FBA vs FBM: Which Is Better? | Helium 10 (2024)

FAQs

FBA vs FBM: Which Is Better? | Helium 10? ›

Well, FBA is better for high volume, higher margin products where sellers don't want to handle storing and shipping products. FBM is better for smaller scale, small margin products or one-off products where the seller doesn't mind storing and shipping products.

With FBA, the perks are great but come with a host of fees. FBM gives merchants greater control and predictability over their inventory and fulfillment operations. Sellers with expertise in logistics and efficient operations can improve their overall margins.

Amazon Buy Box Eligibility Factor 3: Fulfillment Method

This change is a major shift in the Amazon buy box algorithm for 2022. Amazon no longer favors FBA over FBM for the buy box.

Amazon FBA is still a worthwhile venture in 2024 since 89% of sellers were profitable in 2022. Also, 55% of small and midsized Amazon businesses recorded profit margins greater than 15%. All these numbers point to one thing: Amazon sellers are still finding ways to generate profit despite steep competition.

1. Greater Process Control. If a seller uses Amazon FBM, then it can have greater control over the fulfillment process. Having greater control over the whole process helps online merchants to go above and beyond for their customers and create a superior brand image in the marketplace.

Pros of selling on Amazon

If you use FBA, Amazon takes care of logistics: If you use Amazon's FBA program, you will send your inventory to Amazon's fulfillment centers, and they will handle the storage, order fulfillment, and even customer service for you.

Leveraging the power of Amazon FBA can allow you to get much more out of your online business sales, but only if you do it correctly and have profitable products. There are several ways to sell on Amazon, and no two people will arrive at the same decision for the same reason.

Under "Listing Details" you will find the "Fulfilled By" field. Click on the dropdown to select either FBA or FBM. Now simply click "Save & Publish" and you're all done!

You can do both FBM and FBA on the same ASIN. On your FBM listing, select "Add another condition" and set it up as FBA. This will create a new FBA listing for the same ASIN with a new SKU.

What percentage of FBM sales does Amazon take? Depending on the product type that you sell, the Amazon share is varied. This fee range from 6% to 45% of each product's selling price. But on average, sellers are paying about 15%.

Is FBA still profitable in 2024? ›

Yes, Amazon FBA is still profitable in 2024, as evidenced by the increasing revenue and high seller participation. However, success requires effort and investment.

You can create an Amazon seller account, start hunting for products, and sell without an LLC. However, forming an LLC can be one of the best decisions you can make for your Amazon business, as it offers several advantages and protections that can benefit your business in the long run.

So, just how much do you need to start selling on Amazon? And based on our breakdown of costs and fees above, sellers can spend between $2,790 and $3,940 (assuming required costs plus $650 recommended costs and $500 extra costs) to start a private label business using Amazon FBA.

You will have more control over your inventory in the process as well. With FBM, you will not incur any unexpected costs or the pesky FBA fees that would otherwise eat into your margins. You won't even have to pay long-term storage fees or other related charges since you are not using Amazon's fulfillment centers.

With FBM, sellers save on storage fees and other charges associated with using Amazon's fulfillment centers. This cost-effectiveness is particularly relevant for sellers with high-volume, lightweight, or oversized products that may incur higher storage and handling fees within Amazon's FBA structure.

How Much Does Amazon FBM cost? Here's the nitty-gritty and you might be pleasantly surprised. As a Pro FBM Amazon seller, the subscription fee is $39.99 per month. If you are not a pro seller, but an individual seller, there is no subscription fee, but you will incur a $0.99 fee for every unit you sell.

An Amazon Seller can sell products through both FBA and FBM but not for the same product in the same country at the same time. 2. In case your FBA stock runs out in the Amazon warehouse, then you can switch to FBM and fulfill orders.

How much does Amazon FBM cost? Amazon FBM costs will vary for each business. In general, FBM costs include: A monthly subscription fee to sell on Amazon (either the Individual plan at $0.99 per item sold, or the Professional plan at $39.99 per month)