Amazon FBM Fees & Costs [2025 Update]

What is Amazon FBM?

Amazon FBM is also known as Amazon Merchant Fulfilled Network (MFN). In this fulfillment method, Amazon sellers are responsible for fulfilling the purchased products on Amazon. Sellers can manage FBM directly or become a partner with a third-party logistics service provider. Indeed, the merchant should fulfill the whole process from inventory storage, picking, packing, shipping, return, and customer service.

Newbies can only use this method to start their business on Amazon because setting up FBA takes time, and sellers need a few approvals for their Amazon FBA Business. Besides, they require to demonstrate inventory turnover. However, small businesses fulfill orders by the FBM method because the Amazon FBM costs are more reasonable for their business.

What is the Difference Between Amazon FBA & FBM?

Fulfillment by Amazon (FBA) is a fulfillment method in which Amazon has the whole responsibility for fulfilling products. A seller or a seller’s supplier sends the items directly to Amazon’s warehouse, and Amazon stores this inventory, picks, packs, and ships the sold product directly to the customer.

If customers subscribe to the Amazon Prime service, the shipping time would be only two days. Return and customer support are the other services that Amazon provides.

On the other hand, is Amazon FBM. Here, sellers use the Amazon platform to list their products on Amazon. But the merchant has to manage the rest, from storage, pick&pack, and shipment. Even return, and customer service is their responsibilities.

This table provides a detailed FBM vs FBA comparison for 2025 that is useful for every seller:

Amazon FBA VS. FBM ; Which One is Better for You?

What Are Amazon FBM Fees?

When sellers decide to ship the products by themselves, they will incur some costs. These FBM charges depend on shipping and delivery options and vary from seller to seller.

Amazon FBM Shipping Fees

Your Fulfillment by Merchant costs in 2025 vary depending on the type of product you purchase. Every single item has a specific shipping fee, so you may charge more if buying multiple products from a seller. American customers have to pay according to the shipping rate listed below tables for domestic and international shipments:

* Includes APO, FPO, and U.S. Protectorate addresses.

** Some sellers offer reduced transit times when shipping orders. Please see the seller’s policies for more information.

Note: The seller themselves set the shipping charges for non-media products delivered outside the Continental United States. Please see the rates posted in the seller’s shipping policies.

To Know All the Details About Amazon FBA Fees & Costs, Click Here!

Who pays for shipping Amazon FBM?

In the FBM method, the customer/seller must also pay the shipping fees.

Amazon FBM Selling Fees

• Refund Administration Fee:

When a customer returns a product and asks for a refund, Amazon gives Amazon keeps a portion of the referral fee you originally paid, but it keeps a small part of it. This is called the refund administration fee, and it’s about 20% of the referral fee, with a maximum of $5. For example, if your referral fee was $10 , Amazon will keep $2 and return the remaining $8 to you.

• High-Volume Listing Fee:

Most sellers don’t need to pay to list products on Amazon. But if a seller has a huge number of listings, for example, over 100,000 active SKUs, Amazon charges a small fee. This fee is about $0.001 per SKU per month beyond that limit.
Be aware that in 2025, this threshold has been increased in some markets. For example, up to 2 million listings may now be allowed before the fee applies.

• Closing Fee for Media Products:

If you sell media products such as DVDs, books, music, or video games, Amazon charges an additional $1.80 per sale. This fee is on top of the usual referral fee. So if you sell a book, you’ll need to pay both the referral fee and this fixed closing fee.

• Rental Book Service Fee:

If you rent books to students through Amazon’s rental program, you’ll need to pay around $5 per rental. This fee is for using Amazon’s rental service, and it only applies if you participate in the textbook rental program.

Other Fees

• Closing Fees: $1.80 per sale (Books, DVDs, Music, Software, Video Games & Accessories).
• High Volume Listing Fee : $0.001/SKU/month (for large catalogs).
• Rental Book Service Fees
• Refund Administration Fees

Amazon’s 2025 Strategy Shift

 It is important for all sellers to stay informed about the Amazon seller fees UK 2025 updates. For that reason, we have prepared a table to showcase the trends and shifts in fees and policies in Amazon’s strategy from 2024 to 2025.For instance, you can see the FBM vs. FBA comparison for 2025 in the table, and you might consider adjusting some of your approaches based on these or other changes.

Amazon’s 2025 Refund Policy Changes

Some professional sources, including GetIDA, Incrementum Digital and Amazon forums, say that starting in March 2025, Amazon will change its refund policy for lost or damaged FBA inventory. Instead of refunding based on the item’s sale price, Amazon will only reimburse sellers based on the manufacturing cost. For example, if your product sells for $40 but only costs $6 to make, you’ll only get around $6 back, not $40.

• Why is this important? 

If you haven’t submitted the real manufacturing cost to Amazon, they’ll estimate it themselves and it might be much lower than the actual amount.

To help fix this, Amazon has introduced a new tool in Seller Central called “Manage Your Manufacturing Costs.” You can use this tool to upload your true cost per product, including shipping, packaging, and any other expenses. If you skip this step, you may receive far less than you should when products are lost or damaged.

• What should sellers do?

Sellers in 2025 must track their product costs carefully, submit accurate cost data to Amazon, and keep all receipts or invoices. It’s also important to reduce warehouse errors by using good packaging and lowering return rates.

Seller Survival Guide: Get Ready for Amazon’s 2025 FBA Refund Policy Changes

One important thing sellers should know is that big changes are coming to Amazon’s FBA refund policy in 2025. You need to take action to protect your profits. In this guide, we outline a few key steps to help you stay prepared for the new policy.

1. Use Tools to Audit and Recover Past Fee

Check your Amazon account for missed refunds or fee errors from the last 18 months. You can use tools like GetIDA or Refund Genie to automatically find and fix those issues.

• Submit Refund Claims Before March 2025

If Amazon lost or damaged your FBA inventory in 2024 or early 2025, the best time to submit your refund claims is before March 10. After that date, Amazon will only pay based on your product’s cost, so this is your last chance to get full refunds under the old policy.

1. Update Product Costs in Seller Central

Go to Amazon’s new Manage Your Manufacturing Costs section and enter your actual product costs, including shipping, packaging, and materials. This will ensure you get accurate refunds if your inventory is lost or damaged after the 2025 policy changes.

1. Review Your FBA vs. FBM Strategy

Take a closer look at your product line and decide whether FBA is still the best option. For expensive or low-margin items, switching to FBM might be a smarter move. A hybrid strategy could also work well.

1. Stay Updated on Amazon Policy Changes

Amazon changes its policies often. Follow the latest updates in Seller News and check your email regularly so you’re always one step ahead.

Which Fulfillment Method Is Right for You in 2025?

Before pick one method, it is important to have complete information about FBM and FBA and their differences. The first main difference is control. If you choose FBM, you’ll have full control over packaging, storage, and shipping. This lets you manage your own branding and logistics, but this control comes with more responsibility. On the other hand, if you choose FBA, Amazon takes care of everything, including packing, shipping, returns, and customer support. 

Another big difference is Prime visibility and Buy Box. FBA products are automatically eligible for Amazon Prime and get faster shipping. They also have a higher chance of winning the Buy Box, which is key to boosting your sales and product ranking. FBM sellers don’t get the Prime badge unless they qualify for the strict Seller-Fulfilled Prime program.

So, which one is better for you? The answer depends on your goals, budget, and product type. If you sell small, fast-moving items, like phone accessories or cosmetics, FBA can be a great choice. Yes, it has higher fees, but fast shipping and Prime access can increase your sales.

 In contrast, if you sell heavy or slow-moving products like furniture or gym equipment, FBM might be better. It gives you more control and can save money on storage and shipping.

FAQ

Are Amazon FBM fees different for media vs. non-media products?
Yes, FBM fees for media items (like books, DVDs) include a fixed closing fee in addition to referral fees, while non-media items don’t have that extra charge.

Can I use third-party shipping tools to lower my FBM costs?
Yes, tools like ShipStation or Pirate Ship can often provide discounted USPS or UPS rates, reducing your FBM shipping expenses significantly.

Do FBM sellers have to charge sales tax on shipping fees?
Depending on the state, you may be required to collect sales tax on shipping charges; using Amazon’s Marketplace Tax Collection (MTC) can simplify this.

How do I calculate profit margins after FBM shipping and handling?
Subtract Amazon referral fees, your shipping cost, packaging cost, and any software/tool fees from your sale price to find true profit margin.

Are FBM returns more expensive than FBA returns?
Yes, FBM sellers must handle and pay for their own return shipping, which can result in higher costs and more manual work than FBA.

Can I offer free shipping with FBM and still be profitable?
Yes, but you must build the shipping cost into your product price strategically, especially for low-weight or high-margin items.

Do FBM shipping delays affect my Amazon account health?
Yes, late shipments and missed tracking updates can negatively impact your Seller Performance metrics and eligibility for Buy Box rotation.

Are FBM sellers charged for canceled orders?
No, if the order is canceled before shipment, Amazon does not charge any referral or seller fees to FBM sellers.

Can I charge a handling fee on top of shipping with FBM?
You cannot add a visible “handling fee,” but you can build handling costs into your listed shipping rates or item price.

How can I automate label printing and shipping as an FBM seller?
You can integrate Amazon Seller Central with tools like ShipStation or BuyShipping to auto-generate shipping labels and reduce manual work.