Want more control over your online orders? Amazon Fulfillment by Merchant (FBM) might be the perfect model for you in 2025. With rising fulfilment costs and tighter margins, Amazon FBA vs FBM comparison helps you decide which model fits your goals. Fulfillment by Merchant (FBM) gives sellers more flexibility—especially for those with their own storage or 3PL partner.
In this blog, you’ll learn exactly how Amazon FBM works, how it compares to FBA, its pros and cons, and how to set it up successfully in 2025.
What is Amazon FBM in 2025?
Amazon Fulfilled by Merchant (FBM) is when you, the seller, list your products on Amazon—but instead of Amazon warehousing and shipping the items (like FBA), you handle the packing, shipping, and customer service.
Whether you’re shipping from your garage or through a multi-channel fulfilment service like Kun Fulfilment, you remain fully responsible for logistics.
FBM vs FBA: What’s the Difference?
Here’s a quick side-by-side comparison to help you understand both fulfilment methods in 2025:
| Feature | Amazon FBM | Amazon FBA |
|---|---|---|
| Storage | Handled by seller or 3PL | Stored in Amazon’s warehouses |
| Shipping | Seller ships directly | Amazon handles shipping |
| Prime Eligibility | Not by default (unless SFP) | Automatically Prime-eligible |
| Fees | Lower fulfilment fees | Higher fees for storage + FBA |
| Control | Full control of inventory & returns | Limited control |
| Branding | You can use custom packaging | Amazon-branded packaging |
| Returns Handling | You manage it | Amazon manages it |
See detailed FBA fulfilment services here
How Amazon FBM Works (Step-by-Step)
Here’s a simplified flow of how Fulfillment by Merchant works in 2025:
- You list products on Amazon.
You create product listings just like any Amazon seller. - Customer places an order.
The buyer checks out via Amazon’s marketplace. - You receive the order notification.
Amazon notifies you via Seller Central. - You pack and ship the product.
You must ship it within the time you’ve promised, either in-house or via a UK-based fulfilment centre like Kun Fulfilment. - You provide tracking details.
Amazon expects tracking numbers uploaded promptly. - You handle customer service and returns.
FBM sellers are responsible for communication, replacements, and returns.
Why Choose FBM in 2025?
With Amazon tightening storage policies and charging higher long-term FBA fees, FBM makes sense for many sellers in 2025. Here’s why FBM is gaining popularity:
- Better for oversized or heavy products
- Ideal for slower-moving or seasonal inventory
- You avoid Amazon’s peak season surcharges
- Gives you more packaging freedom and branding control
- Works great if you already use a 3PL like Kun Fulfilment
Pros and Cons of Amazon FBM
| Pros | Cons |
|---|---|
| Lower fulfilment costs | No automatic Prime badge |
| Full control over shipping & packaging | You must handle shipping on time |
| More branding opportunities | More responsibility for returns/customer support |
| Flexibility with product handling | Lower Buy Box win rate (in some cases) |
FBM with a 3PL Partner in 2025
If you’re scaling, managing FBM alone can be overwhelming. That’s where third-party logistics (3PL) partners come in.
A reliable 3PL fulfilment partner in the UK like Kun Fulfilment can:
- Store and manage your inventory
- Pick, pack, and ship daily Amazon orders
- Integrate with your Amazon account
- Provide branded packaging
- Handle returns if needed
Using a 3PL gives you all the control and cost-effectiveness of FBM—without the stress of doing it in-house.
Tips for Success with FBM in 2025
- Set realistic handling times
Don’t overpromise shipping speed. - Use trackable shipping methods
Amazon penalizes late or untrackable shipments. - Offer great customer support
FBM sellers are rated by customers—bad reviews hurt. - Use reliable 3PLs
Outsource your FBM to Kun Fulfilment and avoid missed shipments or delays.. - Keep an eye on your metrics
FBM sellers need to maintain good Order Defect Rate (ODR), cancellation rate, and late shipment rate.
Final Thoughts
Amazon FBM in 2025 is a powerful model for brands who want control, flexibility, and lower costs—especially if you partner with a fulfilment expert. Whether you’re selling 10 or 10,000 units per month, FBM gives you room to scale profitably, your way.
If you’re looking to start FBM without managing it alone, Kun Fulfilment’s Amazon Order Fulfilment services can help you store, pick, pack, and ship—while you focus on growing your brand.
