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Amazon FBA vs. FBM: What’s Best for New Sellers in 2025?

Joining the Amazon market in 2025 is more thrilling than ever. As global e-commerce keeps on flying high and Amazon possessing a whopping chunk of that pie, there is no denying the opportunity for new sellers. However, one very important choice that all new sellers are going to have to make soon is whether to utilize FBA (Fulfillment by Amazon) or FBM (Fulfillment by merchant). This will determine how you do business, grow, and become profitable.

At SwifSol, we assist new and upcoming Amazon sellers' critical choices with fact-based information and strategy-based advice. FBA or FBM, and what would be best for you in 2025—let's find out.

What Is Amazon FBA?
Fulfillment by Amazon (FBA) is when you ship your products to Amazon warehouses, and they handle storage, shipping, returns, and customer service.
Pros:
Prime Eligibility: Your items are eligible for Amazon Prime automatically, boosting visibility and conversions.

Hands-Off Fulfillment: Amazon takes care of all the work from packing to shipping and customer service.

Scalability: Great for sellers who need to scale quickly without any logistics hassle.

Cons:
Fees: FBA involves storage and fulfillment charges, which can eat into margins.

Less Control: Amazon is in charge of customer service and shipping time, which might limit your flexibility.

Inventory Risk: Charges for long-term storage and oversupply can be a cost issue.

What Is Amazon FBM?

Fulfillment by Merchant (FBM) is where you sell your products on Amazon but do storage, packaging, shipping, and customer service yourself or via a third-party service.
Pros:

Lower Costs: No FBA fees, potentially better margins.

Increased Control: You control shipping, stock, and customer interactions.

Flexibility: Ideal for specialty products or custom-order products.

Cons:
No Prime by Default: You will not get Prime benefits unless you qualify for Seller-Fulfilled Prime.
More Responsibility: You handle returns, shipping logistics, and customer satisfaction yourself.

Time Intensive: Not necessarily ideal for solopreneurs or small businesses lacking fulfillment experience.

2025 Trends to Keep in Mind

This year, there are more resources and more competition than ever for new sellers. These are the key trends to consider when making a decision:

AI-Powered Pricing and Logistics: FBA leverages Amazon's smart algorithms to optimize shipping and returns.

Prime Shipping Faster Expectations: Consumers increasingly expect 1-day shipping, which becomes increasingly hard to provide with FBM.

Sustainability Focus: Green Buyers may choose sellers who utilize FBM with green packaging and carbon-neutral shipping.

International Expansion: FBA simplifies international selling through Amazon Global Logistics.

FBA or FBM? What’s Best for You?
Select FBA if:

You prefer to concentrate on marketing and scaling rather than logistics.

You sell high-volume, standardized products.

You want the Prime badge boost from day one.

Choose FBM if:
You sell niche, handmade, or customizable products.

You already possess a fulfillment system or wish to have control over the entire customer experience.

You want to experiment with Amazon at minimal upfront cost.

How SwifSol Can Help

At SwifSol, we are specialists at helping Amazon sellers kick off strong, grow smart, and stay ahead in 2025 and years to come.
Whether you require assistance finding the ideal model for your company or assistance with an FBA or FBM shift, our expert Amazon consulting for emerging sellers can be of assistance. We provide:
Amazon account configuration and optimization

FBA/FBM strategy guidance

Inventory forecasting and tracking

Automation tool incorporation

1-on-1 consulting and guidance

Make your Amazon experience a success.
📩 Reach out today: info@swifsol.com
🌐 Visit us: www.swifsol.com
📅 Book a consultation: https://calendly.com/swifsol/30min