Platform Overview
FBA Overview
FBA (Fulfillment by Amazon) handles storage, packing, shipping, and customer service. Sellers pay fees but gain Prime eligibility.
FBM Overview
FBM (Fulfilled by Merchant) requires sellers to handle all fulfillment. Lower costs but more time investment.
Fee Comparison
| Aspect | FBA | FBM | Notes |
|---|---|---|---|
| Storage Fees | $2.40-$7.20/cu ft | $0.00-$0.40/month | FBA expensive |
| Fulfillment Fees | $3.22-$7.18/item | Your cost + labor | FBA per-order cost |
| Prime Eligibility | Yes | No | FBA major advantage |
| Customer Service | Amazon handles | FBM seller handles | FBA convenience |
| Return Processing | Amazon handles | FBM seller handles | FBA easier |
| Shipping Speed | Fast (Prime) | Varies | FBA faster |
| Inventory Limits | Limited by category | Unlimited | FBM more flexible |
Our Recommendation
Choose FBA for time savings and Prime eligibility. Choose FBM for control and lower per-order costs on higher-margin items.
Key Takeaways
What to Consider
- Platform fees are only part of the equation — factor in fulfillment, shipping, and your time.
- Consider your product type and target audience when choosing the right platform.
- Use our Profit Calculator to estimate exact costs.
Frequently Asked Questions
Is Amazon more expensive than other marketplaces?
Amazon's referral fees (8-17% by category) are among the highest in ecommerce. However, FBA (Fulfillment by Amazon) bundles storage, picking, packing and shipping into one cost, which can work out cheaper than self-fulfillment for individual sellers. Compare total landed costs, not just listing fees.
What is the difference between FBA and FBM fees?
FBA (Fulfillment by Amazon) adds $3.22-$52.38 per unit in fulfillment fees on top of referral fees (8-17%). FBM (Fulfilled by Merchant) only pays referral fees but requires you to handle storage, picking, packing and shipping yourself. FBA is usually better for sellers doing 100+ orders/month.
Data Methodology & Disclaimer
Fee data and benchmarks in this article are sourced from official platform documentation and cross-referenced with publicly available rate schedules as of April 2026. Calculations use standard fee formulas; individual results vary based on product category and specific listing details.
Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or tax advice. Check the latest rates at each platform's official seller fees page. Fee structures reflect publicly available information as of April 2026 and are subject to change. Always verify current rates before making financial decisions.