Amazon FBM vs. FBA in 2025

Fulfillment by Amazon vs Fulfillment by Merchant: Which is Cheaper?

The basic cost of selling on Amazon in 2025 is the same for FBA and FBM orders. Where the two models differ is on the cost of shipping, handling, and warehousing. For the sake of simplicity, we’ll exclude other costs like advertisingAdvertising is a means of communication … More, branding, or redesigning for FBA.

FBM Cost Breakdown

For FBM orders, these are mostly in-house costs. Frugal sellers can absorb or minimize them. They can negotiate shipping costs with couriers, save on warehousing with 3PL, and economize on labor, materials, and other expenses to keep handling and packaging costs down. 

Also, FBM sellers usually have more leeway when it comes to accepting customer returns and charging restocking fees. But now that Amazon has announced on the app that it offers free international returns, this raises the bar for FBA sellers as well.