For eCommerce brands selling on Amazon, fulfillment is a critical part of your customer experience. As Amazon’s marketplace continues to dominate global eCommerce, the debate between FBA (Fulfilled by Amazon) and FBM (Fulfilled by Merchant) has become more complex than ever.
In theory, both models achieve the same outcome: your products reach customers quickly and reliably. In practice, though, how that happens (and what it costs you in margin, data access, and brand control) can look very different.
Changes to Amazon’s FBA fee structure have made this choice even more consequential. Sellers face higher inbound placement fees, new inventory utilization surcharges, and more rigid storage limits. These shifts have many brands asking whether the convenience of FBA still outweighs the trade-offs, or if it’s time to explore a more flexible, data-driven 3PL (third-party logistics) partnership.
FBA has long been the default for sellers looking to scale fast. The program handles everything: warehousing, picking, packing, shipping, and even customer service. You gain faster shipping speeds and the credibility of the Amazon ecosystem.
But convenience comes at a cost.
Over the past two years, Amazon’s fulfillment and storage fees have increased steadily, often outpacing the benefits for mid-sized or growing brands. Sellers report shrinking margins and tighter space restrictions, especially for slower-moving or oversized items. Add in Amazon’s standardized packaging (your logo disappears behind the smiling box), limited access to customer data, and little control over returns. Suddenly, the “easy” option doesn’t feel so simple.
FBA also restricts your operational flexibility. If you sell on multiple platforms — Shopify, Walmart, or your own DTC site — Amazon’s infrastructure won’t prioritize those channels. That fragmentation can lead to inconsistent customer experiences, fractured inventory visibility, and operational inefficiencies that compound as you grow.
For sellers focused on long-term brand equity, data ownership, and margin protection, these challenges often signal it’s time to diversify their fulfillment approach.
FBM offers what FBA lacks: control. You decide where your inventory lives, how it’s packaged, and how customers experience your brand after clicking “Buy Now.”
For established brands with predictable sales volume (or those expanding beyond Amazon), FBM opens the door to a more strategic, scalable fulfillment model. You can centralize inventory across multiple channels, implement your own service standards, and choose carriers that align with your cost and speed goals.
Of course, FBM also requires more operational sophistication. Without the right infrastructure, it can introduce new pain points: delayed shipments, lack of real-time visibility, and inconsistent customer experiences. That’s why more merchants are turning to 3PLs to bridge the gap.
A 3PL partner can deliver the best of both worlds — Amazon-level fulfillment efficiency with the autonomy and insight that FBA simply doesn’t provide. For example, Materialogic integrates with platforms like Shopify and Amazon simultaneously, offering unified inventory visibility and real-time analytics through systems such as Infoplus WMS. This ensures consistent service across every channel, without surrendering control to a single marketplace.
For eCommerce brands, fulfillment is about more than just speed. Strategic enablement is the ultimate goal. Sellers want more than fast shipping; they want control, insight, and scalability. That’s why an increasing number of brands are moving away from reliance on Amazon’s fulfillment infrastructure altogether.
A 3PL partner like Materialogic gives you the flexibility to scale without losing brand identity or operational visibility. Here’s how:
A good 3PL partner helps you build a fulfillment ecosystem that aligns with your business strategy rather than constrains it.
FBA and FBM both have their place, but neither may be the perfect fit forever. As your business scales, your fulfillment strategy should evolve to support your success.
Materialogic helps growing eCommerce brands build smarter, more flexible fulfillment systems that adapt as their needs change. Whether you’re managing Amazon sales or expanding your DTC footprint, we provide the tools, visibility, and scalability to help you thrive beyond the Amazon ecosystem.
Ready to find the right fulfillment model for your business? Take our eCommerce Warehouse Assessment to see which model best fits your operations, or talk to our logistics experts for a personalized consultation.
For smaller sellers focused exclusively on Amazon, FBA can simplify operations, but rising fees and limited control make it less viable as you scale.
Absolutely. Many brands now use hybrid models, leveraging FBA for fast-moving SKUs and a 3PL for slower or specialty products.
A partner like Materialogic provides control, transparency, and flexibility across all channels, helping you own your customer experience and data while maintaining Prime-level efficiency.