A lot of brands feel more comfortable starting with FBM (Fulfilled by Merchant) because it feels simpler. You already have a shipping process in place, you’re shipping orders on other platforms, and it feels easier to just ship Amazon orders the same way.
But what most brands don’t realize is that the difference between FBA vs FBM isn’t just about ease or cost — it can be the difference between barely getting traction and doubling your sales.
After helping hundreds of brands get started on Amazon, I can tell you that fulfillment choice affects buy box eligibility, conversion rate, and visibility in search — which directly impacts sales velocity.
In this post, I’ll break down:
- What FBA and FBM actually mean
- Why FBA usually sells more
- When FBM is the better option
- Common pitfalls (especially with FBA inventory and fees)
- A quick framework to decide what’s right for your brand
What’s the Difference Between FBA and FBM?
What FBA Means (Fulfilled by Amazon)
With FBA, you ship inventory into Amazon’s warehouses, and Amazon handles:
- storing your inventory
- picking and packing
- shipping to customers
- returns + customer service
This is why FBA listings usually get the Prime badge, and Prime eligibility is a big deal.
What FBM Means (Fulfilled by Merchant)
With FBM, your team (or your 3PL) stores and ships orders directly to customers. Amazon still gives you the orders — but you’re responsible for the shipping, delivery speed, and order metrics.
The Biggest Advantage of FBA (And Why It Usually Sells More)
The biggest benefit of FBA is pretty simple:
FBA listings typically sell more — often a lot more.
In our experience, when brands switch from FBM to FBA, it’s common to see sales double or triple within 60–90 days, especially for products priced under about $40.
Here’s why.
The Prime Badge Builds Instant Trust
Prime buyers often filter for Prime-only results. Even when they don’t, Amazon tends to rank Prime listings higher because fast shipping is one of the ranking factors.
So Prime doesn’t just help conversions — it can help you show up more often.
FBA Helps You Win the Buy Box (Even if You’re the Only Seller)
A lot of brands don’t realize this, but even if you’re the only seller of your products, you still have to “win the buy box.”
If you’re not winning it:
- customers don’t see a normal “Add to Cart” button
- the price looks small or hidden
- conversion rate drops dramatically
- you often can’t run Sponsored Product ads
Here are two real examples — one on the product page and one on the search results page — of what this looks like when you’re not winning the buy box.
Above shows an example of a listing that isn’t winning the buybox.
Customers don’t get a normal Add to Cart button — and that extra friction kills conversion.
Below you can see that even on the search results page, the listing looks weird when you’re not winning the buy box — and it can make people skip right past you. Notice the other listings all have the “add to cart” button but this one only has “See options.”
Real Example: Switching FBM to FBA Doubled Sales
We worked with a supplements brand that had been selling on Amazon for years. They were doing $70,000/month on FBM and had a great product — but growth stalled as competitors entered the market.
We recommended switching to FBA, but they hesitated because the product came in glass bottles and they were worried about breakage (which is a valid concern).
So instead of relying on Amazon to pack it correctly, we had them add the same protective packaging they already used for direct-to-consumer orders — before sending units into FBA.
They started with their best-selling SKU.
Within five months, their sales doubled from $70,000/month to $140,000/month — just by switching fulfillment.
That’s how big the gap can be between FBA and FBM.
When FBA Is Almost Required
If your product is priced under about $40, being in FBA is often required just to compete.
At that price point:
- customers expect Prime shipping
- competitors are almost always FBA
- your listing usually ranks and converts worse without Prime
The lower the price, the more critical Prime becomes.
Important update (Spring 2026): Amazon barcode requirements for FBA
One important operational update to be aware of: starting March 31, 2026, Amazon is changing its barcode requirements for FBA shipments.
If you want to use manufacturer barcodes (like UPC/EAN) without applying Amazon barcode labels, you’ll need to be enrolled in Amazon Brand Registry as a brand representative (which typically requires a trademark).
If you’re not Brand Registry brand-representative eligible, Amazon will require you to use Amazon barcodes (FNSKU labels) for FBA — even if your product already has a UPC printed on it.
Here’s what this looks like in real life (above) — low-priced products are almost always Prime, because Prime is a big part of what gets the click.
When FBM Makes More Sense (And Why)
Even though FBA is usually the better option, there are specific situations where FBM is absolutely the right move.
Large, Heavy, or High-Ticket Products
If your item is very large or heavy (or just expensive to ship), FBA fees can crush your margins — and you may not see the same conversion lift from Prime anyway.
High-ticket products (often $200+) can often sell FBM without much difference in sales volume because:
- customers aren’t buying it on impulse
- they don’t expect 1–2 day Prime shipping
- the “Prime advantage” is smaller
Examples we’ve seen work well FBM:
- boat accessories delivered on pallets
- artisan sinks
- air conditioners
Perishable, Meltable, or Custom Products
Some categories either don’t work well in FBA or can’t be fulfilled by Amazon:
- perishable items (fresh fruit, gift baskets, etc.)
- meltable products like chocolate during summer months
- customized products (engraved, printed, made-to-order)
Brands With Huge Catalogs (Apparel, Parts, Thousands of SKUs)
For large catalogs, FBA becomes hard to manage because you have to forecast inventory and keep stock in multiple locations.
For apparel brands (or brands with thousands of SKUs), a common approach is:
- keep best-sellers / evergreen listings in FBA
- list the rest FBM
The Biggest Mistakes With FBA
Not Protecting Fragile Products
If your product is fragile (especially glass), Amazon packing can be inconsistent.
The best solution is usually to pack it exactly like you would for a customer and send it into FBA already packed.
Sending Too Much Inventory
This is the biggest FBA mistake I see.
If inventory sits too long, the fees can get brutal. After about 6 months, long-term storage fees kick in and can rise over time.
The other issue: it’s often cheap to send inventory into Amazon… and expensive to get it back.
We’ve heard of:
- a brand paying $50,000 in removal fees due to compliance issues forcing inventory back out
- another paying $100,000 in removal fees after a launch flopped
So yes, FBA is powerful — but you need to manage inventory carefully.
The Biggest Risks With FBM
FBM avoids Amazon storage fees, but it requires you to run fulfillment extremely consistently.
If Amazon ships an order late, Amazon takes the blame.
If you ship an order late (or UPS delivers late), Amazon often counts it against you and it can hurt:
- your account metrics
- your buy box percentage
- your sales velocity
- and in extreme cases, even your ability to sell FBM
How to Reduce FBM Risk
If you do FBM, one of the best protections is using Buy Shipping through Amazon, which can reduce how often Amazon blames you if the carrier delivers late.
Also, your shipping settings matter a lot:
- handling time
- shipping speed
- delivery promises
The faster you can consistently deliver, the better your conversion rate tends to be.
The “Best of Both Worlds” Approach (FBA + FBM)
For a lot of brands, the best answer isn’t choosing one — it’s using both.
Common hybrid strategies:
- Best sellers / single packs in FBA, slower SKUs in FBM
- Single packs in FBA, multipacks in FBM (loyal customers buy more, and you save fees)
- FBM as a backup if FBA inventory runs out or you hit restock limits
This is what we do for most brands we work with — we try to always have FBM ready as a fallback.
A Quick Framework to Choose FBA vs FBM
1) Calculate the costs
Use Amazon’s revenue calculator to estimate:
- FBA fees (fulfillment + storage)
- compare that to your own fulfillment costs (warehouse/3PL + shipping + labor)
A key factor is your FBA fulfillment fee vs your cost to ship the product yourself. For many products, FBA shipping is similar or cheaper — but this is not true for very large items.
2) Look at product type
FBA is usually better unless the product is:
- oversized
- fragile (unless you pre-pack)
- perishable
- meltable
- customized
3) Look at price point + sales velocity
- Under ~$40: lean strongly toward FBA
- High ticket (often $200+): FBM is often fine
- Slow-moving niche items: FBM is usually safer
4) Look at catalog size and inventory complexity
- Small catalog: easier to run FBA
- Huge catalog: often best sellers in FBA, rest FBM
5) Look at operational bandwidth
If your logistics team is lean, FBA simplifies everything. If you already have reliable fulfillment systems, FBM may save costs and be less of a transition then using FBA.
Conclusion
For most product brands, if you can make FBA work, it’s usually going to be the better option — mainly because it’s tied to Prime eligibility, stronger conversion rates, and better visibility.
But FBM absolutely has its place, especially for oversized or high-ticket products, perishable or meltable items, custom products, and huge catalogs where FBA is hard to manage.
And in a lot of cases, the smartest strategy is a hybrid approach — with best sellers in FBA and FBM as a backup.
If you’re having a hard time figuring out which model is best for your brand, feel free to reach out to us at customerservice@fivestarcommerce.com or comment on our YouTube video above.
FAQ
Q: Which sells more — FBA or FBM?
For most brands, FBA sells more, often significantly more, because Prime eligibility improves visibility, buy box performance, and conversion rate. Five Star Commerce has had brands that were selling FBM and then switched to FBA and they usually 2x-3x their sales after 60-180 days with that change alone.
Q: Do I need FBA to win the buy box?
Not always, but for many new brands it’s harder to win the buy box with FBM — even if you’re the only seller.
Q: When is FBM the better choice?
FBM is often better for oversized or heavy products, high-ticket items, perishable/meltable products, customized products, or very large catalogs that are hard to manage in FBA.
Q: What’s the biggest mistake brands make with FBA?
Sending in too much inventory and getting hit with massive storage fees or removal fees if the inventory doesn’t sell or the listing runs into compliance issues.
Q: How do I reduce risk if I’m doing FBM?
Make sure your shipping settings and handling time are configured correctly, and consider using Buy Shipping through Amazon to protect your account metrics when carriers deliver late.