Fulfillment Options: Comparing FBA and FBM for Sellers Abroad

Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) are two primary fulfillment options for sellers abroad, each with distinct advantages and trade-offs.

FBA involves sending inventory to Amazon’s fulfillment centers, where Amazon handles storage, packing, shipping, and customer service. This option offers benefits such as:

• Automatic eligibility for Amazon Prime, which can boost sales and Buy Box win rates.
• Enhanced SEO and visibility on Amazon.
• Convenience for sellers who prefer a hands-off approach to logistics and customer service.
• Access to Amazon’s fast shipping network, often with 2-day Prime delivery.

However, FBA comes with higher fees based on storage, fulfillment, and product size/weight, which can reduce margins, especially for low-volume or slow-moving products.

FBM means sellers manage their own inventory, storage, shipping, and customer service, either directly or through third-party logistics (3PL). Key advantages include:

• Greater control over inventory and fulfillment operations.
• Potentially lower costs if sellers have efficient logistics.
• Flexibility to handle larger, custom, or slow-moving items better suited for FBM.
• Sellers can participate in Seller Fulfilled Prime (SFP) to gain Prime eligibility while maintaining control.

FBM sellers often achieve higher profit margins and can start selling faster since they avoid Amazon’s upfront inventory requirements. However, FBM listings may have less Buy Box advantage and lower search ranking compared to FBA.

Many sellers use a hybrid approach, leveraging FBA for fast-moving, standardized products and FBM for others, optimizing cost and control per product.

Choosing between FBA and FBM depends on your product type, volume, margin goals, and willingness to manage logistics. FBA suits sellers wanting convenience and Prime benefits, while FBM suits those seeking control and potentially higher margins.