Comparison Guide
FBA vs FBM Calculator: Which Model is Right for You?
Choosing between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) is the biggest logistics decision a seller makes. The wrong choice can cost you thousands in lost margin.
Our FBA vs FBM Calculator allows you to run a side-by-side cost analysis. Simply input your costs, and we will tell you which method puts more cash in your pocket.
When Does FBA Win?
FBA is usually the winner for products that are:
- Small & Light: Amazon’s logistics network is unbeatable for items under 2 lbs.
- High Turnover: If you sell fast, storage fees won’t hurt you.
- Need Prime: FBA automatically gets the “Prime” badge, boosting conversion rates by 3x-5x.
When Does FBM Win?
Merchant Fulfillment (FBM) often wins for:
- Heavy/Oversize Items: FBA fees skyrocket for large items. Shipping them yourself via FedEx/UPS ground can be cheaper.
- Slow Movers: Avoid Amazon’s punishing long-term storage fees.
- Hazmat: Products that Amazon refuses to store.
💡 Pro Tip: The “Hybrid” Strategy
Smart sellers create TWO offers on the same ASIN: one FBA (for Prime speed) and one FBM (as a backup for stockouts). This maximizes visibility.
Use Jungle Scout to analyze competitors’ FBA vs FBM strategies.
Doing Wholesale? Use our dedicated Wholesale Profit Calculator.
FAQ
A: With FBA, you send stock to Amazon, and they handle storage, packing, shipping, and customer service. With FBM, you store the goods (in your garage or 3PL) and ship them yourself when an order comes in.
A: Not always. For small items (under 1lb), Amazon FBA fees are often cheaper than what you would pay USPS or UPS. However, for heavy items (>5lbs), FBM is usually significantly cheaper.
A: Generally, no. FBM offers do not show the Prime logo unless you qualify for Seller Fulfilled Prime (SFP), which has extremely strict 1-2 day delivery requirements that are hard for small sellers to meet.
A: FBA almost always has a higher conversion rate because customers trust the Prime badge and fast shipping guarantees. You might make more profit per unit with FBM, but sell fewer units overall.
