Every Amazon seller must decide: let Amazon fulfill orders (FBA), or handle fulfillment yourself or through a 3PL (FBM). This decision affects your fees, Buy Box eligibility, seller metrics, and cash flow. Here's the complete breakdown.
Amazon FBA Explained
With FBA, you send inventory to Amazon's fulfillment centers. Amazon stores your products, picks orders, packs them, and ships to customers. You also get Prime badge eligibility and Amazon handles customer service for fulfillment-related issues.
Amazon FBM Explained
With FBM (Fulfilled by Merchant), you (or your 3PL) handle storage, packing, and shipping. You're responsible for meeting Amazon's shipping speed requirements and handling customer service. You can still win the Buy Box on FBM — but typically need competitive pricing and fast shipping.
FBA vs FBM Cost Comparison
| Cost Factor | FBA | FBM + Delaware 3PL |
|---|---|---|
| Storage (per cubic foot) | $0.78–$2.40+ | ~$0.50–$1.20 |
| Pick & Pack | $3.22–$10.18/unit | $5.00/order |
| Buy Box Eligibility | Prime badge, strong | Possible with fast shipping |
| Sales Tax Savings | Varies by FC location | 0% (Delaware) |
When FBA Wins
- Prime badge is essential for your category (electronics, beauty, etc.)
- High-velocity products (many small orders per day)
- Your products meet FBA size and weight tiers efficiently
When FBM + Delaware 3PL Wins
- Oversized or heavy products with punishing FBA fees
- Multi-channel selling (Shopify + Amazon + Walmart)
- Seasonal products where FBA long-term storage fees are costly
- International sellers wanting one US inventory location
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