Here we are – continuing inexhaustible and enduring issue of Amazon fees and selling costs. It’s time to discuss FBA fees and other costs.
Click here to read the first part of our piece as we’ve discussed:
– How much does it cost to sell on Amazon with individual and professional selling plans
– Amazon product categories
– All fees and commissions for every Amazon product category
But this is far from the limit for Amazon!
Today our team has prepared an important piece on sales fees for FBA program, as well other costs you may face as a seller.
FBA fees
The shipping costs for your orders depend on whether you fulfill your own orders yourself or use Fulfillment by Amazon (FBA) program.
FBA fulfillment fees
‘Fee per unit includes picking and packing your orders, shipping and handling, customer service, and product returns. Fees are based on the weights and dimensions of your product,’ Amazon noted.
Amazon FBA commission chart – not including apparel
Amazon FBA commission chart – apparel
FBA storage fees
Inventory storage is billed monthly based on the average daily volume of space your inventory occupies in Amazon FBA centers. Volume measurement is based on unit size – packed and ready to ship.
Amazon may check the weight and dimensions of an item using representative samples. Amazon’s item weight and size information will be used to calculate commissions if there is a difference between Amazon’s data and the seller’s.
Amazon may change its weight and size information from time to time. Charges based on weight and dimensions are calculated using Amazon’s information on weight and dimensions for that item at the time the commission was calculated.
Amazon FBA storage fee chart
Storage fees for dangerous goods
Additional inventory storage fees apply to items classified as hazardous and to items that have been stored at an Amazon fulfillment center for over 365 days (a long-term storage fee).
Amazon fees chart for dangerous goods storage
Amazon long-term storage fees
Long-term storage fees apply to items that have been stored at an Amazon fulfillment center for over 365 days.
Long-term storage fees are added to your monthly inventory storage fees. If you submit a pickup order for items before the next inventory cleanup date, those items will not be charged long term storage fees.
How do I calculate commissions for FBA products?
To assess the commission on goods sold via the FBA program, Amazon has created a special online calculator where you will need to enter your fulfillment costs so you can compare profitability between your fulfillment method and FBA.
Other costs
If you want to see the exact cost of selling on the platform, be sure to consider the other selling costs and other additional programs designed to help you increase sales.
Additional sales commissions include:
– Inventory fees
If you store inventory in an Amazon fulfillment center in addition to monthly inventory storage fees, you may incur other fees, such long-term storage fees and removal order fees.
– Textbook rental service fees
If you offer rental of textbooks, you should pay a $ 5 book rental fee for each rental.
– High volume listing fees
If you have a large number of active non-media listings that have not sold in 12 months, Amazon will charge a monthly fee of $ 0.005 per listing to cover cataloging costs.
– Refund fees
If you refund a customer for an order for which you have already received payment, Amazon will refund you the amount of the referral fee you paid for the item(s) minus the applicable return administration fee, which is the lower of $ 5.00, or 20% of the referral fee.
Optional programs fees (excluding FBA)
Advertising
Amazon Advertising uses an auction-based pricing model (cost-per-click) – you set the maximum amount you’re willing to pay for every potential customer click. We talked about this topic sooo much. Click here to find more!
Inventory placement service
By default, when you submit inventory to an Amazon fulfillment center, you may have to submit your inventory in multiple shipments, each directed to a different receipt center or fulfillment center, depending on the items you are shipping and where you are shipping from. By distributing your inventory across multiple fulfillment centers across the country, customers can receive it faster than if your inventory was located further away.
Amazon’s inventory placement service allows sellers to ship all eligible inventory to a single pickup or fulfillment center. When your package arrives, Amazon splits your inventory and sends it to different fulfillment centers. A service charge is charged per item.
Amazon-partnered carrier program
Amazon partner carriers offer discounts when shipping inventory to an Amazon fulfillment center.
Premium account services
Available premium account management services and other courses on Amazon will help you craft your business plan, offer personalized training, and provide information to help you grow your Amazon sales.
Stay tuned for Amazon updates
We are recommending you follow Amazon website and their policies as Amazon loves changing their rules…quite often 🙂
But we, in our turn, are ready to help you. Ask your questions below or contact us to share your issue with us.
0