When you sell on Amazon, how your products get to customers is just as important as the products themselves. Amazon has three main ways to fulfill orders: FBA (Fulfilled by Amazon), FBM (Fulfilled by Merchant), and SFP (Seller Fulfilled Prime). Each one is made for a different type of business.
We'll talk about how each method works, what its pros and cons are, and how to choose the best one for your business growth in this article.
What is FBA (Fulfilled by Amazon)?
Amazon's full-service fulfillment service is called FBA. Sellers send their goods to Amazon's warehouses, and Amazon handles everything else, including storage, picking, packing, shipping, customer service, and returns. FBA products automatically get Prime status, which makes them more visible and trustworthy.
High-volume sellers who want to grow without having to handle logistics themselves like FBA. But there are costs for storage and fulfillment, especially for large or slow-moving items.
What is FBM (Fulfilled by Merchant)?
FBM lets sellers store, pack, and ship orders straight to customers. After you list your item on Amazon, it's up to you to do the rest.
This model lets sellers completely control shipping speed, inventory, branding, and packaging. Businesses that often prefer it:
- Sell things that are made to order or customized
- Have their own storage space
- Want to lower FBA fees
FBM listings don't have the Prime badge, which can hurt conversion rates, especially in categories where there is a lot of competition.
What is SFP (Seller Fulfilled Prime)?
SFP is a compromise: the seller takes care of shipping but stays Prime eligible as long as they meet Amazon's high-performance standards.
SFP gives you:
- Complete control over operations
- The Prime badge to make it easier to see
- Amazon warehouses don't have any storage.
But it's not easy to get qualified. You have to ship quickly, keep the number of defects low, and always meet Amazon's strict standards. SFP is great for sellers who have been around for a while and have good logistics systems.
FBA vs FBM vs SFP: Key Differences at a Glance
| Feature | FBA | FBM | SFP |
|---|---|---|---|
| Fulfilled by | Amazon | Seller | Seller |
| Prime Eligibility | Yes | No | Yes |
| Storage Responsibility | Amazon | Seller | Seller |
| Shipping Responsibility | Amazon | Seller | Seller |
| Customer Service & Returns | Amazon | Seller | Seller |
| Setup Complexity | Low | Low | High |
| Best For | Scaling, automation | Custom, niche, high-margin | Advanced sellers with logistics in place |
Pros & Cons: Choosing the Right Fulfillment Model
There are pros and cons to each model. Here are some things to think about:
FBA Pros: Easy logistics, access to Prime, and customers trust you.
FBA Cons: More fees, less control, and limits on storage.
FBM Pros: You have full control, it's cheaper, and it's better for custom products.
FBM drawbacks: no Prime badge, and slower delivery could hurt sales.
SFP Pros: You get the best of both worlds with Control + Prime.
SFP Cons: It's hard to qualify, there are high expectations, and the logistics are complicated.
How to Choose the Right Fulfillment Strategy
There isn't a single model that works for everyone. The best one for you will depend on the type of product you sell, how many you can handle, and your growth goals.
Pick FBA if:
You want to grow quickly
You don't have the infrastructure for fulfillment.
You're selling things that people buy quickly.
Pick FBM if:
You sell things that are made to order, are fragile, or are too big.
FBA fees aren't worth it for your margins.
You already have a plan for logistics.
Pick SFP if:
You meet Amazon's strict performance standards.
You want to get Prime exposure but keep fulfillment in-house.
You want to put money into systems that ship quickly.
A hybrid model works best for many sellers: FBA for regular items and FBM for custom or large items.
Bonus: Can You Switch Between FBA, FBM, and SFP?
Yes. You can change listings in Seller Central. Businesses often switch as they grow, move into new markets, or change with the seasons.
To change:
- Click on the inventory tab
- Pick "Change to Fulfilled by Amazon" or "Change to Fulfilled by Merchant."
- Follow the instructions and change the shipping settings as needed.
You have to apply, go through a trial period, and keep meeting ongoing metrics for SFP.
Final Thoughts
Depending on how your business works, FBA, FBM, and SFP all have their own pros and cons. FBA takes care of logistics problems, FBM gives you control and flexibility, and SFP does both with strict rules.
To build a successful, scalable Amazon business, you need to know how to use these fulfillment methods. Choose wisely and change as you grow.
Frequently Asked Questions (FAQ)
Q: What is the difference between FBM and FBA on Amazon?
A: Fulfilled by Amazon (FBA) means that Amazon takes care of storage, shipping, and customer service. FBM stands for "Fulfilled by Merchant," which means that the seller handles all the logistics on their own. FBA lets sellers be Prime eligible, but FBM gives sellers more control and often lower costs.
Q: Is SFP better for Prime sellers than FBA?
A: If you want the Prime badge but don't want to use Amazon's warehouses, SFP (Seller Fulfilled Prime) might be better. But it's harder to get and keep. FBA is less hands-on, but SFP is great for sellers who are good at logistics.
Q: Is it possible to switch between FBA and FBM on Amazon?
A: Yes, it's easy to switch between different ways of fulfilling orders in Amazon Seller Central. Many sellers use a mix of FBA and FBM, depending on the size, margin, and time of year.
Q: Does FBM change my chances of winning the Buy Box?
A: FBM listings can win the Buy Box, especially if they have fast shipping and prices that are competitive. But FBA and SFP listings usually have an edge because they are Prime eligible and Amazon's fulfillment trust.
Q: What is the best way for beginners to use Amazon fulfillment?
A: FBA is usually the best choice for new sellers because it makes things easier. Amazon takes care of shipping and customer service, so new sellers can focus on finding products, setting prices, and marketing them.
