Amazon FBA vs FBM: Which Fulfilment Method Earns More?
By Saurabh Pandey · Updated · 3 min read
On this page
Should Amazon ship your orders, or should you? That is the Amazon FBA vs FBM decision every seller faces. With FBA (Fulfilled by Amazon), you send stock to Amazon's warehouses and Amazon picks, packs, ships and handles returns. With FBM (Fulfilled by Merchant), you store products and ship each order yourself.
Neither is always cheaper. This guide compares the real costs and shows how to work out which earns more for your product.
What each method costs
| Cost | FBA | FBM |
|---|---|---|
| Referral fee | Yes (usually 15%) | Yes (usually 15%) |
| Selling plan ($39.99/month Professional) | Yes | Yes |
| Fulfilment | Amazon's FBA fee per unit, by size and weight | Your postage, packaging and time |
| Fuel & logistics surcharge | 3.5% of the FBA fee (since April 2026) | No (but carriers have their own surcharges) |
| Storage | Monthly storage fees, higher in Q4 | Your own space |
| Getting stock to Amazon | Inbound shipping and placement fees | None |
| Returns | Handled by Amazon (fees in some categories) | You handle them |
| Prime badge | Yes, automatically | Only via Seller Fulfilled Prime |
Worked example: a $25 item weighing 12 oz
A product sells for $25 in a 15% category. It costs you $6. It is a large standard-size item weighing 12 oz. You sell 100 a month on the Professional plan.
FBA (non-peak rates)
- Referral fee: 15% × $25 = $3.75
- FBA fulfilment fee: $4.20
- Fuel and logistics surcharge (3.5%): $0.15
- Professional plan per unit: $0.40
- Total Amazon fees: $8.50 → profit after the $6 product cost: $10.50
FBM (you ship it)
- Referral fee: $3.75
- Professional plan per unit: $0.40
- Your postage: $5.50, packaging: $0.50
- Total costs except the product: $10.15 → profit: $8.85
Here FBA earns $1.65 more per unit, before storage and inbound fees. But if you could ship the same parcel for $3.50 including packaging, FBM would win. The tipping point is roughly where your own shipping and packaging cost equals Amazon's FBA fee plus surcharge, minus any storage and inbound costs per unit.
Put your own product into both modes:
Amazon FBA Fee Calculator
Open full calculatorFee breakdown
Enter your selling price to see Amazon's fees.
When FBA usually wins
- Small, light products that fall into cheap FBA size tiers.
- Fast-selling items, where storage fees per unit are tiny.
- Products where Prime matters. The Prime badge and fast delivery usually raise conversion rates and help you win the Buy Box.
- Sellers who value time. FBA removes daily packing, shipping and most customer service.
When FBM usually wins
- Heavy or oversized items, where FBA fees and storage are high.
- Slow sellers, which pile up storage fees month after month, including higher Q4 storage rates.
- Handmade, personalised or made-to-order products.
- Sellers with cheap shipping, such as discounted carrier rates or local fulfilment centres.
- Low-margin items where every cent counts.
Don't forget peak season
Amazon charges higher holiday peak FBA fees from 15 October to 14 January. For our 12 oz example, the fulfilment fee rises from $4.20 to $4.48 per unit. Storage fees also rise in the last quarter. Recheck your FBA profit before peak season, especially on cheap items.
The hybrid approach
Many sellers use both:
- FBA for best-sellers and small items, FBM for slow movers and bulky items.
- FBM as a backup when FBA stock runs out, so the listing never goes inactive.
- FBM for new products until sales prove they are worth sending to Amazon.
How to decide in four steps
- Weigh and measure each product in its packaging, and find its FBA size tier.
- Get real shipping quotes for FBM, including packaging. Our dimensional weight calculator shows what carriers will bill.
- Estimate monthly sales, then storage cost per unit.
- Compare profit per unit in the Amazon FBA calculator using FBA and FBM, then add the value of your time.
The bottom line
Compare FBA and FBM product by product, not for your whole catalogue. Use real shipping quotes, include storage and your time, and recheck before peak season. Read Amazon FBA fees explained and Amazon referral fees by category for the details.
Fees in this guide were checked against Amazon's US selling and FBA fee pages in October 2026.
Frequently asked questions
Is FBA or FBM more profitable?
It depends on the product. FBA is usually more profitable for small, light, fast-selling items because Amazon's fulfilment rates are hard to beat and Prime lifts sales. FBM is often better for heavy, bulky, slow-selling or made-to-order products.
Do FBM sellers pay referral fees?
Yes. Referral fees apply to all Amazon sales. With FBM the fee is charged on the total sales price, including any shipping you charge.
Can I use FBA and FBM at the same time?
Yes. You can fulfil some products with FBA and others yourself, or even offer the same product both ways.
What fees does FBA add?
FBA adds a fulfilment fee per unit based on size and weight, the 3.5% fuel and logistics surcharge, monthly storage fees, inbound placement fees and, in some categories, returns processing fees.