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!
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