Amazon Shipping & Fulfillment Guide
Updated: March 25, 2026
Quick Comparison
Option
Prime
You Ship
Fees
Control
FBA (Fulfillment by Amazon)
How It Works
1.Ship inventory to Amazon warehouses
2.Amazon stores, picks, packs, ships
3.Amazon handles returns & customer service
Pros
•✅ Prime badge
•✅ Buy Box advantage
•✅ Amazon handles everything
•✅ Multi-channel fulfillment
•✅ Customer trust
Cons
•❌ Higher fees
•❌ Less control
•❌ Storage limits
•❌ Potential commingling issues
Costs
•Fulfillment fees: $2.50-$137+/unit
•Storage: $0.87-$2.40/cu ft/month
•Long-term storage: $6.90/cu ft (365+ days)
•Removal fees: $0.60-$0.90/unit
FBM (Fulfillment by Merchant)
How It Works
1.You store inventory
2.You pick, pack, ship
3.You handle returns & customer service
Pros
•✅ Lower fees
•✅ Full control
•✅ No storage limits
•✅ Better for large/heavy items
•✅ Direct customer relationship
Cons
•❌ No Prime badge (usually)
•❌ Must meet shipping metrics
•❌ Higher workload
•❌ Customer service responsibility
Requirements
•Valid tracking rate > 95%
•Late shipment rate < 4%
•Cancellation rate < 2.5%
SFP (Seller Fulfilled Prime)
How It Works
1.You ship from your warehouse
2.Must meet Prime delivery standards
3.Prime badge displayed
Requirements
•Professional seller account
•Premium shipping enabled
•99% on-time shipping
•< 0.5% cancellation rate
•Valid tracking > 99%
Pros
•✅ Prime badge
•✅ Lower fees than FBA
•✅ Full control
•✅ No storage fees
Cons
•❌ Strict requirements
•❌ Premium carrier costs
•❌ Can lose eligibility
Decision Matrix
Choose FBA When:
•Sales volume justifies fees
•Want Prime badge
•Don't have warehouse
•Prefer hands-off approach
•Multi-channel selling
Choose FBM When:
•Large/heavy products
•Low sales volume
•Have warehouse capability
•Want more control
•Higher margin products
Choose SFP When:
•Want Prime + control
•Can meet strict requirements
•Have reliable shipping
•Local delivery capability
Hybrid Strategy
Many successful sellers use both:
•FBA for fast-moving items
•FBM for slow/heavy items
•SFP for local advantage
Common Questions
Q: Can I switch between FBA and FBM?
A: Yes, you can have both for same ASIN
Q: Does FBA guarantee Buy Box?
A: No, but it increases chances significantly
Q: What's the minimum for SFP?
A: Must ship Prime to all US addresses
Conclusion
Key Factors:
1.Product characteristics
2.Volume and velocity
3.Budget and resources
4.Control preferences
Need Help?
Account Health Desk provides free fulfillment analysis.
Contact: support@accounthealthdesk.com | Telegram: @accounthealthdesk