When you sell on Amazon, you have two fulfillment choices:
- FBA (Fulfillment by Amazon) — Amazon stores, picks, packs, and ships your products
- FBM (Fulfillment by Merchant) — You store and ship products yourself
The right choice depends on your product size, sales volume, and margin. Here's how they compare in 2026.
FBA Costs (2026)
FBA includes seven distinct fees:
- Referral fee — 8–15% by category
- FBA fulfillment fee — pick & pack by size tier
- Inbound placement fee — distribution across FCs
- Low-inventory fee — surcharge when stock is low
- Storage fee — monthly, per cubic foot
- Aged inventory fee — items stored 181+ days
- Returns processing fee — customer returns
On a $29.99 Home & Kitchen item (15% referral, standard <1lb, $8.20 COGS), the FBA net is approximately $10.62/unit.
FBM Costs
FBM has fewer Amazon-specific fees but your own costs replace them:
- Referral fee — same 8–15% as FBA
- Your shipping cost — depends on weight, zone, and carrier
- Your packaging cost — boxes, tape, labels
- Your storage cost — warehouse rent or home space
- Your labor cost — time to pick, pack, and ship
On the same $29.99 item, with $4.50 shipping and $1.00 packaging, the FBM net is approximately $12.20/unit.
When FBA Wins
- Small, light products — low fulfillment fees
- High-volume products — Prime badge increases conversion
- Products sold year-round — storage cost is spread thin
- Low-touch operation — you focus on sourcing, Amazon handles logistics
When FBM Wins
- Large or heavy products — FBA fees multiply quickly
- Slow-moving inventory — FBA storage and aged fees add up
- High-margin products — you can absorb shipping costs
- Multi-channel selling — you already have warehouse infrastructure
See Your Specific Numbers
Our FBA vs FBM Profit Calculator compares both models side by side for your exact product. Enter the same selling price and COGS, then compare the net profit from each fulfillment method.