With Fulfillment by Amazon (FBA), you send stock to Amazon, which packs and ships orders and handles customer service and returns. With Fulfillment by Merchant (FBM), you store, pack and ship orders yourself. As of October 2026, both models require a selling plan, and Amazon lists the Professional plan at $39.99 a month plus selling fees. FBA fees depend on size, weight and how long stock sits.
You do not have to pick one for your whole catalog. Amazon says you can use FBA, FBM or both, chosen product by product.
What is the difference between FBA and FBM?
According to Amazon’s seller site, FBA outsources packing, shipping, customer service and returns. Your inventory sits in Amazon’s network, and you pay per unit and per order. With FBM, per Amazon’s fulfillment by merchant page, you ship orders from your own space, set your handling time and transit time, confirm shipment with tracking and answer return requests that need review within 24 hours.
What does each model cost?
The two Amazon pages we read do not publish a per-unit FBA fee table, so check Amazon’s current schedule before deciding. What they confirm:
- FBA: storage and fulfillment are charged per unit and per order, based on size, weight and dimensions, how long inventory is stored, returns processing and customer service.
- FBM: costs depend on your own process and any delivery partners. Amazon says Buy Shipping rates are on average over 31% lower than retail ground rates for UPS, FedEx and USPS. That is Amazon’s claim, so compare against your own carrier quotes.
- Both: the Professional selling plan is $39.99 a month plus selling fees.
Amazon points sellers to its Revenue Calculator to compare FBA profit with fulfilling in-house. Use it with your real product weight and dimensions.
How does Prime work in each model?
FBA enables fast, free Prime shipping and the Prime badge in search results. FBM sellers can apply for Seller Fulfilled Prime, which shows the badge on self-fulfilled listings. Per Amazon, it requires a Professional account, meeting performance requirements and completing a 30-day trial. The pages do not list the exact thresholds.
Amazon also describes Buy with Prime, which puts the Prime logo and delivery promise on your own website, and says it has increased conversions by an average of 25%. Treat that as a vendor claim.
What happens with returns and customer service?
With FBA, Amazon handles customer service and returns. With FBM, you handle them yourself or through a provider, which gives you more direct control and more work. If you sell on several channels, Amazon’s Multi-Channel Fulfillment extends FBA to orders from your own site and other marketplaces.
Who should use FBA, and who should use FBM?
Amazon’s own guidance, which we read as favorable to its program, puts it this way:
- FBA suits sellers who want a hands-off model, plan to scale, sell steady volumes or want the Prime badge and a better shot at the Featured Offer (the Buy Box).
- FBM suits sellers who want custom packaging or notes, need direct access to inventory, handle special items or run a smaller operation. FBM also avoids FBA product restrictions.
In our view, the deciding factor is rarely the badge. It is how fast the product sells and how much margin is left after fees.
How to decide in 5 steps
- Record real weight and dimensions for each product.
- Get a shipping quote for doing it yourself, including packaging and your time.
- Run the same product through Amazon’s Revenue Calculator for FBA.
- Compare profit per unit after the referral fee, fulfillment or shipping, and storage for the time stock will realistically sit.
- Choose per product. Amazon suggests starting with small, lightweight, high-turnover, high-margin items, and we agree that is the safest test.
For how to price once you have the numbers, see how to price products to sell online, and for the platform’s fee structure, Amazon seller fees.
Common mistakes
- Judging FBA only by the Prime badge and not by per-unit fees.
- Sending a large batch before testing one product.
- Forgetting storage time: stock that does not sell keeps costing money and ties up cash.
- Comparing FBA with FBM without counting your own packing time and returns handling.
Who FBA is not for
It is a weak fit for bulky or odd-shaped items, very cheap products with thin margins, slow sellers and anyone who cannot tie up cash in inventory. Amazon’s own pages note that costs vary with size and weight. In those cases, start with FBM and revisit later.
Frequently asked questions
Can I use FBA and FBM at the same time?
Yes. Amazon says you can use FBA, FBM or a mix, and choose per product.
Does FBM mean no Prime badge?
Not necessarily. Seller Fulfilled Prime can show the badge on self-fulfilled listings, but it requires a Professional account, meeting performance requirements and a 30-day trial.
Which model has lower Amazon fees?
The pages we read do not give a side-by-side number. FBA adds per-unit fulfillment and storage fees, while FBM costs depend on your own shipping. Run both in the Revenue Calculator.
Is the Professional plan required?
Amazon recommends it for FBM and lists it at $39.99 a month plus selling fees. Seller Fulfilled Prime requires it.
