Platform Overview
Private Label Overview
Private label involves creating your own brand with generic products from manufacturers. Builds asset value but requires more investment.
FBA Overview
FBA (retail arbitrage or wholesale) involves reselling existing branded products. Faster to start but builds no brand equity.
Fee Comparison
| Aspect | Private Label | FBA | Notes |
|---|---|---|---|
| Startup Cost | $5,000-$30,000 | $2,000-$15,000 | PL higher investment |
| Product Differentiation | Full (custom branding) | None | PL competitive advantage |
| Profit Margin | 30-60% | 20-40% | PL higher potential |
| Time to Market | 3-6 months | 1-2 months | FBA faster |
| Brand Equity | Yes | None | PL builds asset |
| Competition | Protected by brand | Not protected | FBA competitive |
| Listing Control | You control | Amazon/brand controls | PL advantage |
Our Recommendation
Private label builds long-term brand value with higher margins. FBA is faster to start with lower risk.
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 between Private Label and FBA.
- Use our Profit Calculator to estimate exact costs.
Key Takeaways
- Always calculate your total fees before listing â use our free calculator below.
- Consider your product category and selling volume when comparing platforms.
- Factor in fulfillment costs for an accurate profit comparison.
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.