Are you unsure which fulfillment method to choose: Amazon FBA vs FBM in Canada? Both options offer unique benefits that can help you reach customers faster and grow your brand in the Canadian market.
One of the first major decisions you’ll make when selling on Amazon Canada is whether to go with FBA or FBM. By understanding how each fulfillment model works, you can build a strategy that supports your business goals and product type.
That’s why it’s important to learn about both options before committing to one. Each method affects your costs, control, and customer experience differently, so knowing the trade-offs helps you make smarter decisions.
This article breaks down everything you need to know about Amazon FBA vs FBM in Canada, from how each fulfillment method works to its pros and cons. It also covers all the key differences Canadian sellers should understand to choose the right strategy for their business.
Table of Contents
Ready to Scale on Amazon Canada?
Partner with our experts to streamline fulfillment, boost performance, and grow sustainably.
What Sellers Need to Know About Amazon FBA in Canada
Amazon FBA Canada, or Fulfillment by Amazon, is a service through which sellers send their products to Amazon’s fulfillment centers across Canada. Amazon then takes care of the heavy lifting, including storage, packing, shipping, customer service, and returns, so sellers can focus on growing their business.
Here’s how it works: once you create a Seller Central account, you list your products and mark them as FBA. After preparing and shipping your inventory to Amazon’s warehouses, Amazon stores your items and automatically fulfills customer orders, charging fees based on size, weight, and handling requirements.
Pros of Amazon FBA Canada
About 95% of Canadian Amazon sellers use FBA because it offers several major advantages that simplify their operations and boost sales. Here are the top reasons why so many sellers rely on Amazon FBA Canada:
- Amazon handles storage, packing, shipping, and returns.
- Amazon FBA Canada listings automatically qualify for Prime.
- Fast, reliable nationwide shipping through Amazon’s network.
- Customers trust Amazon FBA Canada products, increasing conversions.
- Amazon manages all customer service and returns.
- Easy to scale without your own warehouse or staff.
Cons of Amazon FBA Canada
Although Amazon FBA Canada brings plenty of advantages to sellers, it also comes with drawbacks that every seller should consider to protect their profit margins and long-term growth. Here are the most common challenges associated with it:
- High fulfillment and storage fees can quickly reduce profit margins.
- Amazon limits your control over inventory, shipping, and returns.
- Branding flexibility is restricted, making it harder to build customer loyalty.
- Amazon’s return policies can lead to lost or damaged products.
- Sellers don’t have access to customer data for remarketing.
- Competition is tough, especially when Amazon sells similar products.
What Sellers Need to Know About Amazon FBM in Canada
Amazon Canada FBM, or Fulfilled by Merchant, is a fulfillment method where sellers manage their own storage, packaging, and shipping instead of using Amazon’s fulfillment centers. This means sellers have full control over their inventory, customer service, and delivery process within Canada or across borders.
Here’s how it works: when a customer places an order, the seller receives it through Seller Central, packs the item, and ships it directly to the buyer using their preferred courier. The seller is also responsible for updating order tracking, managing returns, and maintaining strong performance metrics to stay in good standing with Amazon.
Pros of Amazon FBM Canada
While Amazon FBA offers convenience and scalability, many sellers still prefer FBM for the control and flexibility it provides. Interestingly, 28% of FBM sellers earn over $25,000 per month, compared to just 12% of FBA sellers, proving that managing your own fulfillment can also be highly profitable.
- Full control over storage, packaging, and shipping.
- Allows custom branding and personalized packaging.
- Avoids FBA’s storage and fulfillment fees.
- Ideal for oversized, fragile, or made-to-order products.
- Freedom to set shipping policies and choose carriers.
- Works well with FBA in a hybrid fulfillment strategy.
Cons of Amazon FBM Canada
Just like how FBA has its downsides, FBM also comes with a few challenges that sellers need to manage carefully. Here are the most common drawbacks of using Amazon FBM in Canada:
- Higher workload since sellers handle all fulfillment.
- Slower and costlier shipping without Amazon’s network.
- No automatic Prime eligibility, reducing visibility.
- Manual storage and inventory tracking take time.
- Shipping mistakes can hurt performance and reviews.
- Harder to win the Buy Box against FBA competitors.
Not Sure Which Fulfillment Path to Take?
Get expert advice on whether FBA, FBM, or a hybrid setup is right for your business goals.
Amazon FBA vs FBM in Canada: Key Differences
FBA and FBM are two different fulfillment methods that give sellers unique levels of control and convenience. Understanding their key differences helps sellers decide which option aligns better with their business goals, product type, and operational capacity.
| Factor | Amazon FBA Canada | Amazon FBM Canada |
|---|---|---|
|
Inventory Storage |
Stored in Amazon’s Canadian fulfillment centers. |
Stored by the seller or through a third-party warehouse. |
|
Order Fulfillment |
Amazon handles picking, packing, and shipping. |
Seller manages fulfillment from start to finish. |
|
Shipping Speed |
Fast Prime-eligible delivery across Canada. |
Depends on the chosen courier and location. |
|
Customer Service & Returns |
Amazon manages customer service and returns. |
Seller handles all customer inquiries and returns. |
|
Fees & Costs |
Includes storage and fulfillment fees. |
Seller pays for storage, packaging, and shipping. |
|
Control & Flexibility |
Limited control over packaging and branding. |
Full control over packaging, branding, and delivery. |
|
Prime Eligibility |
Automatically eligible for Prime. |
Must qualify for Seller Fulfilled Prime. |
|
Buy Box Advantage |
Higher chance due to Prime eligibility and fast shipping. |
Lower chance unless pricing and performance are competitive. |
|
Time Commitment |
Minimal: Amazon manages fulfillment operations. |
High: seller handles daily logistics and support. |
|
Scalability |
Easy to scale with Amazon’s network. |
Scaling depends on the seller’s own logistics capacity. |
1. Inventory Storage
Under Amazon FBA Canada, sellers send their products in bulk to Amazon’s fulfillment centers across the country, where Amazon manages all storage and organization. This setup removes the need for warehouse space but adds storage and long-term inventory fees.
In contrast, Amazon FBM Canada requires sellers to store their own inventory, whether at home, in a rented facility, or through a third-party logistics partner. This option gives more flexibility but also means extra responsibility for storage costs and inventory management.
2. Order Fulfillment
Through FBA Canada, Amazon oversees every stage of fulfillment, from picking and packing to shipping orders directly to customers. This ensures fast, reliable delivery throughout Canada with minimal seller involvement.
By comparison, FBM Canada sellers take full control of their fulfillment process from start to finish. While that independence allows for a hands-on approach, it can also demand more time and effort, especially when managing large order volumes.
3. Shipping Speed
FBA Canada provides access to Amazon Prime’s two-day shipping, one of the biggest advantages for Canadian shoppers. Products stored in Amazon’s fulfillment network consistently reach customers faster, improving satisfaction and conversions.
Meanwhile, FBM Canada sellers rely on carriers like Canada Post or UPS to deliver orders. Because delivery speed depends on distance, weather, and carrier reliability, meeting customer expectations can be more challenging.
4. Customer Service and Returns
With FBA Canada, Amazon handles all customer inquiries, returns, and refunds for orders fulfilled through their centers. This reduces workload and ensures customers receive standardized support in line with Amazon’s policies.
FBM Canada sellers must manage customer service independently. This means personally handling complaints, returns, and inquiries, which can take more time but allows for a more personalized approach to customer care.
5. Fees and Costs
When using Amazon FBA Canada, sellers pay storage, fulfillment, and optional removal fees that vary depending on product size, weight, and how long inventory stays in storage. Although these fees can add up, the convenience and potential for higher sales often make the trade-off worthwhile.
On the other hand, Amazon FBM Canada sellers skip Amazon’s storage and fulfillment fees but take on their own costs for packaging, shipping, and warehousing. These expenses are often easier to predict, particularly for sellers who already have an efficient fulfillment setup.
6. Control and Flexibility
With FBA Canada, sellers have limited control over packaging and shipping since they must comply with Amazon’s strict preparation and labeling standards. While this setup simplifies logistics, it also restricts opportunities for branded packaging and a unique customer experience.
In FBM Canada, sellers have full authority over their fulfillment process from start to finish. They can personalize packaging, include inserts or thank-you notes, and choose shipping methods that better reflect their brand identity.
7. Prime Eligibility
All products fulfilled through Amazon FBA Canada automatically qualify for Prime shipping, which helps boost visibility and conversions among Prime subscribers. This is one of the strongest advantages of using FBA in Canada.
Amazon FBM Canada sellers don’t automatically get Prime eligibility. They must apply for Seller Fulfilled Prime and meet Amazon’s strict delivery standards, which can be challenging due to Canada’s large geographic area.
8. Buy Box Advantage
The Amazon Buy Box drives about 82% of all Amazon sales, making it a major factor in seller success. FBA Canada sellers have a higher chance of winning the Buy Box since Amazon prioritizes listings with fast delivery and Prime eligibility.
FBM Canada sellers can still win the Buy Box, but it demands competitive pricing, excellent performance metrics, and reliable shipping. Without Prime eligibility, it’s generally more challenging to achieve and maintain that visibility advantage.
9. Time Commitment
For sellers using Amazon FBA Canada, the workload is significantly reduced since Amazon takes care of storage, shipping, and returns. This allows business owners to spend more time on high-value tasks like marketing, product research, and catalog expansion.
In contrast, Amazon FBM Canada demands constant hands-on management, from packing and shipping orders to handling customer inquiries. While this can be time-consuming, it works well for sellers who prefer direct control or deal with smaller product volumes.
10. Scalability
One of the biggest strengths of Amazon FBA Canada is its scalability, enabling sellers to expand rapidly without the stress of managing fulfillment logistics. Amazon’s nationwide network supports business growth even during high-demand periods such as holidays or major sales events.
Meanwhile, Amazon FBM Canada’s scalability is tied to the seller’s ability to expand their logistics operations effectively. Sellers aiming to scale often need to invest in warehouse space, hire additional staff, or partner with third-party logistics providers to handle growing demand.
Which Amazon Fulfillment Method Fits Your Canadian Business Best?
Even when you already understand the differences between FBA and FBM in Amazon Canada, it can still be tricky to figure out which one actually works best for your business. Take this quick quiz to find out whether FBA, FBM, or a combination of both fits your goals and selling style.
FAQs About Amazon FBA vs FBM Canada
Make the Right Fulfillment Choice for Your Amazon Canada Business
Choosing between Amazon FBA and FBM is one of the most important decisions a seller can make. The fulfillment method you choose can shape how you manage operations, serve customers, and grow your brand in the Canadian marketplace.
That’s why understanding their differences is essential; each option offers distinct advantages that impact your pricing, logistics, and overall business strategy. This guide aims to help you make an informed decision so you can choose the fulfillment model that truly supports your goals.
Need help managing your Amazon FBA or FBM business in Canada? Get expert support from our full-service Amazon agency, and let us help you grow faster, smarter, and more profitably.
Simplify Fulfillment, Focus on Growth
Let our team handle your FBA or FBM operations so you can focus on scaling your brand faster.
