LEARN · AMAZON · MODULES
Module 01: How Amazon works in 2026, FBA vs FBM and fees
FBA vs FBM in 2026 comes down to one question per product: who should store, ship and handle returns for it, Amazon or you? FBA (Fulfillment by Amazon) hands those jobs to Amazon for a per-unit fee; FBM (fulfilled by merchant) keeps them with you or your 3PL, along with the delivery metrics.
Around that choice sit the costs every seller pays: a plan fee ($0.99 per item sold or $39.99 a month), a referral fee on each sale set by category, and, with FBA, fulfillment and storage fees that rose in 2026. This module walks through all of it with Amazon's own figures, then shows a side-by-side cost comparison you can copy for your product.
Most new stores take months to find steady sales, and some never do. Inventory, platform fees, freight and ad spend are paid by you.
How does selling on Amazon work?
You list products in Amazon's store as a third-party seller through Seller Central. Shoppers buy them, and Amazon takes its fees before paying you. Selling partners, the independent businesses that sell there, account for "more than 60% of sales in Amazon's store" (About Amazon, 2025 Small Business Empowerment Report). Brands that Amazon invites can also sell wholesale to Amazon through Vendor Central, where Amazon buys the stock and sets the price (Sell on Amazon, Seller Central). This guide covers Seller Central.
Here is what happens to one order, start to finish:
- A shopper finds your offer in search or on a product page and buys it.
- The order is fulfilled: from an Amazon fulfillment center if you use FBA, or by you or your 3PL if you use FBM.
- Amazon deducts the referral fee and, for FBA orders, the fulfillment fee from the sale.
- The balance waits in your account until it becomes available, then is paid to your bank account.
- If the shopper returns the item, Amazon refunds them and the return flows back to you (FBM) or to Amazon's network (FBA).
Every number in that chain is a cost you can price before you buy a unit. That is the habit this guide builds.
Individual vs Professional seller: which plan?
Amazon offers two plans. The Individual plan costs $0.99 per item sold; the Professional plan costs $39.99 a month plus selling fees (Sell on Amazon, Pricing).
| Individual | Professional | |
|---|---|---|
| Plan fee | $0.99 per item sold | $39.99 a month |
| Sponsored Products ads | No | Yes (Amazon Ads, Sponsored Products) |
| New Seller Incentives | No | Yes, for new-to-Amazon sellers (Sell on Amazon, New Seller Incentives) |
| Break-even point | Cheaper below 40 items a month | Cheaper from about 41 items a month ($39.99 divided by $0.99) |
If you plan to advertise, build a brand or claim the new-seller credits, the Professional plan is the only real option, whatever your volume.
What do you pay Amazon per sale?
Three layers: the plan fee above, a referral fee on every sale and, if you use FBA, fulfillment fees.
Referral fee. "For every item sold, you'll pay a percentage of the total price or a minimum amount, whichever is greater" (Sell on Amazon, Pricing). Total price includes any shipping you charge. Examples from Amazon's pricing page today:
| Category | Referral fee | Minimum |
|---|---|---|
| Home and Kitchen | 15% | $0.30 |
| Automotive and Powersports | 12% | $0.30 |
| Computers | 8% | $0.30 |
| Clothing and Accessories | Tiered, 5% to 17% by total price | $0.30 |
| Media (books, DVD, music, software, video) | 15%, plus a $1.80 closing fee per item | None listed |
Check your own category on Amazon's pricing page before you price anything; a wrong category can move your fee by several points.
FBA fees. If Amazon fulfills, you pay a fulfillment fee per unit (by size and weight), monthly storage on the space your stock occupies, an aged inventory charge on units stored more than 181 days, returns processing when the shopper gets free return shipping, removal or disposal fees and an inbound placement fee for standard and large bulky items (Sell on Amazon, Fulfillment by Amazon).
What changed in Amazon's fees in 2026?
Three changes matter for any FBA vs FBM comparison this year:
- Jan 15, 2026:
FBA fees rose by "an average of $0.08 per unit sold" (Amazon, 2026 fee update).
- Apr 17, 2026:
a 3.5% fuel and logistics surcharge applies on top of fulfillment fees (Amazon Seller Forums, fuel and logistics surcharge).
- Oct 15, 2026 to Jan 14, 2027:
holiday peak fulfillment fees average $0.32 per unit over non-peak rates, and the 3.5% surcharge applies on top of them (Amazon Seller Forums, 2026 holiday peak fees).
Two operational changes also landed. Amazon no longer preps or labels units for you in the US, and for inventory shipped on or after Mar 31, 2026 Amazon ended commingling: brand owners with the Brand Representative role can ship products with a manufacturer barcode without Amazon stickers, while resellers must sticker every unit (Amazon Seller Forums, commingling ends). Every dated fee change is in our Amazon FBA fees 2026 guide.
FBA vs FBM in 2026: which fits your product?
Decide per product, not once for the store. These are the questions we ask on every SKU:
| Question | Points to FBA | Points to FBM |
|---|---|---|
| Size and weight | Small, light, standard size | Oversized, heavy, awkward to store |
| Sales speed | Steady and predictable | Slow, seasonal or lumpy |
| Product type | Standard goods | Custom, made to order, fragile, bundles you assemble |
| Your capacity | No warehouse or team | A warehouse, 3PL or team that ships the same day |
| Prime badge | Eligible through FBA (Sell on Amazon, FBA) | Only if you meet Amazon's seller-fulfilled delivery requirements |
| Who owns the delivery metrics | Amazon handles shipping and service | You do: Amazon's guidance is a late shipment rate "ideally under 4%" and cancellations "below 2.5%" (Sell on Amazon, Selling policies) |
Many sellers run both: FBA for fast movers and FBM for oversized or slow items, or FBM as a backup offer when FBA stock runs short.
Worked example: FBA vs FBM cost per unit
Illustrative · sample figures; not Amazon rates and not a forecast. A 1 lb standard-size product sells for $24.99 in Home and Kitchen with free shipping to the shopper.
| Cost per unit | FBA | FBM |
|---|---|---|
| Referral fee (15%) | $3.75 | $3.75 |
| Fulfillment fee (sample $4.50) plus 3.5% surcharge | $4.66 | Not charged |
| FBA storage (sample, steady seller) | $0.08 | Not charged |
| Shipping label (sample) | Not charged | $5.20 |
| Box and packing materials (sample) | Included | $0.40 |
| Pick, pack and labor (sample) | Included | $0.60 |
| Total Amazon and fulfillment cost | $8.49 | $9.95 |
In this example FBA costs $1.46 less per unit and adds the Prime badge. Change one input and the answer can flip. If the same product were 15 lb, or sold three units a month and sat in storage for half a year, FBM could win. If it shipped in October, the peak fee would add about $0.32 plus surcharge to the FBA column. Run your own numbers through Amazon's Revenue Calculator, which compares "FBA and your own fulfillment method" (Sell on Amazon, Pricing), or our fee and margin calculator.
How to compare FBA and FBM for your product, step by step
- 01Measure and weigh the packaged unit.
Use the box it will ship in, not the product alone. Size tier drives the FBA fee.
- 02Find your category's referral fee
on Amazon's pricing page.
- 03Open the Revenue Calculator
and search an existing listing like yours (same size and weight).
- 04Enter your price and your real FBM costs:
label rate from your carrier or 3PL, packaging and labor per order.
- 05Add the 3.5% surcharge
to the FBA fulfillment fee if the calculator has not, and add the peak fee for October to mid-January sales.
- 06Estimate storage time.
If a unit will sit for months, storage and aged inventory charges belong in the FBA column. Module 06 shows how to plan stock so it does not.
- 07Write down the decision and the reason
per SKU, and revisit it at each fee change.
When do you get paid?
Since Mar 12, 2026, funds become available seven days after Amazon confirms delivery, which Amazon calls DD+7. The date and wording come from Amazon's notice as quoted by sellers: Amazon said it would move sellers to "the standard reserve period of seven days after delivery date (DD+7)" (Amazon notice as quoted by sellers). Your bank transfer then adds its own days.
Plan cash around it. A sale on the 1st that delivers on the 4th is not available until about the 11th, and you will pay for the next purchase order long before that money lands.
What does Amazon give new sellers?
New-to-Amazon sellers on the Professional plan can claim a set of New Seller Incentives, each with its own deadline and conditions (Sell on Amazon, New Seller Incentives):
- 10% back on the first $50,000 in branded sales, then 5% on the next $950,000, if you enroll your brand in Brand Registry within six months of your first eligible listing (expires after one year).
- A $400 inbound placement credit, $100 off Amazon Partnered Carrier shipments and a $200 Amazon Global Logistics credit, each for eligible products sent within 90 days of listing.
- Free storage, liquidations and customer returns through FBA New Selection, for eligible new-to-FBA products sent within 90 days of listing.
- Sponsored Products credits of $50, $200 or $1,000 after matching spend, for a campaign created within 90 days of listing.
The clocks start early. If Brand Registry and your first FBA shipment are not ready when your first listing goes live, some of these windows close before you can use them. Module 03 covers the trademark timing.
Common mistakes in the first month
-
Choosing the Individual plan to save $39.99,
then finding you cannot run Sponsored Products or claim the incentives.
-
Comparing FBA and FBM on the fulfillment fee alone,
without storage, the surcharge, peak fees or your own labor.
-
Sending all your stock to FBA at once.
Slow units pay storage every month and become aged inventory.
-
Ignoring DD+7 in the cash plan,
so the next order is short of funds.
-
Listing in the wrong category,
which changes your referral fee and who sees the product.
Key takeaways
- Professional plan if you will advertise, build a brand or claim incentives.
- Referral fees depend on category; check yours on Amazon's pricing page.
- FBA usually wins for small, steady items; FBM can win for heavy or slow ones. Prove it per SKU.
- 2026 added a 3.5% surcharge and a peak fee on top of fulfillment fees.
- Money is available seven days after confirmed delivery.
Do this now
- Find your category's referral fee on sell.amazon.com/pricing.
- Measure and weigh your packaged product.
- Run it through the Revenue Calculator twice: FBA and your own fulfillment.
- Fill the worked example table with your real numbers.
- Write down which plan and which fulfillment method you will use, and why.
Watch and practice
- Short: "FBA or FBM: which should you use?" (32 seconds). Characters are fictional. Voices are AI-generated.
- Short: "What is Amazon's 3.5% fuel surcharge?" (33 seconds, dated). Characters are fictional. Voices are AI-generated.
- Tools: Amazon's Revenue Calculator (Sell on Amazon, Pricing) and our fee and margin calculator. Back to the Amazon guide.
0:32
Read the transcript Captions are on screen Characters are fictional. Voices are AI-generated.
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What is the difference between FBA and FBM?
With FBA, Amazon stores your stock, picks, packs and ships orders and handles customer service and returns, for a fee per unit plus storage (Sell on Amazon, Fulfillment by Amazon). With FBM, you or your 3PL do all of that and you own the delivery metrics, such as late shipment and cancellation rates. Many sellers use both, product by product.
Is FBA worth it in 2026?
For small, steady-selling items it often is, even after the Jan 15 fee increase and the 3.5% surcharge, because it brings the Prime badge and removes shipping work. For heavy, oversized or slow items, storage and fulfillment fees can outweigh that. Compare both methods in the Revenue Calculator for each product before you decide.
What is the referral fee on Amazon?
A percentage of the total price, or a minimum amount, whichever is greater, set by category (Sell on Amazon, Pricing). Home and Kitchen is 15%, Automotive 12% and Computers 8%, most with a $0.30 minimum. Media items also pay a $1.80 closing fee.
Should I choose the Individual or Professional plan?
Individual costs $0.99 per item sold and is cheaper below about 40 sales a month. Professional costs $39.99 a month and is required for Sponsored Products ads and the New Seller Incentives (Sell on Amazon, Pricing; Amazon Ads, Sponsored Products). If you are building a brand, choose Professional from the start.
Can I use FBA and FBM at the same time?
Yes. You choose fulfillment per offer, so you can send fast movers to FBA and ship oversized or slow items yourself. Some sellers also keep an FBM offer ready on FBA products as a backup when stock at Amazon runs low, provided they can meet the delivery metrics.
When does Amazon pay sellers?
Since Mar 12, 2026, funds become available seven days after Amazon confirms delivery (DD+7), per Amazon's notice as quoted by sellers (Amazon notice as quoted by sellers). The bank transfer adds time after that, so plan purchase orders with that delay in mind.
Does FBM still get the Prime badge?
Only if you meet Amazon's requirements for seller-fulfilled Prime delivery, which are strict. Most new sellers who want the badge get it through FBA. If you ship yourself, set handling times you can meet on your busiest day, because late shipments count against your account.
Sources13 sourcesLast checked Oct 20, 2026
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- 07sellingpartners.aboutamazon.comchecked Oct 20, 2026Primary
- 08sellercentral.amazon.comchecked Oct 20, 2026Primary
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- 10sellercentral.amazon.comchecked Oct 20, 2026Primary
- 11sellercentral.amazon.comchecked Oct 20, 2026Primary
- 12advertising.amazon.comchecked Oct 20, 2026Primary
- 13aboutamazon.comchecked Oct 20, 2026Primary
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