Copy and paste into your AI tool
You are a senior ecommerce operations analyst who has helped Amazon
sellers build fulfillment models at every scale. You know that the
FBA vs. FBM decision looks obvious on the surface but gets complicated
fast once you factor in labor, packaging, storage, and the Buy Box
implications. Your job here is to run the numbers honestly — no
rounding in favor of the seller's preferred answer.

I'm going to provide you with SKU-level data. For each SKU, calculate
the true per-unit fulfillment cost under both FBA and FBM, then
produce a recommendation.

FBA COST MODEL — calculate for each SKU:
1. FBA fulfillment fee (as provided)
2. Monthly storage fee (monthly rate × estimated months of supply)
3. Inbound shipping per unit (as provided)
4. Return processing fee × estimated return rate (as provided)
5. Long-term storage risk flag: if days of supply > 270, flag for
   potential LTS fee exposure
6. Total FBA cost per unit = sum of 1-4

FBM COST MODEL — calculate for each SKU:
1. Outbound shipping cost per unit (as provided)
2. Packaging materials per unit (box, void fill, tape — as provided
   or ask)
3. Labor cost per unit (pick, pack, ship time in minutes × hourly
   labor rate ÷ 60)
4. Returns handling cost per unit (return rate × average FBM return
   processing cost)
5. Warehouse/storage cost per unit: (monthly storage cost per cubic
   foot × SKU cubic footage × months of supply)
6. Total FBM cost per unit = sum of 1-5

COMPARISON ANALYSIS:
- Cost delta per unit (FBA − FBM): positive = FBA is more expensive
- At current monthly sales volume, annual cost delta = delta per unit
  × monthly units × 12
- Recommendation: FBA, FBM, or HYBRID (FBM for slow season,
  FBA for peak Q4)

HYBRID FLAG: Recommend Hybrid if:
- FBM is cheaper per unit but the SKU does significant Q4 volume
  (>50% of annual volume in Q4), AND
- FBA cost advantage in Q4 is material (Buy Box impact, Prime badge)

Output format:

FBA vs. FBM COST ANALYSIS

| SKU | FBA Total/Unit | FBM Total/Unit | Delta/Unit | Annual Delta |
LTS Risk | Recommendation |

After the table:

TOP 3 INSIGHTS
Numbered, ranked by annual cost impact. Each insight is 2 sentences:
what the data shows and what to do about it.

BEFORE YOU EXECUTE:

1. If any required input is missing, unclear, or looks malformed,
   stop and ask me a specific clarifying question before proceeding.
   Do not guess or fill in plausible values.

2. If I haven't provided labor rate or labor time per unit, ask before
   attempting the FBM calculation. These are the most commonly missed
   inputs and the most distorting if omitted.

3. Do not ignore storage costs for FBM. Many sellers forget they're
   paying for warehouse space even when self-fulfilling.

4. If you are less than 95% confident you understand what I'm asking
   for, ask me to clarify before executing the task.

5. Verify every arithmetic calculation by working it twice. Do not
   round intermediate calculations; round final figures to two decimal
   places.

6. After completing the task, flag any SKU where you had to make an
   assumption under a "Caveats" section.

=====

PASTE YOUR SKU DATA BELOW.

FBA inputs needed per SKU: SKU, FBA fulfillment fee, monthly FBA
storage fee per unit, inbound shipping per unit, return rate %,
return processing fee, units on hand, monthly sales volume.

FBM inputs needed per SKU: outbound shipping cost per unit,
packaging materials per unit, pick/pack labor time in minutes,
hourly labor rate, FBM return processing cost, monthly warehouse
storage cost per cubic foot, SKU dimensions (L × W × H inches).

[YOUR SKU DATA HERE]
What you'd paste after the divider
Hourly labor rate: $18/hour
Monthly warehouse storage: $1.20 per cubic foot

SKU: WIDGET-001 (Silicone Spatula Set)
Dimensions: 12 × 6 × 3 inches
Units on hand: 240
Monthly sales: 85 units
Return rate: 6%

FBA inputs:
FBA fulfillment fee: $4.75
Monthly FBA storage fee per unit: $0.14
Inbound shipping per unit: $0.80
Return processing fee: $3.50

FBM inputs:
Outbound shipping: $5.20 (USPS Priority average)
Packaging materials: $0.65
Pick/pack labor: 4 minutes per unit
FBM return processing cost: $2.00
01

Pull your FBA fee data from the Amazon Revenue Calculator or from Seller Central: Reports > Fulfillment > Fee Preview. Use the actual fee, not your estimate of the fee.

02

Labor is the most frequently underestimated FBM cost. Time yourself or your team doing a real pick-pack-ship cycle and use that number — don't guess.

03

The Buy Box is harder to win as FBM, especially for competitive categories. If your category is price-sensitive and BSR-dependent, factor in potential lost sales volume, not just per-unit cost.

What does the FBA vs. FBM Cost Comparison prompt do?
Calculate the true landed fulfillment cost per unit for FBA versus self-fulfillment (FBM) for each SKU — including costs most sellers forget. Tells you which fulfillment method is actually cheaper and which SKUs are being subsidized by the rest of your catalog.
What data do I need to use this prompt?
An example of the exact input format is provided on this page under "Example Input." Generally you'll prepare your data in the structure shown, paste it after the prompt body, and the AI will return the analysis described above. If you're missing any inputs, the prompt will ask you what it needs.
How long does this take to set up?
Setup time for this prompt is 30-60 mins. That includes pulling your data, formatting it to match the example, and running the prompt. Once your data pipeline is set up the first time, subsequent runs take only a few minutes.
Which AI tool should I use this with?
This prompt is designed to work with any major large language model — ChatGPT (GPT-4 or newer), Claude (Sonnet 4 or newer), or Gemini. For structured analysis, math, and tabular outputs, Claude and GPT-4 class models produce the most reliable results.
Does this prompt work for Shopify or other platforms?
This prompt is built for Amazon sellers and references Amazon-specific data points such as referral fees, FBA fulfillment fees, and ASIN-level metrics. The underlying methodology can be adapted to other platforms by substituting equivalent inputs, but the prompt as written is Amazon-first.
What skill level is required to use this prompt?
This prompt is rated intermediate. Some familiarity with your platform's data exports and basic AI prompting is helpful for getting the most out of it. Most ecommerce operators can use it productively within a single session.
Is this prompt free to use?
Yes. Every prompt in the SMB Advantage Prompt Library is free for any small business operator to use. The only cost is whatever you pay for your AI tool subscription (ChatGPT Plus, Claude Pro, etc.).
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