FBM vs FBA: Why UK Sellers Should Consider Fulfilled by Merchant

When it comes to selling on Amazon in the UK, one of the most important decisions you'll make is how you fulfil your orders: Fulfilled by Amazon (FBA) or Fulfilled by Merchant (FBM). While FBA offers convenience and access to Amazon Prime customers, FBM is increasingly becoming the smarter choice for many UK-based sellers—especially in today’s climate of tighter margins, complex inventory logistics, and the growing importance of brand control.

Here’s why FBM might be the better route for your UK eCommerce operation.

1. Better Control Over Inventory & Logistics

FBA requires you to ship your inventory to Amazon’s fulfilment centres, which means handing over control of your stock. With FBM, you stay in charge of your own warehousing and dispatch operations, whether that's in-house or through a third-party UK fulfilment provider, like UK Fulfilment.

This gives you:

Greater flexibility in managing stock levels
Easier multi-channel integration (e.g., your website, eBay, Shopify)
Fewer surprises when it comes to misplaced or damaged stock

If you partner with a reliable third-party logistics provider, you can often match or even exceed Amazon’s delivery expectations—without the hefty storage fees and stock restrictions.

2. Cost-Effective for Medium to Large Sellers

FBA fees in the UK can add up quickly. Between storage charges, fulfilment fees, long-term storage penalties, and optional prep services, your margins can shrink before you know it.

FBM allows you to:

Avoid peak season surcharges
Set your own storage and fulfilment strategy
Use volume-based shipping rates negotiated through UK couriers

In fact, many sellers find that outsourcing to a UK fulfilment partner ends up being more cost-effective than FBA, especially when shipping larger or heavier products.

3. More Control Over the Customer Experience

FBA handles customer service and returns, but that’s not always a good thing. With FBM, you get:

Direct communication with your buyers
Full visibility of returns and reasons
The chance to offer branded packaging and inserts, helping build brand loyalty

This is particularly valuable if you're looking to scale a DTC (direct-to-consumer) brand alongside your Amazon presence. Keeping control of your customer interactions is essential for long-term growth.

4. No FBA Inventory Limits

One ongoing frustration for FBA sellers in the UK has been Amazon’s inventory restrictions, especially during Q4 and other high-demand periods. FBM completely bypasses these limitations.

This means:

You can scale on your own terms
No stock stranded at Amazon due to policy changes
Easier product launches without the risk of sudden FBA cut-offs

5. FBM Doesn’t Mean Slower Delivery—If You Partner Smart

A common myth is that FBM sellers can’t compete with FBA on delivery speed. But that’s simply not true in 2025. Many UK Fulfilment centres now offer next-day shipping, integrations with Royal Mail, DPD, Evri, and more.

Choose the right fulfilment partner, and you can meet Amazon’s Seller Fulfilled Prime standards—or at least ensure reliable, fast delivery that keeps your customers happy and your metrics strong.

FBM Offers Long-Term Flexibility

FBA might be a great fit for some businesses, especially for lightweight, fast-moving items. But for many UK-based sellers, FBM offers more control, better margins, and room to build a long-lasting brand. Whether you're fulfilling from your own warehouse or using a UK 3PL, FBM allows you to grow with less dependency on Amazon’s ever-changing policies.

If you're exploring fulfilment options, now is the time to weigh your FBM setup and consider working with a UK-based fulfilment partner who understands Amazon's ecosystem—without locking you into it.