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FBA vs FBM Calculator

Compare FBA and FBM fulfillment costs side by side. See which fulfillment method is more profitable for your specific product.

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Product Details (Shared)

$

Your listed price on Amazon

$

Cost to purchase or manufacture

%

Usually 15% for most categories

FBA Costs

$

Amazon's pick, pack, and ship fee per unit

$

Monthly inventory storage fee per unit

FBM Costs

$

Your cost to ship one order to customer

$

Boxes, tape, labels, inserts, etc.

$

Pick, pack, and ship labor per unit

$

Total monthly rent / storage cost

Used to calculate warehouse cost per unit

Enter your numbers and click Compare to see results

How This Works

This calculator compares the two main Amazon fulfillment methods to help you decide which is more profitable for your product.

FBA (Fulfillment by Amazon) — Amazon handles storage, picking, packing, and shipping. You pay FBA fulfillment fees and monthly storage fees, but your products qualify for Prime and Amazon handles customer service for fulfillment issues.

FBM (Fulfillment by Merchant) — You handle everything yourself. Your costs include shipping to the customer, packaging materials, labor for pick-and-pack, and warehouse rent. The per-unit warehouse cost decreases as your volume increases.

Break-even volume is the monthly unit count at which FBM's per-unit cost (including warehouse overhead) equals FBA's per-unit cost. Below that volume, FBA is cheaper because the fixed warehouse cost is spread over fewer units. Above it, FBM becomes cheaper.

Both methods charge the same Amazon referral fee (typically 15% of the selling price). The key difference is in fulfillment costs: FBA charges a flat fee per unit, while FBM costs vary based on your shipping rates, labor efficiency, and volume.

Frequently Asked Questions

FBA (Fulfillment by Amazon) means Amazon stores, picks, packs, and ships your products. FBM (Fulfillment by Merchant) means you handle storage, packing, and shipping yourself. FBA generally costs more per unit in fees but saves you time and qualifies for Prime. FBM gives you more control and can be cheaper at higher volumes.
FBA is typically better for small, lightweight products with good margins, sellers who want Prime eligibility, low-volume sellers who can't justify warehouse costs, and products with fast turnover that won't incur long-term storage fees.
FBM is often better for large or heavy items where FBA fees are high, high-volume sellers who can spread warehouse costs across many units, products with slow turnover that would incur long-term FBA storage fees, and sellers who already have an efficient fulfillment operation.
Yes, through the Seller Fulfilled Prime (SFP) program. However, SFP has strict requirements including same-day or one-day shipping, a 99% on-time delivery rate, and a cancellation rate below 0.5%. Most small sellers find it difficult to meet these standards.
For FBA: long-term storage fees (after 181 days), removal/disposal fees, and inbound shipping to Amazon warehouses. For FBM: customer service time, return processing, shipping supplies, insurance, and the cost of your time managing logistics. This calculator covers the main per-unit costs but be sure to account for these extras.
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