Amazon FBA in 2025: Is It Still Worth It or Should You Switch to FBM or 3PL
If you’re an Amazon seller, you’ve probably felt the pinch of rising FBA fees in 2025. From storage fee increases to new low inventory fees, it’s never been more expensive to use Amazon’s fulfillment services. So the big question is: is Amazon FBA still worth it—or is it time to switch to FBM or a third-party logistics (3PL) provider?
In this guide, we’ll break down the pros, cons, and hidden costs of each fulfillment method to help you make the right call for your business.
Amazon FBA in 2025: Pros and Cons
Pros:
- Prime eligibility: FBA products show the Prime badge, boosting trust and conversion rates.
- Buy Box boost: FBA listings are more likely to win the Buy Box.
- Amazon customer service & returns included.
Cons:
- Higher fees: Amazon raised storage and fulfillment fees in 2025. You might be paying more than you realize.
- New low inventory level fees: Running low on stock? Amazon penalizes you with extra fees.
- Limited storage space: Restock limits are stricter than ever.
For low-margin products, FBA can eat into profits unless you have fast turnover and tight inventory control.
When Amazon FBM Makes Sense in 2025
Pros:
- Lower costs for oversized or slow-moving items.
- Full control over packaging, branding, and shipping speed.
- No surprise storage fees or restock limits.
Cons:
- No Prime badge (unless enrolled in Seller Fulfilled Prime, which has its own requirements).
- You’re responsible for customer service and returns.
- Harder to win Buy Box if competing against FBA sellers.
FBM works well for unique, handmade, or bulky products that don’t need Prime shipping.
Where 3PLs Fit Into Amazon Selling in 2025
Pros:
- Better bulk storage rates than FBA.
- Easier to prep inventory for Amazon (especially for compliance-heavy categories).
- Diversifies risk by not keeping all inventory with Amazon.
Cons:
- Still need to ship inventory into Amazon for FBA (if you want Prime eligibility).
- Added complexity managing inventory across warehouses.
Pro Tip:
Many sellers use a hybrid model—storing bulk inventory at a 3PL and replenishing FBA stock in smaller shipments.
FBA vs FBM vs 3PL: Which Should You Choose in 2025?
| Factor | FBA | FBM | 3PL |
| Prime eligibility | Yes, Prime badge included |
 No, unless enrolled in Seller Fulfilled Prime (SFP) |
Yes, if inventory is shipped into Amazon (FBA) from the 3PL |
| Buy Box advantage | Strong advantage |
Weaker advantage (Buy Box less likely without Prime) |
Strong advantage if using FBA; otherwise depends |
| Storage fees | High | Low | Medium |
| Customer service | Amazon handles it | You handle it | 3PL handles it (varies by provider) |
| Returns | Amazon handles it | You handle it | 3PL handles it (varies by provider) |
| Control over shipping | Low (Amazon controls) | High (you control) | Medium (shared between you and 3PL) |
Key Takeaways for Amazon Sellers in 2025
If you sell small, fast-moving products and want Prime visibility, FBA still makes sense—just monitor your fees closely.
If you sell oversized, low-volume, or custom items, FBM may save you money in 2025.
If you’re scaling or need better storage rates, consider adding a 3PL to your strategy.
Many successful sellers are using a hybrid fulfillment approach in 2025—balancing FBA’s Prime benefits with 3PL storage or FBM flexibility to stay profitable.
Pro Tip:
Tools like Seller Labs’ Restock app can help you stay ahead of Amazon’s inventory limits, avoid stockouts, and improve your FBA profitability.
Should You Stick With FBA?
Amazon FBA is still a powerful tool, but it’s not the automatic best option it once was. If rising fees, storage limits, or inventory restrictions are hurting your margins, it’s time to reevaluate.
Use Seller Labs tools to track your fees, monitor profitability, and make smarter inventory decisions in 2025.
Want to cut costs and boost profits?
Try Seller Labs to optimize your amazon strategy!
The post Amazon FBA in 2025: Is It Still Worth It or Should You Switch to FBM or 3PL appeared first on Seller Labs: Amazon Seller Software and Platform.
Can I direct buyers to another Amazon seller if buyers want replacement parts
As the title says I want to know if there is a way to inform buyers of another Amazon store that sells add-ons to my product and replacement parts. I do not want to be bothered stocking or selling parts when I direct them to another seller . If I am allowed to do this how and where ? I contacted the other seller just to make sure they are cool with this, if allowed and do have enough inventory.
submitted by /u/OutrageousBed2
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Can I direct buyers to another Amazon seller if buyers want replacement parts
As the title says I want to know if there is a way to inform buyers of another Amazon store that sells add-ons to my product and replacement parts. I do not want to be bothered stocking or selling parts when I direct them to another seller . If I am allowed to do this how and where ? I contacted the other seller just to make sure they are cool with this, if allowed and do have enough inventory.
submitted by /u/OutrageousBed2
[link] [comments]
#446 – Danny McMillan’s Insights on Adapting to Industry Shifts
Join us as we engage in a fascinating discussion with e-commerce thought leader, Danny McMillan. Danny shares his extensive knowledge on Amazon patents, AI developments, and the art of hosting successful e-commerce events. Let’s explore the unique challenges of organizing such events across different regions, particularly the logistical hurdles of drawing attendees from various countries. Danny also provides an insightful look into how the COVID-19 pandemic has reshaped event planning, highlighting the need for flexibility and adaptability in the face of ever-changing safety regulations.
Their conversation also explores the dynamic landscape of industry conferences and how they are being revolutionized by thought leaders like Kevin King. They discuss innovative event formats, such as the Market Masters event, which focuses on personalized, expert-driven sessions rather than traditional presentations. The transformation of Seller Sessions into a more interactive learning experience is highlighted, emphasizing the importance of adapting event formats to meet evolving participant expectations. By sharing our experiences, we uncover the power of creating engaging, impactful environments that foster meaningful learning and networking opportunities.
Lastly, we touch on the evolving trends within the agency business, the impact of AI and automation on e-commerce, and the critical role of understanding customer objections for conversion optimization. As agencies navigate the challenges of a competitive landscape, differentiation and genuine value become key to success. Meanwhile, the rapid advancements in AI technologies are reshaping industries, underscoring the necessity for sellers and companies to stay informed and adaptable. This episode offers a comprehensive overview of the e-commerce landscape, event management strategies, and future trends, making it a must-listen for anyone keen on staying ahead in the industry.
In episode 446 of the AM/PM Podcast, Kevin and Danny discuss:
- 00:00 – E-Commerce Events and Challenges
- 04:02 – Europe vs US Amazon Seller Events
- 12:36 – Transition to Workshop-Style Seller Sessions
- 17:30 – Teaching With Lesson Plans and Goals
- 20:11 – Event Management Strategies and Security
- 24:31 – Agency Business Trends and Evolution
- 28:22 – Growth of Competition in Marketing Agencies
- 31:37 – Importance of Differentiating in E-commerce Sales
- 37:54 – Customer Objections and Conversion Optimization
- 45:17 – Discovering Consumer Preferences Through Testing
- 50:10 – Future Trends in AI and E-Commerce
- 50:38 – Challenging the Concept of Honeymoon Period
- 57:54 – The Power of Prompting and AI
- 58:05 – Enhancing Design Output With ChatGPT
- 1:01:09 – The Role of the Engineer
- 1:08:42 – Kevin King’s Words of Wisdom
Enjoy this episode? Want to be able to ask questions to Kevin King live in a small group with other 7 and 8-figure Amazon sellers? Join the Helium 10 Elite Mastermind and get monthly workshops, training, and networking calls with Kevin at h10.me/elite
Make sure to subscribe to the podcast on iTunes, Spotify, or wherever you listen to our podcast!
Want to absolutely start crushing it on eCommerce and make more money? Follow these steps for helpful resources to get started:
- Get the Ultimate Resource Guide from Kevin King for tools and services that he uses every day to dominate on Amazon!
- New to Selling on Amazon? Freedom Ticket offers the best tips, tricks, and strategies for beginners just starting out! Sign up for Freedom Ticket.
- Trying to Find a New Product? Get the most powerful Amazon product research tool in Black Box, available only at Helium 10! Start researching with Black Box.
- Want to Verify Your Product Idea? Use Xray in our Chrome extension to check how lucrative your next product idea is with over a dozen metrics of data! Download the Helium 10 Chrome Extension.
- The Ultimate Software Tool Suite for Amazon Sellers! Get more Helium 10 tools that can help you optimize your listings and increase sales for a low price! Sign up today!
- Does Amazon Owe YOU Money? Find Out for FREE! If you have been selling for over a year on Amazon, you may be owed money for lost or damaged inventory and not even know it. Get a FREE refund report to see how much you’re owed!
- Check out our other Amazon FBA podcasts including the Serious Sellers Podcast, as well as our Spanish and German versions!
- You can also listen to the AM/PM Podcast on YouTube here!
The post #446 – Danny McMillan’s Insights on Adapting to Industry Shifts appeared first on AM/PM Podcast.
Letting Amazon customers know about my Free Shipping terms (FBM, Pro account)
Hi guys, a new fbm seller here, I have a professional account. I managed to set up my free shipping terms using a shipping template and everything works as intended except….my potential customers do not know that I am offering a free shipping over certain amount. I can’t include a sentence about my Free shipping offer in the title, or bullet points, I am not sure about product description, may be I can? I don’t want to violate Amazon’s policy. Anyway, my question is how my customers supposed to learn about my Free shipping if I am not allowed to announce it and Amazon does not say about it anywhere on the page, the only option is to add more items at the Checkout – I am not sure customers would be doing that trying to figure out how many more items to add to get the shipping free. I would be most grateful if you could share your thoughts on this please. Fbm sellers, how do you inform your potential customers about your free shipping offer? Or may be one can ask Amazon to do it? Thank you
submitted by /u/kievsufi
[link] [comments]
Letting Amazon customers know about my Free Shipping terms (FBM, Pro account)
Hi guys, a new fbm seller here, I have a professional account. I managed to set up my free shipping terms using a shipping template and everything works as intended except….my potential customers do not know that I am offering a free shipping over certain amount. I can’t include a sentence about my Free shipping offer in the title, or bullet points, I am not sure about product description, may be I can? I don’t want to violate Amazon’s policy. Anyway, my question is how my customers supposed to learn about my Free shipping if I am not allowed to announce it and Amazon does not say about it anywhere on the page, the only option is to add more items at the Checkout – I am not sure customers would be doing that trying to figure out how many more items to add to get the shipping free. I would be most grateful if you could share your thoughts on this please. Fbm sellers, how do you inform your potential customers about your free shipping offer? Or may be one can ask Amazon to do it? Thank you
submitted by /u/kievsufi
[link] [comments]
Daily Dose of Return Fraud
I recieved a return request 7 days ago that was auto authorized for a camera I sold for $500
The buyer purchased this item on 4/11/2025 and opened a return request stating “Item defective or does not work” on 5/1/2025 (3 weeks later).
I received the return back today and the item camera was indeed broken. This was a new – open box unit that was sold in MINT condition. It arrived back to me covered in dirt, deep scratches on the body, and tons of dust and dirt in the lens glass. In other words, heavily heavily used and non-resellable.
My immediate reaction was “switcharoo” and I stared hunting for differences between the original unit we shipped and the unit returned.
Every crevice of the camera had light colored dirt in it, almost like it was dropped in desert sand, the lens had a large amount of dirt in the interior glass, 2 chips in the lens glass, and 2 large scuffs on the barrell of the lens.
I found screws that hold the camera body together are not aligned in the same way they were shipped in and clearly have some marks from a small screwdriver being used on them. I take photos before shipping items out.
The serial number sticker matches but has wear and tear that I cannot decide are from serial number sticker swapping or damage from a drop. I am leaned towards this not being swapped as I do not think you’d be able to get it back on cleanly, it does not seem misaligned either.
Research on the buyer shows they are a professional photographer. Do I charge a 50% restocking fee and eat the loss or go for a 100% restocking fee since the camera was clearly opened up and tampered with?
submitted by /u/Peppaire
[link] [comments]
Daily Dose of Return Fraud
I recieved a return request 7 days ago that was auto authorized for a camera I sold for $500
The buyer purchased this item on 4/11/2025 and opened a return request stating “Item defective or does not work” on 5/1/2025 (3 weeks later).
I received the return back today and the item camera was indeed broken. This was a new – open box unit that was sold in MINT condition. It arrived back to me covered in dirt, deep scratches on the body, and tons of dust and dirt in the lens glass. In other words, heavily heavily used and non-resellable.
My immediate reaction was “switcharoo” and I stared hunting for differences between the original unit we shipped and the unit returned.
Every crevice of the camera had light colored dirt in it, almost like it was dropped in desert sand, the lens had a large amount of dirt in the interior glass, 2 chips in the lens glass, and 2 large scuffs on the barrell of the lens.
I found screws that hold the camera body together are not aligned in the same way they were shipped in and clearly have some marks from a small screwdriver being used on them. I take photos before shipping items out.
The serial number sticker matches but has wear and tear that I cannot decide are from serial number sticker swapping or damage from a drop. I am leaned towards this not being swapped as I do not think you’d be able to get it back on cleanly, it does not seem misaligned either.
Research on the buyer shows they are a professional photographer. Do I charge a 50% restocking fee and eat the loss or go for a 100% restocking fee since the camera was clearly opened up and tampered with?
submitted by /u/Peppaire
[link] [comments]
Toys safety specifications
Seeking everyones help with this.
Firstly I want to start selling under this said category: Toys & Games > Stuffed Animals & Plush Toys. Is this specific category gated? And If so what are my actions as a seller to ungate said category, who wants to bring my own product onto the market?
Going further with gating and safety specifications. What is the main difference between gating and compliance? How frequently is CPC needed when dealing with compliances? How consistently or on what occasions does the product have to be tested for CPSIA and ASTM F963-17?
submitted by /u/xjjjww18
[link] [comments]
Toys safety specifications
Seeking everyones help with this.
Firstly I want to start selling under this said category: Toys & Games > Stuffed Animals & Plush Toys. Is this specific category gated? And If so what are my actions as a seller to ungate said category, who wants to bring my own product onto the market?
Going further with gating and safety specifications. What is the main difference between gating and compliance? How frequently is CPC needed when dealing with compliances? How consistently or on what occasions does the product have to be tested for CPSIA and ASTM F963-17?
submitted by /u/xjjjww18
[link] [comments]
