If you sell on Amazon.ca, one of your biggest decisions is who ships your orders. With FBA, Amazon stores and ships your products. With FBM, you or your 3PL do. This guide explains Amazon FBA vs FBM in Canada, the pros and cons of each, and how many sellers combine them.
What is Amazon FBA?
FBA (Fulfillment by Amazon) means you send your inventory to Amazon’s fulfillment centres. Amazon stores it, picks and packs each order, ships it to the customer and handles customer service and returns for those orders. FBA products are usually eligible for Prime shipping.
What is Amazon FBM?
FBM (Fulfilled by Merchant) means you list on Amazon but store and ship the orders yourself, or through a 3PL. You control the packaging, carriers and stock, and you handle customer service for those orders.
FBA vs FBM at a glance
| FBA | FBM | |
|---|---|---|
| Who stores and ships | Amazon | You or your 3PL |
| Prime badge | Usually yes | Not usually |
| Fees | Amazon fulfillment and storage fees | Your own shipping and warehouse costs |
| Control over packaging | Must follow Amazon rules | Full control |
| Inventory limits | Amazon can limit how much you send | No Amazon limits |
| Returns | Handled by Amazon | Handled by you or your 3PL |
| Best for | Fast-selling, small to mid-sized products | Bulky, slow-moving or high-margin products |
When FBA makes sense
- Your products are small, light and sell quickly.
- The Prime badge would help you win sales and the Buy Box.
- You want Amazon to handle shipping and customer service for those orders.
When FBM makes sense
- Your products are large, heavy or slow-moving, so Amazon fees and storage costs are high.
- Amazon has limited how much stock you can send in.
- You sell on several channels and want one shared inventory.
- You want custom packaging or bundles that Amazon’s rules make difficult.
Using both: the hybrid approach
Many sellers keep most of their stock with a 3PL and send regular smaller shipments to Amazon FBA. The 3PL ships FBM, website and wholesale orders from the same inventory, and tops up FBA before stock runs low. This lowers Amazon storage fees and keeps you selling if FBA stock runs out or inbound shipments are delayed.
Preparing inventory for FBA
Amazon has strict rules for labelling, packaging and carton sizes. Getting them wrong can mean delays, extra fees or rejected shipments. Read our guide to Amazon FBA prep requirements in Canada. Also selling on Walmart? See Walmart WFS vs Amazon FBA.
FBA prep and FBM fulfillment in Mississauga
Newsom 3PL offers Amazon FBA prep and replenishment from our Mississauga warehouse: receiving, FNSKU labelling, packaging prep, bundling and shipping to Amazon. We also fulfill FBM and website orders through our e-commerce fulfillment service, so one inventory can serve every channel. Request a quote.
Frequently asked questions
Is FBA or FBM better for new sellers?
FBA is often easier for small, fast-selling products because Amazon handles shipping and customer service. FBM can be better for bulky or slow-moving items, where Amazon fees are high.
Can I use FBA and FBM for the same product?
Yes. Many sellers offer a product through FBA and keep FBM as a backup, so they can keep selling if FBA stock runs out.
Do FBM orders get the Prime badge?
Usually not. Prime eligibility mainly comes with FBA, so FBM sellers compete on price, delivery speed and service.
Can a 3PL send my inventory to Amazon?
Yes. A 3PL can receive your stock, prep and label it to Amazon’s rules and ship it to Amazon fulfillment centres, while storing the rest for other channels.