Amazon FBM vs. FBA: Why Fulfilled by Merchant is gaining importance again in 2025

Introduction: Fulfillment is more than just shipping

In the dynamic world of e-commerce, sellers on Amazon are repeatedly faced with a crucial question: FBA or FBM? While Fulfilled by Amazon (FBA) was long considered the gold standard, experienced FBM (Fulfilled by Merchant) — i.e. self-settlement by the retailer — is currently a strong comeback. But why is that? And what advantages does the FBM model offer — particularly with regard to Return rate and the sale of private label products?

What is FBM? — Definition and differences from FBA

Amazon FBM means that as a retailer, you organize the entire shipping process yourself. This includes warehousing, packaging, shipping and customer service. In contrast, at Amazon FBA, the marketplace performs these tasks for a fee.

An overview of the most important differences:

Benefits of FBM in 2025

At a time when shipping costs are rising and margins are shrinking, FBM offers new opportunities:

1. Lower return rate through personal control

An often underestimated factor in e-commerce is Return rate. Retailers who control shipping themselves via FBM often report a lower return rate. Why

• You have influence on packaging quality.
• You can design individual return processes.
• You can identify defective goods directly in the warehouse and avoid incorrect shipments.

Google tip: Optimizing your product packaging and description has a direct effect on the return rate — you have a better grip on both at FBM.

2. More flexibility for private label products

private label products are a growing segment on Amazon. The big advantage of FBM: You retain full control over branding, shipping materials and customer contact — crucial for building a strong brand.

Key points:

• You can add personalized inserts.
• You get direct feedback from your customers.
• You strengthen trust in your own brand.

3. Lower overall costs for specific product groups

FBM is often more cost-effective than FBA, especially when it comes to bulky, heavy or slow-turning items. You don't pay any long-term storage fees and are free to choose your shipping service provider.

Tip: Calculate exactly what shipping quantity FBA or FBM pays off — especially for niche products or individually packaged private label products.

FBM challenges — and how to overcome them

Of course, FBM is not without challenges:

• You need a functioning logistics structure.
• You must respond quickly to customer inquiries.
• You must make your return processes legally secure.

But: With the right fulfillment partner or an automated system, these hurdles can be overcome efficiently.

Best practices for successful FBM sales

1. Use multi-channel fulfillment

FBM not only allows you to sell on Amazon, but also on your own online shop or other marketplaces — with a central storage and shipping solution.

2. Optimize your product pages

Good product images, meaningful titles and bullet points lower Return rate and increase conversion — regardless of the shipping model.

3. Focus on customer loyalty

Especially with private label products Customer loyalty is crucial. With FBM, you have direct contact with your customers — use it for follow-ups, personalized packaging and targeted email campaigns.

FBM is more than just an alternative

Whether you choose FBA or FBM depends on your strategy, products, and resources. But one thing is clear: FBM is no longer an emergency solution in 2025, but a conscious decision for control, brand and flexibility.

In particular, retailers who are on private label products Set and a low Return rate should seriously consider FBM.

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