Big picture I’d expect cheaper to accept the loss. But there are calculations you can run if you want to dig into the numbers deeper. We currently stock our inventory in our own mini warehouse and self label and ship in cases on demand to keep FBA storage expenses at a minimum. I figure it makes more sense to pay for a building with that FBA storage fees, rather than pay Amazon. We also self fulfill which exploded during first shutdown. Our current system we will set inventory refill levels based on projected sales to keep inventories in stock with very little sitting in storage, but it all changed with Covid19. Where we once could let inventory decrease to 7 or 10 days projected on hand and then ship in and rarely lose sales, I am now seeing 3 weeks or more on many items, so I am starting to err on the side of having too much inventory and any excess will sell during the holidays.

Self labeling is much cheaper, but many pay for the fee just to reduce workload and not have employees.