Selling on Amazon can be a great way to reach millions of customers worldwide. If you choose Fulfillment by Merchant (FBM), you handle the storage, packing, and shipping of your products yourself. While FBM gives you control, it also comes with extra costs you need to understand to run a profitable business.
In this article, we break down all Amazon FBM fees, show you how to calculate Amazon FBM shipping rates, and compare FBM to FBA. We’ll also explain what is the other fee for FBM and give tips to manage your expenses efficiently.
Table of Contents
Part 1: Amazon FBM Fee Breakdown
When selling through FBM, Amazon charges different types of fees. Understanding these fees is important so you can accurately calculate your profit margins.
Selling Plan Fees
Amazon offers two selling plans:
- Individual Plan: Costs $0.99 per item sold. This plan is suitable if you sell fewer than 40 items per month.
- Professional Plan: Costs $39.99 per month, ideal for higher-volume sellers.
These fees are fixed, but they are only part of your total FBM costs. Knowing what is the other fee for FBM can help you plan better.
Referral Fees
Amazon charges a referral fee on every sale. The rate depends on the product category and usually ranges from 8% to 20% of the total sales price. For example, electronics typically have a lower Amazon referral fee, while clothing and jewelry may have higher fees. It’s important to include this in your cost calculations to understand your net profit.
Shipping Costs
As an FBM seller, you pay for shipping. This cost varies based on package size, weight, and destination. You can control shipping by offering standard or expedited options, but you should always know your Amazon FBM shipping rates to avoid losses.
Many new sellers ask, “Amazon FBM who pays for shipping?” The answer is simple: the seller covers shipping unless you pass it to the customer.
Packaging and Handling
Shipping costs are not the only expense. Packaging materials, boxes, labels, and labor add to your total cost. Calculating Amazon FBM fees should always include packaging and handling, especially for fragile or bulky items.
Customer Service and Returns
Unlike FBA, FBM sellers manage customer service and returns. Handling inquiries, processing refunds, and repackaging returned items can take time and money. This is another area where knowing what is the other fee for FBM helps in budgeting properly.
Part 2: Estimating FBM Shipping Costs
Properly estimating shipping costs is key to maintaining healthy profits.
Utilizing Amazon's Shipping Settings
Amazon Seller Central offers Amazon FBM shipping settings to define shipping rates and regions. You can set your own rates based on weight or price and choose delivery times. Configuring these settings helps avoid undercharging and ensures customers see accurate shipping fees.
Third-Party Shipping Calculators
For accurate cost estimates, use the Amazon FBM shipping calculator. This tool helps you calculate shipping fees based on package weight, dimensions, and carrier rates in real time. Using the calculator ensures you know your actual shipping costs before listing products.
Calculating Profit Margins
To determine profits, include all costs: selling plan fees, Amazon referral fee, packaging, shipping, and customer service. Using Amazon FBM shipping rates and the calculator together makes it easier to calculate margins and set competitive prices.
Part 3: FBM vs. FBA: Cost Comparison
Understanding the difference between FBM and FBA helps you choose the best method for your business.
Fulfillment Costs
With FBM, you handle fulfillment yourself. This can reduce costs if you have an efficient system, but it also increases your workload. FBA charges fulfillment fees but manages packing, shipping, and customer service. Comparing Amazon FBM vs FBA helps sellers decide which method fits their resources.
Storage Fees
FBM sellers avoid Amazon’s storage fees since they store inventory themselves. In contrast, FBA sellers pay monthly storage fees. Calculating Amazon FBM fees versus FBA fees can show you whether self-fulfillment or outsourced fulfillment is more cost-effective.
Customer Trust and Prime Eligibility
FBA automatically makes your products Prime-eligible, which can boost sales. With FBM, you must manage shipping speed and reliability yourself. Customers may check Amazon FBM shipping settings before buying to ensure they get timely delivery. Maintaining trust is crucial if you want repeat buyers.
Bonus Tip – Enhance Your Product Listings with PixPretty AI Photo Editor
High-quality product images are essential for boosting sales and managing Amazon FBM fees. PixPretty AI Photo Editor helps FBM sellers create professional, eye-catching images that stand out, improve click-through rates, and build buyer confidence.
Features like batch editing, background removal, and AI enhancements save time and keep all listings consistent. Optimized visuals can increase product visibility, conversions, and help sellers stay competitive while controlling costs.
Key Features of PixPretty AI Photo Editor:
- Automatic background removal for clean, focused images.
- Advanced color correction to make products more appealing.
- Easy cropping and resizing to meet Amazon image standards.
- Batch editing to enhance multiple listings quickly.
- AI-powered enhancements for sharper, professional visuals.
FAQ: Common Questions About Amazon FBM Fees
Q1: Who pays for shipping in FBM?
As an FBM seller, you cover shipping costs. Customers may pay for shipping only if you set it up in your Amazon FBM shipping settings.
Q2: Can I use Amazon's tools to estimate shipping fees?
Yes. The Amazon FBM shipping calculator and shipping settings in Seller Central help estimate costs and avoid unexpected expenses.
Q3: How do FBM fees compare to FBA fees?
FBM fees can be lower if you handle fulfillment efficiently. However, FBA provides convenience and Prime eligibility. Comparing Amazon FBM vs FBA is essential to choose the best approach.
Conclusion
Success in Amazon FBM requires careful cost management, including selling fees, referral fees, shipping, and customer service. Tools like the Amazon FBM shipping calculator and settings help plan fulfillment efficiently.
Enhancing listings with PixPretty AI Photo Editor attracts more buyers, increases conversions, and boosts overall sales, ensuring your FBM business stays profitable and competitive.