Amazon FBA vs FBM UK
Compare Amazon FBA-style and FBM-style UK economics using the same product inputs and referral-fee scenario.
Worked example winnerAmazon FBA
The referral-fee model is similar here, so the real decision sits in fulfilment cost, delivery promise, operational capacity and conversion impact.
Example scenario£39.99 sale / £12.50 product cost
Shipping cost £5.20 and ad spend £3.50 are included in both rows.
ChannelScenarioFeesProfitMargin
Amazon FBAEverything Else referral fee; fulfilment entered as shipping cost£6.00£12.7932.0%
Amazon FBMEverything Else referral fee; seller fulfils order£6.00£12.7932.0%
Best Fit
- FBA: sellers who value Prime-style fulfilment, operational simplicity and faster delivery expectations.
- FBM: sellers who can fulfil accurately, control postage costs and test demand before sending stock into fulfilment.
Watch Outs
- FBA fulfilment, storage and return costs are not universal and should be entered conservatively.
- FBM is not free; postage, packaging, labour and customer service still belong in the margin model.
Use the calculators
Run your own product numbers next.
FAQs
Is Amazon FBA more profitable than FBM?
Not automatically. FBA can improve convenience and conversion, but the fulfilment cost must be low enough for the margin to survive.
Why are the referral fees similar in this comparison?
Both examples use the current Amazon UK Everything Else referral-fee scenario. Fulfilment costs are entered separately by the seller.