How to compare FBA and FBM
- Enter the selling price, your landed product cost and the referral fee — these are the same for both methods.
- Under FBA, enter the fulfillment fee from Amazon’s Revenue Calculator, monthly storage per unit and the cost of shipping each unit to Amazon.
- Under FBM, enter what a shipping label costs you, your packaging and labour per order, and any shipping you charge the buyer.
- Compare profit per unit and margin side by side.
FBA vs. FBM at a glance
| FBA (Fulfillment by Amazon) | FBM (Fulfilled by Merchant) | |
|---|---|---|
| Who ships | Amazon picks, packs, ships and handles returns and customer service | You (or your 3PL) ship each order |
| Prime badge | Yes, automatically | Only through Seller Fulfilled Prime, with strict requirements |
| Main costs | Fulfillment fee, storage, inbound shipping, prep | Shipping labels, packaging, labour, storage space |
| Buy Box & conversion | Usually stronger thanks to Prime | Can compete on price and handling time |
| Best for | Small, light, fast-moving products | Large, heavy, slow-moving, high-value or custom products |
Profit isn’t the only factor
FBM often looks cheaper on paper, especially for heavy or bulky items. But FBA listings usually convert better because of the Prime badge and fast, free delivery, so the same advertising produces more sales. Many sellers use a hybrid approach: FBA for best-sellers, FBM for slow movers, oversize items and as a backup when FBA stock runs out.
Hidden costs to remember
- FBA: aged-inventory surcharges, low-inventory-level fees, inbound placement fees, removal and disposal fees, and — since January 2026 in the US — your own prep and labelling, because Amazon no longer offers FBA prep services.
- FBM: your time, warehouse space, returns handling, and the risk to account health if you miss shipping deadlines or valid-tracking-rate targets.
Frequently asked questions
Is FBA or FBM more profitable?
It depends on the product. FBA usually wins for small, light, fast-selling items. FBM often wins for heavy, oversized or slow-moving items. Use the calculator with your own numbers.
Does FBM pay the same referral fee?
Yes. The referral fee is the same for FBA and FBM. With FBM it is also charged on any shipping you charge the buyer.
Can I use both FBA and FBM?
Yes. Many sellers list the same product with both, using FBM as a backup when FBA stock runs low.
Does this include the 2026 fuel surcharge?
Yes — tick the box to add the 3.5% surcharge that applies to FBA fulfillment fees from 17 April 2026.