Detailed definition
FBA advantages: the Prime badge (higher conversion), the Amazon guarantee, customer service handled by Amazon. Disadvantage: high commission plus storage and long-term fees. The alternative is FBM (Fulfillment by Merchant) — you ship yourself for a lower commission. In general: FBA for high-conversion products, FBM for niche or bulky ones.
Examples
- A textile brand selling in the US market with the Prime badge through FBA sees a high ROI.