By Veronice Cheung January 31 2025
As an Amazon seller, choosing the right fulfillment method is a crucial decision that impacts your costs, efficiency, and customer experience. The three primary options are Amazon FBA (Fulfilled by Amazon), FBM (Fulfilled by Merchant), and WFS (Walmart Fulfillment Services)—each with its own strengths and drawbacks. This guide provides a detailed comparison, backed by the latest data and insights, along with a rating chart to help you evaluate and select the best fulfillment solution for your business.
FBA vs FBM Comparison Calculator
| Criteria | Options | FBA Score | FBM Score |
|---|---|---|---|
| Product Size & Weight | 0 | 0 | |
| Order Volume | 0 | 0 | |
| Shipping Speed | 0 | 0 | |
| Fulfillment Fees | 0 | 0 | |
| Storage Costs | 0 | 0 | |
| Control Over Branding | 0 | 0 | |
| Return Handling | 0 | 0 | |
| Cross-Border Shipping | 0 | 0 | |
| Customer Service Management | 0 | 0 |
Results:
FBA Total Score: 0
FBM Total Score: 0
Understanding FBA, FBM, and WFS
What is Amazon FBA?
Amazon Fulfilled by Amazon (FBA) is a service that allows sellers to store their products in Amazon’s fulfillment centers, where Amazon takes care of picking, packing, shipping, customer service, and returns. By using FBA, sellers gain access to Amazon Prime’s loyal customer base.
Key figures:
- Sellers using FBA report a sales increase of up to 30% due to Prime eligibility.
- FBA fees include inventory storage and fulfillment fees which are based on the weight and dimensions of your product.
What is Amazon FBM?
Fulfilled by Merchant (FBM) allows sellers to handle the fulfillment process independently. They manage the storage, packing, shipping, and customer service, either in-house or via third-party logistics (3PL) providers. FBM offers more control over the supply chain, especially for larger, bulkier items that incur high FBA fees.
FBM has gained popularity due to flexibility and cost-effectiveness, particularly for sellers who already have access to reliable shipping partners or warehouses. It is particularly advantageous in cross-border shipping, where sellers need more control over inventory and fulfillment costs.
Key figures:
- FBM sellers can save up to 30% on fees compared to FBA sellers in certain categories.
- The average FBM seller earns higher profit margins on bulkier items due to the avoidance of FBA storage fees.
What is Walmart Fulfillment Services (WFS)?
WFS is Walmart’s answer to Amazon’s FBA. Sellers can send inventory to Walmart’s fulfillment centers, and Walmart handles the shipping and customer service. WFS also integrates with Walmart’s marketplace, allowing sellers to reach its large customer base. It is especially useful for sellers who want to expand beyond Amazon.
Pros and Cons of FBA, FBM, and WFS
Pros and Cons of FBA
| Pros | Cons |
|---|---|
| Prime eligibility (80M+ users) | High fulfillment and storage fees |
| Higher chances of winning Buy Box | Less control over inventory management |
| Simplified returns & customer service | Commingling of inventory risk |
| More exposure in search results | High costs for bulky items |
Pros and Cons of FBM
| Pros | Cons |
|---|---|
| More control over inventory and shipping | Must manage own customer service and returns |
| Higher profit margins, especially on bulky items | Less visibility without Prime badge |
| Ability to customize packaging and branding | Can be time-consuming for small teams |
| Avoids high FBA fees for large products | No automatic access to Amazon Prime customers |
Pros and Cons of WFS
| Pros | Cons |
|---|---|
| Access to Walmart’s massive customer base | Still in early growth stages |
| Streamlined shipping and fulfillment | Not as widely used as Amazon |
| Competitive pricing compared to FBA | Limited to Walmart’s marketplace |
Who Should Use FBA, FBM, or WFS?
You should consider FBA if:
- Your products have high sales velocity.
- You want to maximize exposure to Amazon’s Prime customers.
- You do not have the infrastructure for storage and shipping.
- You sell small, lightweight products that can absorb FBA fees.
FBM is a better fit if:
- Your products are bulky or heavy, making FBA fees prohibitive.
- You already have a reliable logistics network or 3PL partner.
- You need more control over packaging and branding.
- You are handling cross-border shipping or international orders, especially for Canada-to-U.S. shipments.
Choose WFS if:
- You are expanding beyond Amazon and want to tap into Walmart’s marketplace.
- Your products align with Walmart’s customer base and shipping needs.
- You want to reduce fulfillment costs without losing access to a major retailer’s customer base.
Price Comparison: FBA, FBM, and WFS
FBA Fees
FBA costs are divided into fulfillment fees and storage fees. Below is a breakdown:
| Product Size | Fulfillment Fee per Unit | Storage Fee (per cubic foot/month) |
| Small item | $2.50 – $4.90 | $0.87 – $2.40 |
| Large item | $7.50 – $15.00+ | $2.40 – $3.60 |
FBM Cost Considerations
FBM sellers must factor in the costs of:
- Shipping (based on carrier rates, product weight, and distance).
- Warehousing (average costs range from $1-2 per square foot per month).
- Packaging and handling (customized to the seller’s needs).
WFS Pricing
WFS charges are typically lower than FBA, offering a competitive edge for large sellers:
- Fulfillment fees range from $3.45 to $5.88 per unit.
- Storage fees are generally $0.75 to $2.00 per cubic foot.
FBA vs FBM vs WFS
| Criteria | FBA Score | FBM Score | WFS Score |
| Sales Volume | High | Medium | High |
| Fulfillment Control | Low | High | Medium |
| Fees & Costs | High | Low | Medium |
| Prime/Marketplace Access | High | Low | High |
| Shipping & Fulfillment Flexibility | Low | High | Medium |
This table is based on various business needs. For instance, if your focus is on cost control and shipping flexibility, FBM scores the highest, especially if you are dealing with cross-border logistics.
For sellers with larger, bulkier items, FBM offers better control, which is where partnering with third-party logistics (3PL) companies or providers like Dino-Express could enhance your operational efficiency.
Conclusion: Which Fulfillment Option Should You Choose?
Deciding between FBA, FBM, and WFS depends on your product type, sales volume, and operational capabilities. For sellers managing small, fast-moving items, FBA provides unbeatable access to Prime customers and helps win the Buy Box more easily. However, the high fees associated with FBA can eat into profit margins, especially for larger products.
On the other hand, FBM allows greater flexibility and control over the fulfillment process. This is particularly valuable if you sell bulky items, require cross-border shipping, or have an existing logistics network. By partnering with a service like Dino-Express, which specializes in cross-border fulfillment, you can further reduce costs and improve efficiency without compromising service quality.
Ultimately, it’s important to assess your business’s needs carefully, run the numbers, and use the score chart to weigh which method will work best for you.
