment Cancellation Rate below 2.5 percent. FBM is often the best choice for oversized products, low sales volume items, custom or made to order products, and businesses that already have an efficient logistics operation.

Seller Fulfilled Prime (SFP)
Seller Fulfilled Prime is a third option available to eligible high performing FBM sellers. It allows you to display the Prime badge on your FBM listings while fulfilling orders from your own warehouse. Qualification requires consistently meeting Amazon’s strict performance standards and complying with the requirements of the Seller Fulfilled Prime programme. Our consultation includes guidance on SFP eligibility and setup for sellers who qualify or are working towards qualification.