Amazon FBA vs FBM Calc
Compare net profits between Amazon FBA and FBM fulfillment. Estimate referral fees, pick and pack fees, and shipping costs to find your most profitable strategy.
Amazon FBA vs FBM Profitability
Compare fulfillment strategies and protect your product margins from hidden fees.
Include manufacturing + initial shipping
FBA Specific Fees
FBM / Merchant Costs
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FBM earns you $0.00 more per unit.
Amazon Referral Fee: We assume a standard 15% referral fee across most categories. High-price electronics or jewelry may vary.
Break-Even Logic: This tool calculates gross profit. It does not account for PPC ad spend, which typically consumes 15-30% of revenue.
FBA vs FBM: Which Fulfillment Method is Best in 2024?
For Amazon sellers, choosing between FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant) is one of the most critical financial decisions. FBA offers the Prime badge and increased search visibility, but at a higher cost. FBM gives you control over shipping and packaging, which can save large margins on specific products. This Amazon Profit Calculator helps you find the "break-even" point for each.
Understanding Amazon Selling Fees
Regardless of which method you choose, Amazon takes a cut. Understanding these fees is the difference between a profitable brand and one that loses money on every sale.
- Referral Fees (15%): Think of this as the "rent" for selling on Amazon's platform. Most categories are 15%, though some vary from 8% to 45%.
- Fulfillment Fees (FBA Only): A flat fee per unit based on weight and dimensions. This covers the labor of picking, packing, and shipping your product.
- Storage Fees: Monthly costs for keeping your inventory in Amazon warehouses. These spike during the Q4 holiday season.
The 'Small and Light' Advantage
Amazon offers discounted FBA fees for items priced under $10. If your product is lightweight and low-cost, FBA is almost always more profitable than shipping it yourself via FBM.
3 Signs You Should Switch to FBM
- Oversized Items: If your product is large/heavy (furniture, heavy gym equipment), Amazon's "Oversize" FBA fees will often be 2-3x higher than a private carrier like UPS or FedEx.
- Strict Quality Control: If your product requires custom packaging or sensitive handling that Amazon’s warehouse staff might overlook, FBM ensures your brand experience stays high.
- Slow Turn-Over: High FBA storage fees can bankrupt you if your inventory sits for 6+ months. If you have a low-velocity product, keeping it in your own garage or warehouse (FBM) is safer.
The tools and calculators provided on The Simple Toolbox are intended for educational and informational purposes only. They do not constitute financial, legal, tax, or professional advice. While we strive to keep calculations accurate, numbers are based on user inputs and standard assumptions that may not apply to your specific situation. Always consult with a certified professional (such as a CPA, financial advisor, or attorney) before making significant financial or business decisions.
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