FBA vs FBM in 2025 – Which is Right for Your Amazon Business?

When launching or scaling your Amazon business, one of the most critical decisions you’ll make is choosing between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). This choice impacts your profitability, customer experience, operational complexity, and long-term growth. 

In 2025, with evolving buyer expectations and tighter Amazon policies, it’s more important than ever to make an informed decision. Let’s break down the pros, cons, and real-world suitability of both fulfillment models. 

What is FBA? 

Fulfillment by Amazon (FBA) means Amazon stores, picks, packs, ships, and handles customer service and returns for your products. 

Key Features: 

• Products are Prime-eligible 
• Amazon handles all logistics 
• Access to Amazon's trusted customer service 
• Better chances of winning the Buy Box 

Pros: 

• Scalability: Focus on growth while Amazon manages logistics. 
• Faster delivery: Prime shipping boosts customer satisfaction. 
• Higher conversions: Shoppers prefer Prime listings. 

Cons: 

• FBA fees: Storage and fulfillment fees can reduce margins. 
• Inventory limits: Amazon has introduced stricter storage limits in 2025. 
• Less control: You're subject to Amazon’s warehouse policies and processing delays. 

What is FBM? 
Fulfillment by Merchant (FBM) means you, the seller, handle storage, packaging, shipping, and customer service. 

Key Features: 

• You’re in full control of logistics and returns. 
• Suitable for custom, oversized, or lower-turnover items. 
• No FBA fees, but other costs apply (shipping, warehousing, staff, etc.). 

Pros: 

• Greater control: Manage your inventory, returns, and fulfillment your way. 
• Lower fees: Avoid FBA-related storage or fulfillment surcharges. 
• Better for niche sellers: Particularly useful for large or made-to-order items. 

Cons: 

• More work: You must handle all operations, or outsource to 3PLs. 
• No Prime badge (unless SFP): Which may affect visibility and trust. 
• Customer service burden: Managing returns and complaints falls on you. 

What’s Changed in 2025? 

• Increased FBA fees: Amazon introduced a tiered fee structure that penalizes overstocking. 
• Tighter inventory limits: Especially during Q4, Amazon restricts storage space for new or slow-moving products. 
• FBM advantage for oversized products: Due to higher FBA dimensional weight fees in 2025, many sellers have shifted oversized products to FBM. 

Which Fulfillment Method Should You Choose? 

Choose FBA if: 

• You’re scaling fast and need a hands-off logistics solution. 
• Your products are fast-moving and compact. 
• You want Prime visibility and higher conversion rates. 

Choose FBM if: 

• You want full control over fulfillment and returns. 
• You sell custom, oversized, or slow-moving products. 
• You have your own logistics infrastructure or use a reliable 3PL. 

Can You Use Both FBA and FBM? 

Absolutely. Many 7-figure sellers use a hybrid model: 

• FBA for fast-moving, high-conversion SKUs. 
• FBM for large, seasonal, or specialty items. 

This approach offers flexibility while optimizing costs and customer experience. 

Final Thoughts 

There’s no one-size-fits-all answer to FBA vs FBM. The right choice depends on your product type, margin structure, scalability goals, and operational capacity. 

As Amazon evolves in 2025, so should your fulfillment strategy. Tools like SentryKit can help you stay informed with alerts about changes in Amazon fees, storage limits, Buy Box status, and performance insights—so you’re always a step ahead, whether you use FBA, FBM, or both.