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.
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 (8-15%), but FBA adds fulfillment fees ($3.22+ for small standard items, 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)
Amazon FBA
Profit
$9.40
31.3% margin
Amazon FBM
Lower feesProfit
$13.49
45.0% margin
Amazon FBM saves you $4.09 in fees per sale
Fee Structure Comparison
Which Is Better For...
Best for winning the Buy Box
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
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
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.