Want to launch or scale your Amazon business in 2025 but can’t decide between Fulfilled by Amazon (FBA) and Fulfilled by Merchant (FBM)?
This comprehensive guide will break down everything you need to know about Amazon FBM vs FBA, including:
- How both fulfilment models work
- Pros and cons of each
- Costs involved
- Ideal use cases
- FBM vs FBA comparison table
- Real-world scenarios for sellers in 2025
Let’s dive in.
What Is Amazon FBA?
Fulfilled by Amazon (FBA) means you send your products to Amazon’s warehouses, and they take care of storage, picking, packing, shipping, and even customer service and returns.
Key Features of FBA:
- Amazon handles logistics end-to-end
- Prime badge eligible
- Faster shipping (Next Day / Same Day in many regions)
- Automatic customer service
What Is Amazon FBM?
Fulfilled by Merchant (FBM) means you, the seller, handle all aspects of order fulfilment, — from storage to shipping and customer service. This can be done in-house or outsourced to a 3PL (third-party logistics provider) like Kun Fulfilment.
Key Features of FBM:
- Seller is in control of storage and shipping
- Not automatically Prime-eligible
- Useful for bulky, slow-moving, or custom products
- Lower storage fees and flexible shipping options
FBA vs FBM Comparison Table (2025)
| Feature | Amazon FBA | Amazon FBM |
|---|---|---|
| Fulfilment Responsibility | Amazon | Seller (or 3PL) |
| Prime Eligibility | Yes (automatically) | No (unless SFP) |
| Storage Fees | High (especially long-term) | Depends on your setup / 3PL rates |
| Shipping Control | Limited | Full |
| Customer Service | Amazon handles | You handle |
| Returns Management | Amazon handles | You handle |
| Brand Control | Less (Amazon branded packaging) | More (your packaging, inserts, etc.) |
| Best for | Fast-selling, small items | Custom, bulky, or slower-moving items |
👉 Want to explore fulfilment solutions that give you full control over branding and delivery? Multi-channel Fulfilment Services
Costs Comparison: FBM vs FBA (2025)
| Cost Category | Amazon FBA Example | Amazon FBM Example (via Kun Fulfilment) |
|---|---|---|
| Storage (Monthly) | £20 – £30 per cubic meter | £15 – £25 per cubic meter (avg. 3PL UK) |
| Pick & Pack Fees | £1.50 – £3.50 per item | £0.75 – £1.80 per item (Kun Fulfilment) |
| Returns Handling | Free to buyer, cost to seller | Fully controlled by merchant |
| Shipping Fees | Amazon-negotiated rates | Custom courier agreements (Royal Mail, DPD, etc.) |
| Customer Support | Included | Self-managed or outsourced |
Kun Fulfilment offers transparent pricing for pick, pack, and storage — compare our UK fulfilment pricing to typical FBA costs.
When to Choose FBA in 2025
FBA is ideal if:
- Your products are small, fast-moving, and have high turnover
- You want to benefit from the Prime badge
- You don’t want to handle logistics yourself
- You’re focused on scaling globally through Amazon
When FBM Makes More Sense in 2025
FBM is better when:
- You sell bulky, fragile, or customised products
- You want full control over packaging and shipping
- You work with a 3PL like Kun Fulfilment for efficient storage & delivery
- Your margins are tight and FBA fees eat your profits
Real Seller Scenario (2025)
Let’s say you sell custom fitness kits weighing 3kg each. With FBA, long-term storage and return costs pile up fast.
But with FBM via a UK-based 3PL:
- You get lower warehousing costs
- Can use branded packaging
- Have more control on delivery times (e.g., 2-day tracked or eco-friendly shipping)
In this case, FBM wins.
Final Takeaway: Which Is Right for You?
There’s no one-size-fits-all. Your decision between Amazon FBA vs FBM in 2025 should depend on:
- Product type & size
- Sales volume
- Branding preferences
- Logistics capabilities
- Cost control goals
If you want freedom, flexibility, and better margins — FBM with the right 3PL is your game.
But if speed and automation matter more, FBA is still a great route.
Want help with Amazon FBM?
At Kun Fulfilment, we help brands grow using Amazon FBM without the headache.
From storage and pick-pack to shipping and returns — we handle it all.
