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FBM gives you operational control, but you really lose that conversion boost if you can't maintain SFP (Seller Fulfilled Prime) status. Buyers expect that two-day badge, and managing late shipment rates during winter storms when you are doing self-fulfillment is a nightmare for your metrics.
Switching our bulkier products over to FBM completely saved our Q4 margins this past year. With Amazon adding new inbound placement fees and tightening storage limits, handling our own shipping via discounted UPS rates allowed us to keep full control of our inventory without paying outrageous storage penalties.
Debates whether Merchant Fulfillment (FBM) offers better margin control compared to FBA when dealing with rising Amazon storage fees, inbound placement costs, and inventory capacity caps.