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It depends on whether the sales and operational savings Amazon brings outweigh its fees and other costs. Selling through Amazon is not automatically more profitable than running your own store, and an own-site store is not fee-free. Compare the same product, price, order volume, fulfillment method, and marketing assumptions in both channels to see which leaves more contribution per order.
What does it cost to sell on Amazon?
For the US marketplace, Amazon lists two selling plans: Individual at $0.99 per item sold and Professional at $39.99 per month. These plan charges are separate from referral fees and any fulfillment, storage, advertising, or other service costs. Check Amazon’s current selling-plan and fee schedule before modeling a product, because prices and fee schedules can change.
Amazon’s referral fee varies by product category. It is calculated as a percentage of the total price or a minimum amount, whichever is greater. Amazon’s US examples include 15% for Home and Kitchen and 8% for Computers; those examples are not a universal rate. Confirm the product’s fee category and applicable schedule rather than applying one assumed percentage to every sale.
Fulfillment adds a second set of trade-offs
With Fulfillment by Amazon (FBA), Amazon can store inventory, pick and pack orders, ship them, and handle customer service and returns. FBA charges depend on factors including item size and weight; storage charges depend on inventory volume and can vary by season. See Amazon’s FBA overview and fee guide for the cost categories.
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FBA is optional. If you fulfill orders yourself, include postage, packaging, labor, customer service, and returns in the comparison. Amazon’s Revenue Calculator can estimate FBA versus seller-fulfilled costs for a particular product, but Amazon says the results are estimates and actual costs may vary. Use your actual dimensions, weight, product category, and operating costs where possible.
How does Amazon compare with an own-site store?
An own-site store avoids Amazon’s marketplace referral fee, but it brings platform, payment-processing, fulfillment, and customer-acquisition costs of its own. Shopify is one US hosted-store example, not a proxy for every website setup: its pricing page lists Basic at $29 per month with annual billing or $39 per month with monthly billing, and online card rates from 2.9% plus $0.30. Third-party transaction fees may apply depending on the plan and payment setup. Rates and payment availability vary by region; check Shopify’s pricing page and its fees and costs guidance for current terms.
Rank #2
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These figures are not a direct comparison of total cost: Amazon’s plan charges, category fees, and optional fulfillment costs differ in structure from an own-site subscription and payment processing. Add costs using the same assumptions on both sides.
| Cost or operational factor | Amazon marketplace | Own-site store | What to include in your comparison |
|---|---|---|---|
| Fixed channel cost | Individual or Professional selling-plan charge | Store subscription; Shopify is one example | Allocate monthly fixed costs across expected orders. |
| Per-order channel or payment charges | Category-specific referral fee, plus any relevant service charges | Payment processing and possibly third-party transaction fees | Calculate the charge for the expected order value and payment method. |
| Fulfillment | FBA or seller-fulfilled shipping | Your own fulfillment or a third-party arrangement | Count pick and pack, shipping, packaging, storage, returns, and labor. |
| Demand and acquisition | Marketplace listing and optional advertising | Your store’s traffic and marketing plan | Estimate acquisition cost, conversion, and incremental sales; do not assume either channel supplies free demand. |
| Workload and service | FBA can shift some logistics and customer-service work to Amazon | Account for platform, checkout, fulfillment, and service operations | Include the value of your time and any service obligations. |
How to calculate which channel is more profitable
Compare contribution per order—the money left after the costs tied to generating and serving that order—then account for monthly fixed costs and expected volume. Use identical product, price, discount, and volume assumptions for both channels. A simple worksheet should include:
Rank #3
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- Selling price, discounts, and product cost.
- Per-order share of the selling-plan or store subscription charge.
- Amazon referral fee, or own-site payment-processing and any applicable transaction fees.
- Fulfillment, packaging, shipping, storage, and returns.
- Advertising and other customer-acquisition costs.
- Expected order volume, inventory holding time, and owner labor.
For an Amazon estimate, enter product details in the Revenue Calculator and compare FBA with seller fulfillment. For the own-site scenario, add the platform and payment costs that apply to your region and setup, along with your fulfillment and marketing assumptions. Treat the result as a model, not a guaranteed outcome; update it with actual invoices, advertising costs, order volume, and returns as they accumulate.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.When might each channel make sense?
Amazon may fit when incremental sales justify its charges
The relevant question is whether access to Amazon customers and any value from its fulfillment services produce enough additional contribution to cover the plan, referral fee, fulfillment and storage, advertising, and other costs. Do not treat marketplace presence as proof of free or guaranteed demand.
Rank #4
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An own site may fit when its full operating costs work for your business
A direct store avoids Amazon referral fees, but its subscription, payment processing, fulfillment, service, and demand-generation costs still need to fit the product’s margins. The answer depends on your product, audience, geography, volume, and how you acquire customers—not simply on the absence of a marketplace fee.
You can use both channels
Amazon says FBA inventory can also fulfill orders placed through your own website or another channel using Multi-Channel Fulfillment. This can be operationally convenient, but compare its rates with other fulfillment options before assuming it is the lowest-cost arrangement. See Amazon’s optional selling-service costs and online selling overview.
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What seller-sales statistics can—and cannot—tell you
Amazon’s FAQ reports that independent sellers in Amazon’s US store had more than $375,000 in average annual sales in 2025. This is an Amazon-published sales figure, not profit, an estimate of what a particular seller is likely to earn, or a comparison with own-site sellers. It cannot establish which channel will be more profitable for your business. See Amazon’s seller FAQ.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
