Amazon FBA vs FBM: Which Is the Best Model in 2025?
In 2025, Amazon FBA dominates the market, but deciding between FBA and FBM involves key considerations beyond costs. You need to choose whether to rely on Amazon for fulfillment, handle shipping yourself, or work with a third-party logistics (3PL) provider. Each option has its benefits, and making the right choice is crucial for your business’s success. This guide clearly compares Amazon FBA vs. FBM and 3PL side-by-side, helping you choose the smartest fulfillment strategy based on your budget, goals, and growth stage. For more context on fulfillment mistakes, read 10 most expensive mistakes new Amazon sellers make. What Is FBA, FBM, & 3PL? (Quick Breakdown) Let’s start simple. There are three main ways to fulfill Amazon orders, and each works best in different situations. FBA (Fulfilled by Amazon) FBA is Amazon’s all-in-one fulfillment service. You send your products to an Amazon fulfillment center, and they handle everything from storage and picking to packing, shipping, and customer returns. This option is best if you want automation and access to Amazon’s fast Prime shipping network. With FBA, you focus on sales while Amazon manages the logistics. Learn more from Amazon’s official FBA overview. FBM (Fulfilled by Merchant) With FBM, you list your products on Amazon but fulfill the orders yourself. This means you’re responsible for storing inventory, packing orders, and shipping them to customers. FBM can work well for sellers who have in-house fulfillment or want more control over packaging and branding. It also allows more flexibility with custom inserts and handling specific shipping preferences. Learn more on Amazon’s FBM Help Page. 3PL (Third-Party Logistics) A 3PL is a non-Amazon company that stores and ships your products for you. These providers often integrate directly with Amazon to fulfill FBM orders or support FBA restocking. 3PLs are useful when you want to outsource fulfillment without relying entirely on Amazon. They’re especially helpful for sellers managing inventory across multiple sales channels, such as Walmart, TikTok Shop, and Shopify. Read more in Shopify’s 3PL guide. Cost Breakdown: What’s Cheaper in 2025? In 2025, costs have changed across all fulfillment models. Amazon FBA fees have increased. Inbound Placement Service charges, storage surcharges, and return handling fees are higher than ever. However, you get benefits like fast shipping and customer service. For the latest FBA fee updates, check Amazon’s official 2024–2025 FBA fee changes. FBM costs are rising too. USPS and carrier rates went up, and if you’re fulfilling orders yourself, you’ll spend more time packing, labeling, and managing returns. Learn more from USPS Pricing and Rate Changes. 3PL pricing can be more affordable for larger or bulky items. You pay for storage, pick-and-pack, and shipping, but you often save compared to Amazon’s peak-season storage costs. Some leading 3PLs provide dynamic rate tools and volume-based discounts, making them competitive alternatives. “I profit more on FBA now. USPS rates have gone up so much… It used to be even.” -Reddit user. Pros and Cons of Amazon FBA Pros of FBA Cons of FBA “If you’re scaling, FBA gives feedback protection and Prime visibility.” – Reddit user. Pros and Cons of FBM + 3PL Pros of FBM and 3PL Cons of FBM and 3PL “I use FBM to test products. If they flop, I’m not stuck with FBA storage fees.”- Reddit user. When to Use Amazon FBA, FBM, or a 3PL Choosing the right model depends on your situation. If you’re just starting on Amazon, FBA is often the best way to gain traction quickly. For deeper insight, you can also explore our guide on whether Amazon FBA is still worth it in 2025. It gives you access to Prime shipping and lets Amazon handle most of the heavy lifting. If you’re testing a risky or unproven product, using FBM or a 3PL is a safer option. This way, you won’t lock up inventory in Amazon’s warehouses and won’t be hit with storage fees if the product doesn’t sell. When scaling a best-selling item, FBA still shines. The speed, automation, and Prime visibility help drive more conversions and let you focus on growth. For oversized, seasonal, or slow-moving inventory, FBM combined with a 3PL often makes more sense. You’ll save on storage fees and maintain flexibility. If you run a brand that sells on platforms like Walmart, TikTok Shop, or your own Shopify store, FBM and a 3PL can centralize your inventory and fulfill orders from every channel. Lastly, if you want to avoid FBA restock limits during Q4 or major sales events, using a 3PL as a buffer to feed inventory into FBA can help you stay in stock without overpaying on storage. Why a Hybrid Strategy Wins in 2025 Most experienced sellers in 2025 are no longer sticking to just one fulfillment method. Instead, they combine Amazon FBA with 3PL or FBM to create a flexible and cost-effective strategy that gives them the best of all worlds. A hybrid approach allows sellers to use FBA for their top-performing SKUs—those products that sell quickly and benefit from Amazon’s Prime badge and logistics. At the same time, they can use FBM or a 3PL to test new products or manage slower-moving inventory without the risk of incurring high storage fees. If you’re considering launching a new store, our article on Amazon dropshipping profitability in 2025 provides more perspective. Sellers also rely on 3PLs to restock FBA more affordably and quickly, especially during high-demand periods like Q4. Additionally, using a 3PL makes it easy to fulfill non-Amazon orders from platforms like Shopify, Walmart, and TikTok Shop, all from the same inventory pool. By combining these methods, sellers gain more control, reduce fulfillment risk, and protect their profit margins across all sales channels. How to Build a Fulfillment Strategy That Works To succeed with a hybrid strategy, start by identifying your best-selling products and shipping those via FBA to maximize reach and Prime eligibility. Next, use FBM or a trusted 3PL to handle low-volume, seasonal, or oversized items to save on fees and remain agile. Finally, look at the bigger
How to Sell on TikTok Shop: The Ultimate Beginner’s Guide [2025]
TikTok is where trends catch fire, and now, where products move fast. In 2025, TikTok Shop has become a practical and accessible way to build a real online business. This isn’t just a trend, it’s a proven opportunity. In fact, November 2024 was TikTok Shop’s strongest month in the U.S., generating $1.29 billion in GMV, including over $100 million on Black Friday. If you’ve been hearing about TikTok Shop but still feel in the dark, this guide is for you. It’s time to stop wondering and start knowing. We’ll show you exactly how it works, from setting up your store and choosing what to sell, to creating videos that turn views into sales. This is your step-by-step breakdown with zero fluff and all the answers. What Is TikTok Shop & Who Can Sell? TikTok Shop is TikTok’s built-in ecommerce feature. It allows users to buy products directly from videos, livestreams, and creator profiles without ever leaving the app. You can sell on TikTok Shop if you: Roughly half (49.7%) of TikTok shoppers in the U.S. purchase something from the platform once a month. So, whether you’re a brand or an individual, TikTok makes it easy for beginners to register and start selling. How to Set Up Your TikTok Shop (Step-by-Step) Once approved, your TikTok Shop account will be live and ready to accept orders. What to Sell & How to Create Content That Converts Not every product works well on TikTok. People love to watch videos that are fun, fast, and full of action. Products that usually perform well are trendy, visually appealing, and low-cost, typically under $50. You don’t need fancy ads. Focus on real, engaging content that fits TikTok’s casual style. This includes short unboxings, live demos, trending sounds, or creator partnerships. Whatever you sell, your TikTok Shop content strategy should always match how people use the app—quick, casual, and creative. How Orders, Shipping & Payments Work When a customer places an order, you’ll receive a real-time notification through the TikTok Shop Seller Center. You’re then responsible for picking, packing, and shipping the product using the shipping method you previously set. TikTok tracks the delivery, and once the product is confirmed as delivered, your payment is released, usually within 3–7 days. For sellers in select regions, TikTok offers a program called TikTok Shop Fulfilled by TikTok (FBT), where TikTok handles storage, packaging, and shipping on your behalf. This can improve delivery speed, boost customer satisfaction, and help you win the “Fulfilled by TikTok” badge, which increases buyer trust. You can also explore third-party logistics (3PL) providers to scale operations, but make sure they integrate well with TikTok’s tracking and notification system. For a detailed breakdown of TikTok’s fulfillment and payment policies, visit their Help Center. Tips to Succeed + Common Mistakes to Avoid If you want to succeed on TikTok Shop, consistency and content quality matter. Posting regularly (ideally 3 to 5 times per week) keeps your audience engaged and signals to TikTok’s algorithm that you’re active and worth promoting. But it’s not just about quantity. You also need to understand what’s working. Use TikTok’s built-in analytics (check out TikTok Analytics Guide) to track video performance, watch time, and conversion data. Focus on the types of content that get viewers to comment or click through. Many sellers overlook the power of community. Respond to comments and reviews quickly. Going live even once a week can dramatically boost visibility and build trust with potential buyers. Tools like TikTok’s Creator Marketplace can also help you find influencers to promote your products authentically. On the flip side, don’t rely too heavily on one viral video to carry your store. Viral content can bring a quick boost, but long-term growth comes from reliable shipping, fast customer service, and consistent product availability. Poor video quality, delayed fulfillment, or ignoring messages will quickly drive customers away. Think of TikTok Shop as a storefront, not a one-hit wonder. The more you treat it like a real business, with content, care, and customer attention, the better your chances of long-term success. TikTok Shop vs. Amazon & Walmart While TikTok Shop is a rising star in ecommerce, it’s worth comparing it to established giants like Amazon and Walmart to understand where each shines. TikTok Shop TikTok Shop offers an entertainment-first approach to ecommerce. Sales happen within a content feed, meaning your product can go viral overnight. It’s ideal for visual, impulse-buy products and sellers who can create or collaborate on engaging video content. The biggest advantage is TikTok’s algorithm, which can push your product to millions organically, without relying solely on paid ads. Amazon In contrast, Amazon is a search-based platform. Buyers go there with intent, which often results in higher conversion rates for evergreen or essential products. However, competition is fierce, and you need strong SEO, reviews, and FBA logistics to stand out. Amazon favors mature listings, long-term sellers, and PPC mastery. Walmart Walmart Marketplace is growing, but still less saturated than Amazon. It’s stricter in approvals and best suited for sellers with existing inventory and experience. Walmart focuses heavily on pricing and fulfillment standards, and currently lacks the viral edge of TikTok’s algorithm-driven discovery. If you’re just starting and want to build a brand around content and community, TikTok Shop may give you faster traction. If you’re focused on consistent sales and established demand, Amazon might be the better long-term play. Some sellers even succeed by using TikTok to drive traffic to Amazon or Walmart for fulfillment. Want help navigating which channel is best for you? Want Your Own Expert Team? TikTok Shop is growing fast, and it’s not too late to get started. The tools are simple, the reach is massive, and customers are ready to buy. Want to launch with confidence? At Brand Aventus, we help new sellers set up, optimize, and scale their TikTok Shops for real success. Book your free consultation today and start building a TikTok Shop that sells.
