The FBA vs FBM decision isn't as simple as most guides make out. It depends on your product, margins, volume, and business model. Here's how to make the right call.
When FBA Wins
- Small, lightweight products: FBA fees are lowest for small items. If your product fits in a shoebox, FBA is almost always the right choice.
- Prime Badge: FBA gives you the Prime badge, which significantly increases conversion rates (estimated 20–30% improvement).
- Volume: If you're selling 50+ units per day, FBA logistics are hard to beat.
- Buy Box: FBA sellers win the Buy Box more often, especially if competing with other sellers on the same listing.
When FBM Makes Sense
- Large/heavy products: FBA fees for oversized items are brutal. A 15kg product might cost £8–12 in FBA fees alone.
- Personalised products: If each order requires customisation, FBA doesn't work.
- Low margin items: When margins are thin, FBA fees may make the product unprofitable.
- Slow sellers: FBA long-term storage fees punish slow-moving inventory. If a product takes 6+ months to sell, you'll pay for warehouse space monthly.
The Hybrid Approach
Many successful sellers use both: FBA for fast-moving core products (for the Prime badge and logistics simplicity) and FBM for oversized, customised, or long-tail products. You can even have both FBA and FBM offers on the same listing as a backup.
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