Amazon FBA vs FBM
Published August 3, 2026
Quick answer
The referral fee is identical either way, so the decision comes down to one comparison: Amazon's fulfillment fee against your own pick, pack and postage cost. FBA also buys Prime eligibility, which usually lifts conversion enough to justify a modest cost premium. FBM wins when you ship cheaply, sell slowly, or handle oversized items.
Start with the cost comparison
Work out what it genuinely costs you to fulfil one order: packaging, postage, and the time it takes. Compare that with Amazon's published fulfillment fee for your size tier, plus the 3.5% surcharge and storage. If your own cost is meaningfully lower, FBM is the cheaper route and the rest of the decision is about conversion, not cost.
Then price in Prime
Prime eligibility is the real product FBA sells. For many categories it materially increases conversion and eligibility for the Buy Box, which can outweigh a higher per-unit cost. There is no universal number for this, which is why the honest approach is to test a single SKU both ways rather than reason about it in the abstract.
Where FBM clearly wins
Slow-moving inventory, because FBA storage charges accrue monthly and long-term surcharges bite after 365 days. Oversized or heavy items, where fulfillment fees climb steeply. And anything fragile or customised where you would rather control packing yourself.
Frequently asked questions
Do FBA and FBM pay the same referral fee?
Yes. The referral fee is a percentage of the sale price and is charged regardless of who fulfils the order, so it cancels out of the comparison entirely.
Is FBA worth it for slow-moving products?
Usually not. Storage is charged monthly and long-term surcharges apply past 365 days, so inventory that sits accumulates cost that merchant fulfilment avoids.
Can I use both FBA and FBM?
Yes, and many sellers do. It is common to run fast-moving, compact products through FBA while fulfilling bulky or slow items yourself.