The Fulfillment Question
One of the most important decisions for Amazon sellers is choosing between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). This choice significantly impacts your Buy Box competitiveness.
FBA Advantages
- Prime badge increases conversion rates
- Significant Buy Box advantage
- Amazon handles customer service for orders
- Eligible for Prime Day and holiday promotions
FBM Advantages
- Lower fees for some products
- More control over inventory
- Better for oversized or slow-moving items
- No long-term storage fees
Buy Box Competition
The key insight: FBA and FBM sellers compete in separate pools. An FBA seller will almost always beat an FBM seller for the Buy Box, even at a higher price.
Repricing Strategy by Fulfillment
For FBA Sellers
You have pricing power. Don't always match the lowest price—you can often win the Buy Box at a premium because of Prime eligibility.
For FBM Sellers
Focus on beating other FBM sellers. Consider FBA for your most competitive products where Buy Box wins are essential.
Hybrid Approach
Many successful sellers use both methods strategically. Use FBA for fast-moving, high-competition items and FBM for others.
Related Articles
- Understanding the Buy Box Algorithm - Comprehensive Buy Box guide
- 10 Repricing Strategies - Winning tactics for any fulfillment method
- Beginner's Guide - Start here if you're new to repricing
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