Fee comparison

Amazon FBA vs Amazon FBM: Fees Compared

Compare the fee structures of Amazon FBA and Amazon FBM side by side to find which platform gives you better margins.

All calculatorsAmazon FBA vs Amazon FBM

Key differences

Amazon FBA vs Amazon FBM: What's Different?

FBA (Fulfilled by Amazon) and FBM (Fulfilled by Merchant) are two fulfillment methods on the same marketplace. Both pay identical referral fees (8-20%, 15% for most categories), but FBA adds fulfillment fees ($3.32+ for most standard items, from $2.43 for items priced under $10, scaling with size and weight), monthly storage fees ($0.78-$2.40/cubic foot), and potential long-term storage surcharges. FBM sellers handle their own shipping, storage, and customer service.

On a pure Amazon fee basis, FBM is cheaper. You avoid all FBA fulfillment and storage charges. However, FBM sellers must account for their own shipping costs (postage, packaging, labor), warehouse/storage space, and customer service time. When you factor in the true cost of self-fulfillment, the difference narrows significantly. For sellers shipping fewer than 20-30 orders per day, FBM can be more cost-effective. At higher volumes, FBA's economies of scale often win.

Beyond cost, FBA provides critical advantages: Prime badge eligibility (dramatically improving conversion rates), Buy Box preference, hands-off returns processing, and two-day shipping that most FBM sellers can't match. FBM sellers retain more control over packaging, branding inserts, and shipping timelines. The choice often comes down to whether the Prime badge's conversion boost is worth FBA's additional fees.

Compare Fees on the Same Product

Enter your product details once, see how fees compare on both platforms

Enter Product Details (same product, both platforms)

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Amazon FBA

Total Fees$8.60

Profit

$9.39

31.3% margin

Amazon FBM

Lower fees
Total Fees$4.50

Profit

$13.49

45.0% margin

Amazon FBM saves you $4.10 in fees per sale

Estimates are based on item price only. Marketplaces may also apply fees to buyer-paid shipping and tax, and rates vary by category and promotions. Confirm current rates with each marketplace.

Fee Structure Comparison

Fee typeAmazon FBAAmazon FBM
Referral / commission15%15%
Payment processingIncludedIncluded
Fulfillment fee$3.32N/A
Monthly subscriptionNoneNone
Listing feeNoneNone
Scenarios

Which Is Better For...

Best for winning the Buy Box

Amazon FBA

Amazon's algorithm gives FBA sellers a significant advantage in Buy Box placement. The Prime badge signals fast, reliable shipping, which Amazon prioritizes. FBM sellers can win the Buy Box but need competitive pricing and excellent seller metrics. For competitive product categories, FBA's Buy Box advantage directly translates to more sales.

Best for oversized or heavy items

Amazon FBM

FBA's fees for oversized items are steep. Large items can incur $10-$40+ in fulfillment fees per unit. For heavy, bulky products like furniture or equipment, FBM often makes more sense financially. You can negotiate better shipping rates directly with carriers for large items than what FBA charges.

Best for slow-moving or seasonal inventory

Amazon FBM

FBA charges monthly storage fees that increase during Q4, plus long-term storage surcharges for items sitting longer than 180 days. If your products sell slowly or are highly seasonal, FBM avoids these holding costs. You can store inventory in your own space without per-cubic-foot charges.

Frequently Asked Questions

Yes. Many sellers use a hybrid approach: FBA for fast-selling SKUs to maintain Prime eligibility and Buy Box advantage, and FBM for slow-moving, oversized, or low-margin items. You can even list the same ASIN with both FBA and FBM offers simultaneously.

FBA fees depend on size, weight, and now item price. A small, lightweight item (under 1 lb, small standard size) costs about $3.32 in fulfillment fees, or around $2.43 if the item is priced under $10. A 2 lb standard-size item costs roughly $5.82. Large or heavy items can cost $9.35-$40+. Add monthly storage ($0.78-$2.40/cubic foot) and your true per-unit FBA cost becomes clear.

Standard FBM sellers do not get the Prime badge. However, Seller Fulfilled Prime (SFP) allows qualified FBM sellers to display the Prime badge if they meet strict shipping speed and performance requirements. SFP enrollment is periodically open and requires consistently meeting one-day and two-day delivery standards.

FBA handles returns automatically but charges return processing fees for certain categories (apparel, shoes, etc.). FBM gives you more control over the returns process. You can inspect items, offer partial refunds, or handle exchanges directly. For high-return categories like clothing, the return processing economics should factor into your FBA vs FBM decision.

Amazon charges long-term storage surcharges for inventory stored over 180 days. Items stored 181-270 days incur a surcharge of $1.50/cubic foot. Items stored 271-365 days cost $3.80/cubic foot. Items beyond 365 days cost $6.90/cubic foot or $0.15/unit, whichever is greater. These fees can devastate margins on slow-selling products.

More Fee Comparisons

Fees are only one leak. Our guide to ecommerce accounting covers COGS, settlements, and the P&L that shows what you actually keep per sale.

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