Choosing between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) is one of the biggest decisions Amazon sellers face. Both models have pros and cons, but which one is is amazon fba worth it 2025?
In this in-depth guide, we’ll compare FBA vs. FBM in terms of:
✅ Costs & Fees
✅ Profit Margins
✅ Scalability
✅ Best Use Cases
By the end, you’ll know which fulfillment method maximizes your earnings based on your business model.
FBA vs. FBM: Key Differences
| Feature | FBA (Fulfillment by Amazon) | FBM (Fulfillment by Merchant) |
| Fulfillment | Amazon stores, packs & ships | You handle storage & shipping |
| Prime Eligibility | ✅ Yes | ❌ No (unless Seller-Fulfilled Prime) |
| Buy Box Priority | Higher chance | Lower chance (unless competitive pricing) |
| Shipping Speed | Fast (1-2 days with Prime) | Depends on your logistics |
| Customer Service | Amazon handles returns & issues | You manage customer support |
| Fees | Higher (storage, fulfillment) | Lower (but shipping costs vary) |
| Best For | High-volume sellers, beginners | Low-margin products, large/heavy items |
FBA vs. FBM: Which Makes More Money?
1. Cost Comparison (2025 Fees)
Amazon FBA Costs
- Fulfillment Fees (
- 3.22−
- 3.22−6.40 per unit, based on size/weight)
- Monthly Storage Fees (
- 0.87−
- 0.87−2.40 per cubic foot)
- Long-Term Storage Fees (After 271 days,
- 6.90percubicfootor
- 6.90percubicfootor0.15 per unit)
- Additional Fees (Returns processing, removal orders, prep services)
💰 Example FBA Cost Breakdown (for a $30 product):
- Amazon Fee: $5.50
- Storage Cost: $0.50
- Total FBA Cost: ~$6.00
Amazon FBM Costs
- Shipping Costs (~
- 3−
- 3−8, depending on carrier & weight)
- Packaging Materials (~
- 0.50−
- 0.50−1.50 per order)
- Labor & Time (Packing, customer service)
💰 Example FBM Cost Breakdown (for a $30 product):
- Shipping: $4.50
- Packaging: $1.00
- Total FBM Cost: ~$5.50
Winner?
- FBM is cheaper per order (if you ship efficiently).
- FBA costs more but saves time & boosts sales.
2. Profit Margins: FBA vs. FBM
Since FBA has higher fees, you’d think FBM is always more profitable—but sales volume matters.
📊 Profit Scenario (Selling 500 Units/Month)
| Model | Price | Cost Per Unit | Profit Per Unit | Monthly Profit |
| FBA | $30 | $6.00 | $24.00 | $12,000 |
| FBM | $30 | $5.50 | $24.50 | $12,250 |
At first glance, FBM wins… but wait!
The Prime Effect (FBA Sells More)
- FBA products get 30-50% more sales due to Prime eligibility.
- If FBA sells 700 units/month vs. FBM’s 500, the math changes:
| Model | Units Sold | Profit Per Unit | Total Profit |
| FBA | 700 | $24.00 | $16,800 |
| FBM | 500 | $24.50 | $12,250 |
Now FBA is more profitable!
3. Which Products Work Best for FBA vs. FBM?
✅ Best for FBA:
- Small, lightweight items (lower fulfillment fees)
- Fast-selling products (avoid long-term storage fees)
- Competitive niches (where Buy Box & Prime matter)
✅ Best for FBM:
- Oversized/heavy items (high FBA fees make it unprofitable)
- Low-margin products (where every dollar counts)
- Custom/handmade goods (better control over packaging)
Hybrid Approach: Using Both FBA & FBM
Many top sellers combine FBA and FBM for maximum flexibility:
- Use FBA for bestsellers (to leverage Prime) amazon arbitrage software.
- Use FBM for slow-moving or large items (to cut costs).
- Seller-Fulfilled Prime (SFP) – Get Prime benefits while self-fulfilling (requires fast shipping).
Final Verdict: FBA or FBM in 2025?
| Factor | FBA Wins If… | FBM Wins If… |
| Profitability | Selling high volume with Prime boost | Selling low-margin or oversized items |
| Convenience | You want Amazon to handle logistics | You control shipping & branding |
| Scalability | You can absorb fees for more sales | You keep costs lean |
| Competitiveness | Need Buy Box dominance | Competing on price alone |
When to Choose FBA:
✔ You sell small, fast-moving products.
✔ You want Prime visibility & higher conversions.
✔ You’re willing to pay fees for automation.
When to Choose FBM:
✔ You sell bulky, low-margin, or custom products.
✔ You have your own warehouse & shipping setup.
✔ You want more control over customer experience.
Conclusion: Which Makes More Money?
- FBA → Better for high-volume sellers who benefit from Prime.
- FBM → Better for cost-conscious sellers with large or slow-moving inventory.
- Hybrid → The best of both worlds for scalability.
Which model works best for your business? Let us know in the comments!
