Should you let Amazon fulfill your product or should you fulfill it yourself? In this video, I will share with you the Pros and Cons of doing FBA and FBM and I will also help you decide which one is perfect for you.

Fulfilled by Amazon

Pros
1. You don’t have to ship it yourself.
2. You don’t need to handle returns.
3. More sales! This is the biggest Pro. When your product is an FBA Product, it becomes prime eligible. This means that people who pay for the prime membership can get your product within two days. Amazon also promotes products that are prime eligible more than it would products that are not prime eligible. Customers are also more likely to buy a Prime Eligible product because of the other benefits.

Cons
1. Higher Fee – This is well justified for me because you don’t have to do the work of shipping your products.
2. They may lose stuff – This is really not a problem too since Amazon will pay for the full price of your product when it gets damaged or lost.
3. Watch inventory – You have to make sure that you don’t run out or don’t have too many products in your inventory. Amazon may bring down your sales rank if you run out of stock for a long period of time.

Fulfilled by Merchants

Pro
1. You don’t have to pay the fee.
2. You can offer more options.
3. You can do made to order items.

Cons
1. You have to ship it yourself
2. You won’t get as many sales

How do you know which one is right for you?
If you are doing private labeling or a doing a passion product like Performance Nut Butter or Vino Cards, you can do FBA . You only have one SKU and it’s not difficult to track inventory. You will get also get more sales without dealing with all the shipping.

But, if you have a ton of Products and you are not sure which product is going to sell, then you can start with fulfilled by merchant and then eventually move a few selected best seller products into Amazon FBA.

There are a lot more reasons why you should choose to do FBA instead of FBM but I think 95 o% of you guys would agree that FBA makes more sense. The decision, however would still depend on you at the end, so make sure to consider the Pros and Cons that I shared with you when it’s time to decide.

The only warning I have is, if you’re thinking about selling on Amazon, I personally do not recommend buying wholeselling and reselling or even boring old private labeling. I still highly recommend creating a passion product so go check out my videos about how I created Performance Nut Butter and how my girlfriend is working on her own passion product, Vino Cards.