Amazon FBA vs FBM: Which Fulfilment Model Saves More Money?
Break down FBA storage fees, pick-pack charges, and FBM shipping costs to choose the right Amazon fulfilment strategy for your catalog.
🧮 Amazon Profit Calculator — Try it freeAmazon sellers face a critical decision: Fulfilment by Amazon (FBA) or Fulfilment by Merchant (FBM). FBA buys you Prime badge and trust; FBM keeps control and can win on thin-margin SKUs.
FBA Fee Components
- Referral fee: 6–17% by category
- FBA fulfilment fee: weight/size tier based
- Monthly storage: ₹40–₹70 per cubic ft (varies seasonally)
- Long-term storage: penalty after 365 days
- Returns processing: category dependent
When FBA Wins
FBA makes sense for fast-moving SKUs, Prime-eligible categories, and products under 1kg with healthy margins. The conversion lift from Prime often offsets fees.
When FBM Wins
Heavy/bulky items, slow movers, and highly customized products often profit more via FBM. You avoid storage fees and control packaging quality.
FBA vs FBM Cost Example (₹999 Product)
| Cost Item | FBA | FBM |
|---|---|---|
| Referral (12%) | ₹120 | ₹120 |
| Fulfilment/Shipping | ₹85 | ₹65 |
| Storage (monthly) | ₹15 | ₹0 |
| Total platform logistics | ₹220 | ₹185 |