Amazon will store, pack, and ship products if you start selling on Amazon with FBA. The customer service is managed by Amazon as well, you’re only responsible for sending products to Amazon. But Amazon charges some fees for Fulfilment By Amazon.
FBM stands for Fulfilment by Merchant. In this case, the merchant manages their own inventory, shipping, and customer service. You just have to place the product listings on Amazon and do everything on your own to avoid additional platform fees.
Which is better?
FBA is better for sellers selling higher margin products in higher volumes while the FBM is great for sellers selling lower margin products or are working at a smaller scale. It’s up to you to do a cost comparison to get the most viable option for your business.
Warren RaathCEO, Kalahari Khabu