Amazon FBA vs FBM: Understanding the Fee Differences
FBA vs FBM: The Basics
When selling on Amazon, you choose: FBA (Fulfillment by Amazon handles storage/shipping) or FBM (you handle fulfillment).
FBA Fees Explained
Referral Fees
Both FBA and FBM sellers pay category-based fees, typically 8-15% of sale price.
FBA Fulfillment Fees
Amazon picks, packs, ships your orders. Varies by: product size tier, weight, time of year.
Standard 1-lb example: Small $3.22, Large $4.75
Storage Fees
Monthly charges based on cubic feet: January-September $0.87/ft³, October-December $2.40/ft³
Long-Term Storage Fees
Items over 365 days: $6.90/ft³ or $0.15/unit (greater applies)
FBM Fees Explained
Referral Fees
Same category-based percentage as FBA.
Shipping Credits
Amazon provides credit based on category. Keep difference if actual shipping is lower.
No Fulfillment/Storage Fees
But factor in: shipping supplies, carrier costs, storage space, packing labor.
When FBA Makes Sense
High-volume products, Prime eligibility important, lacking storage/shipping, fast shipping expected.
When FBM Makes Sense
Large/heavy items, slow-moving inventory, special handling, existing fulfillment operations.
Real-World Comparison
Book at $15:
FBA: $2.25 referral + $3.22 fulfillment + $0.05 storage = $5.52
FBM: $2.25 referral + $3.50 shipping + $0.50 supplies = $6.25
FBA actually cheaper while providing Prime benefits.
Conclusion
Neither universally better. Right choice depends on products, volumes, capabilities.