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FBA vs. FBM: when does each make sense?

Who stores and ships your products has a direct impact on your costs, your cash flow and the customer experience. There is no single right answer between FBA and FBM, and you can use both side by side, product by product.

Last reviewed: October 8, 2026

Definitions

FBA (Fulfillment by Amazon)FBM (Fulfilled by Merchant)
Where is the inventory?In Amazon's fulfillment centersIn your own warehouse or with a logistics provider you contract
Packing and shippingAmazonYou
Customer service and returnsAmazon (you are charged a fee for some returns)You; return requests must be answered within 24 hours
Prime badgeMay be eligibleOnly through Seller Fulfilled Prime
Main costsFulfillment, storage and inventory-related feesYour own shipping, warehousing and staff costs

FBA fee types

Amazon updates the amounts every year, so we do not list them here. For current rates, see Amazon's fee pages and its Revenue Calculator.

  • Fulfillment fee: charged per unit, based on the product's price, weight and dimensions.
  • Monthly storage fee: based on the space your inventory occupies. Rates may be higher in the last quarter of the year.
  • Aged inventory surcharge: for inventory stored longer than 181 days in the US or 241 days in the UK.
  • Low-inventory-level fee (US, since 2024): charged if you consistently hold too little inventory relative to your sales.
  • Inbound placement fee (US, since 2024): based on which fulfillment centers your inventory is sent to and how many locations it is split across.
  • Returns processing fees, plus removal and disposal fees.

What changed in 2025–2026?

  • US: from January 15, 2026, FBA fees rose by a small average amount per unit, and no new FBA fee types were introduced. There was no increase in 2025.
  • UK and Europe: Amazon cut parcel fulfillment fees in December 2025 and referral fees in some categories in January 2026. In April 2026, it added a 1.5% fuel and logistics surcharge to FBA fulfillment fees.

FBA: pros and cons

  • Pro: eligibility for fast Prime delivery, customer service and returns handled by Amazon, and the ability to sell without running a warehouse in the US or the UK.
  • Con: both overstocking (storage and aged inventory fees) and understocking (the low-inventory fee) cost money, so demand forecasting and inventory planning become critical.
  • Con: failing to follow packaging, prep and labeling rules can lead to extra costs and shipment problems.

FBM: pros and cons

  • Pro: control over inventory, delivery times and shipping rates, with no FBA storage fees. You can use discounted carrier rates through Amazon's shipping label service.
  • Con: you must confirm shipments within the stated time frame, provide tracking numbers and respond promptly to customer messages and return requests.
  • Shipping directly from Türkiye can hurt competitiveness because of delivery times, customs and return logistics. That is why FBM is usually run through a logistics provider in the US or the UK.

Seller Fulfilled Prime

Seller Fulfilled Prime lets you display the Prime badge on products you ship yourself. It requires a Professional account and a default shipping address in the US, and Amazon tracks your performance weekly both during and after the trial period. In practice, it is not a fit for shipping directly from Türkiye, but it is worth considering if you work with a warehouse or logistics provider in the US.

Impact on the Buy Box

According to Amazon's 2026 guidance, the Featured Offer (Buy Box) is chosen based on factors including the total price with shipping, fast and reliable delivery, the ordering experience and inventory availability. Amazon says that shipping orders yourself can be just as effective as using FBA. In other words, FBA on its own is neither a requirement for nor a guarantee of the Buy Box, and Amazon does not disclose how the factors are weighted.

When might each option make sense?

  • FBA: standard-size products that sell steadily, categories where Prime visibility matters and sellers without a warehouse in the US or the UK.
  • FBM: slow-moving, oversized, heavy or personalized products; sellers who want to keep inventory risk low; and sellers with a logistics partner in the target market.
  • Hybrid: the same seller can use FBA for some products and FBM for others.

Frequently asked questions

If I use FBA, will I win the Buy Box?

There is no guarantee. Amazon looks at many factors, including price, delivery speed, the ordering experience and inventory, and says FBM can be just as effective.

How do I calculate my FBA costs?

Amazon's official Revenue Calculator lets you compare FBA and FBM costs product by product.

Sources

This article is for general information only and is not legal, tax or financial advice. Rules and fees change; confirm with official sources and a qualified professional before you act.

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