amazon fba fee
Did you know that in 2022, Amazon accounted for a whopping 37.7% of all e-commerce sales in the United States?
As an Amazon seller, you’re likely aware of the massive potential for profit that comes with selling on the world’s largest online marketplace.
However, navigating the fees associated with Amazon’s FBA service can be a daunting task for even the most experienced sellers. That’s why we’ve put together this comprehensive guide to Amazon FBA fees for 2023, so you can stay ahead of the curve and optimize your profits in the coming year.
Through a detailed breakdown of storage fees, fulfillment fees, and other charges associated with selling on Amazon, we’ll show you how to make the most of your business and capitalize on the enormous potential of the e-commerce giant.
So if you’re ready to take your Amazon business to new heights in 2023, join us as we explore the ins and outs of Amazon FBA fees and discover the key to unlocking your true profit potential.
Quick Guide
Amazon FBA (Fulfillment by Amazon) is a program offered by Amazon that allows third-party sellers to use Amazon’s vast network of warehouses and distribution centers to store, package, and ship their products to customers. The significance of Amazon FBA lies in the fact that it provides sellers with a streamlined and efficient way to manage their inventory and fulfill customer orders, without the need for their own warehousing or shipping infrastructure.
By utilizing Amazon FBA, sellers can take advantage of Amazon’s world-class logistics capabilities and tap into a massive customer base without having to worry about the logistical challenges of storing, packing, and shipping products themselves. This means that sellers can focus on other aspects of their business, such as marketing, product development, and customer service, while Amazon takes care of the day-to-day logistics.
Overall, the significance of Amazon FBA lies in its ability to simplify the logistics of selling on Amazon and provide sellers with a powerful tool to expand their business and reach more customers.
If you choose to use FBA, then you will get plenty of benefits in which the most important ones are given here:
With FBA, all Amazon.com customers can get free shipping on eligible orders and if your products are eligible for Amazon Prime then you will get the option of free Two-Day Shipping.
Amazon FBA manages returns for sellers, enabling customers to send items back to Amazon for hassle-free returns. Additionally, Amazon’s customer service team handles inquiries and issues from customers, freeing up seller time to focus on other business aspects. This can lead to more efficient operations and improved customer experiences.
Programs like FBA Subscribe & Save, FBA Small and Light, Multi-Channel Fulfillment, and FBA Export can help you increase sales and promote customer loyalty.
Select from optional services including product labeling, repackaging, and product preparation, as well as carrier options that are partnered with Amazon.
The services mentioned above are not offered without cost and are subject to an Amazon FBA fee. The Amazon FBA fee is based on three primary factors:
The product’s weight – A volumetric weight calculation for your Amazon product.
The product’s size is also known as dimensions.
The type of product and the category it belongs to. It can be electronics, handmade, sports, etc.
Channels on which products are sold – Amazon or third-party sites
If you are selling a product through Fulfillment by Amazon, then the Amazon Fulfillment Fees and Monthly Storage Fees are the most important fees you will deal with.
You are likely familiar with Fulfillment by Amazon if you sell your products on Amazon. This package includes pretty much everything, from helping your customers with issues regarding shipping, payments, returns, etc., to picking, packing, and shipping the products to customers. These fees are based on the dimensions and weight of the products you are selling on the Amazon marketplace.
On January 17, 2023, US FBA fulfillment costs for 2023 (excluding apparel) came into effect. For all large standard-size and oversize items, excluding special oversize, the shipment weight will be calculated based on the unit weight or dimensional weight, whichever is higher.
| Size tier and Shipping weight | Fulfillment fee per unit |
|---|---|
| Small standard 4 oz or less | $3.22 |
| Small standard 4+ to 8 oz | $3.40 |
| Small standard 8+ to 12 oz | $3.58 |
| Small standard 12+ to 16 oz | $3.77 |
| Large standard 4 oz or less | $3.86 |
| Large standard 4+ to 8 oz | $4.08 |
| Large standard 8+ to 12 oz | $4.24 |
| Large standard 12+ to 16 oz | $4.75 |
| Large standard 1+ to 1.5 lb | $5.40 |
| Large standard 1.5+ to 2lb | $5.69 |
| Large standard 2+ to 2.5 lb | $6.10 |
| Large standard 2.5+ to 3 lb | $6.39 |
| Large standard 3+ lb to 20 lb | $7.17 + $0.16/ half-lb above first 3 lb |
| Size tier and Shipping weight | Max dimension | Fulfillment fee per unit |
|---|---|---|
| Small oversize 70 lb or less | 60” x 30” | $9.73 + $0.42/lb above first lb |
| Medium oversize 150 lb or less | 108” (longest side) | $19.05 + $0.42/lb above first lb |
| Large oversize 150 lb or less | 108” (longest side) | $89.98 + $0.83/lb above first 90 lbs |
| Special oversize Over 150 lb | > 108” (longest side) | $158.49 + $0.83/lb above first 90 lbs |
In addition to the charges mentioned above, there is another charge you need to consider if you are selling clothing items.
On January 17, 2023, the US FBA fees for apparel items came into effect. For standard items that weigh more than 0.75 pounds and are oversize, excluding special oversize, the shipping weight will be calculated by whichever is greater; unit weight or dimensional weight. Starting on February 16, 2023, the dimensional weight or the unit weight, whichever is greater is used to calculate the shipping weight for all large standard-size and oversized units, except for special oversize.
| Size tier and Shipping weight | Fulfillment fee per unit |
|---|---|
| Small standard 4 oz or less | $3.43 |
| Small standard 4+ to 8 oz | $3.58 |
| Small standard 8+ to 12 oz | $3.87 |
| Small standard 12+ to 16 oz | $4.15 |
| Large standard 4 oz or less | $4.43 |
| Large standard 4+ to 8 oz | $4.63 |
| Large standard 8+ to 12 oz | $4.84 |
| Large standard 12+ to 16 oz | $5.32 |
| Large standard 1+ to 1.5 lb | $6.10 |
| Large standard 1.5+ to 2 lb | $6.37 |
| Large standard 2+ to 2.5 lb | $6.83 |
| Large standard 2.5+ to 3 lb | $7.05 |
| Large standard 3+ lb to 20 lb | $7.17 + $0.16/ half-lb above first 3 lb |
| Size tier and Shipping weight | Max dimension | Fulfillment Fee per unit |
|---|---|---|
| Small oversize 70 lb or less | 60” x 30” | $9.73 + $0.42/lb above first lb |
| Medium oversize 150 lb or less | 108” (longest side) | $19.05 + $0.42/lb above first lb |
| Large oversize 150 lb or less | 108” (longest side) | $89.98 + $0.83/lb above first 90 lbs |
| Special oversize Over 150 lb | >108” (longest side) | $158.49 + $0.83/lb above first 90 lbs |
On January 17, the 2023 US Fulfillment by Amazon fees for dangerous goods came into effect. FBA has different fulfillment fees for dangerous goods (also known as hazardous materials or hazmat) because they need specific handling and storage.
| Size tier and Shipping weight | Fulfillment fee per unit |
|---|---|
| Small standard 4 oz or less | $4.19 |
| Small standard 4+ to 8 oz | $4.48 |
| Small standard 8+ to 12 oz | $4.64 |
| Small standard 12+ to 16 oz | $4.37 |
| Large standard 4 oz or less | $4.64 |
| Large standard 4+ to 8 oz | $4.89 |
| Large standard 8+ to 12 oz | $5.03 |
| Large standard 12+ to 16 oz | $5.34 |
| Large standard 1+ to 1.5 lb | $6.00 |
| Large standard 1.5+ to 2 lb | $6.29 |
| Large standard 2+ to 2.5 lb | $6.56 |
| Large standard 2.5+ to 3 lb | $6.85 |
| Large standard 3+ lb to 20 lb | $7.63 + $0.16/ half-lb above first 3 lb |
| Size tier and weight | Max dimension | Fulfillment fee per unit |
|---|---|---|
| Small oversize 70 lb or less | 60” x 30” | $10.48 + $0.42/ lb above first lb |
| Medium oversize 150 lb or less | 108” (longest side) | $19.92 + $0.42/ lb above first lb |
| Large oversize 150 lb or less | 108” (longest side) | $101.91 + $0.83/ lb above first 90 lb |
| Special oversize Over 150 lb | >108” (longest side) | $179.28 + $0.83/ lb above first 90 lb |
Amazon’s FBA Small & Light program reduces fulfillment costs for products that satisfy specific requirements, such as weight, size, and price. It helps sellers to provide customers with lightweight, and small products at affordable prices. With FBA Small and light, you’ll receive benefits like
From January 17, 2023, the following FBA Small and Light program fee comes into effect.
| Size tier and Shipping weight | Dimensions | Fulfillment Fee |
|---|---|---|
| FBA Small & Light small standard 4 oz or less | 15 x 12 x 0.75 inches or less | $2.47 |
| FBA Small & Light small standard 4+ to 8 oz | 15 x 12 x 0.75 inches or less | $2.54 |
| FBA Small & Light small standard 8+ to 12 oz | 15 x 12 x 0.75 inches or less | $2.61 |
| FBA Small & Light small standard 12+ to 16 oz | 15 x 12 x 0.75 inches or less | $3.15 |
| FBA Small & Light large standard 4 oz or less | 18 x 14 x 8 inches or less | 2.66 |
| FBA Small & Light large standard 4+ to 8 oz | 18 x 14 x 8 inches or less | $2.77 |
| FBA Small & Light large standard 8+ to 12 oz | 18 x 14 x 8 inches or less | $2.94 |
| FBA Small & Light large standard 12+ to 16 oz | 18 x 14 x 8 inches or less | $3.77 |
| FBA Small & Light large standard 6+ oz to 1.5 lb | 18 x 14 x 8 inches or less | $4.42 |
| FBA Small & Light large standard 1.5+ to 2 lb | 18 x 14 x 8 inches or less | $4.68 |
| FBA Small & Light large standard 2+ to 2.5 lb | 18 x 14 x 8 inches or less | $5.19 |
| FBA Small & Light large standard .5+ to 3 lb | 18 x 14 x 8 inches or less | $5.40 |
The shipping weight of an item is determined by either its unit weight or its dimensional weight.
Starting August 29, 2023, US FBA will introduce lower rates for items priced below $10. This change aims to simplify fee structures and provide faster delivery speeds. Eligible items will automatically receive the new rates and will not be subject to holiday peak fulfillment fees from October 15, 2023, to January 14, 2024.
As a result of this update, the Small and Light program in the US will be closed on August 29. Until then, enrolled items will continue to have Small and Light rates applied, and new product enrollment will end on July 17.
The new FBA rates for low-price products will be approximately $0.77 lower per item compared to the current rates. If your products were part of the Small and Light program and priced below $10, you will pay around $0.30 more per item but benefit from faster fulfillment speeds. If your products were not part of Small and Light and priced below $10, you will pay about $0.77 less per item while maintaining fast FBA fulfillment speeds. For items priced above $10, standard FBA rates and shipping speeds will apply automatically.
To know more about the latest FBA rates, check this link.
Note: For large standard units, the shipping weight will be calculated based on the higher weight between the unit weight and dimensional weight. However, for small standard-size units, the shipping weight will be based on the unit weight only.
Amazon regularly updates its fee structure to enhance the seller experience, and they have recently announced changes to the FBA Fulfillment Fee, effective April 15, 2024.
The FBA fulfillment fees for standard-sized products have to be reduced by $0.20 per unit, while large bulky-sized products will enjoy a reduction of $0.61 per unit. Additionally, there is an extra discount of $0.77 per unit for products priced below $10.
Note: The shipping weight of an item is determined by either its unit weight or its dimensional weight.
To facilitate the ease of managing inventory, Amazon has introduced changes to the Inbound Placement Service Fee, effective March 1, 2024. The new rates are as follows:
It’s important to note that fees can be reduced or avoided based on shipment locations, offering sellers flexibility and cost-saving options.
When a seller places a removal or disposal order through Amazon FBA, the corresponding removal and disposal fees are calculated at that time. These fees are charged at the agreed-upon rate when the items are shipped out from the Amazon fulfillment centers. The adjusted removal and disposal order fees are below:
| Shipping weight | Removal or disposal fee per unit |
|---|---|
| 0 to 0.5 lb | $0.97 |
| 0.5+ to 1.0 lb | $1.46 |
| 1.0+ to 2.0 lb | $2.20 |
| More than 2 lb | $2.83 + $1.06/ lb above 2 lb |
| Shipping weight | Removal or disposal fee per unit |
|---|---|
| 0 to 1.0 lb | $3.12 |
| 1.0+ to 2.0 lb | $4.07 |
| 2.0+ to 4.0 lb | $5.56 |
| 4.0+ to 10.0 lb | $9.43 |
| More than 10.0 lb | $13.05 + $1.06/lb above 10 lb |
Here, special handling items would include shoes, watches, apparel, jewelry, and dangerous goods.
You can use Amazon FBA for products sold through online channels other than Amazon. If you have a website specifically for your product, for instance, you can utilize Amazon FBA to fulfill orders without worrying about doing it yourself. Amazon refers to it as Multi-channel fulfillment or MCF. It’s important to keep in mind that Amazon FBA fees for MCF are rather higher.
Amazon is aware that you can provide a variety of shipping choices for the products that are featured on your site. In consideration of this, Fulfillment by Amazon has created its own MCF rates for a range of shipping options, including Standard (3-5 days), Expedited (2-day), and Priority (Next-day shipping). The prices are mentioned below.
Note that the MCF fulfillment fees changed after Jan 19, 2023. Here are the details for you.
| Size Tier | 1 unit order | 2 unit order | 3 unit order | 4 unit order |
|---|---|---|---|---|
| Small Standard 6 oz or less | $7.15 | $4.92 | $4.19 | $3.72 |
| Small Standard 6 to 12 oz | $7.80 | $5.49 | $4.72 | $4.23 |
| Small Standard 12 to 16 oz | $8.25 | $5.70 | $4.88 | $4.38 |
| Large Standard 6 oz or less | $7.35 | $5.05 | $4.49 | $4.08 |
| Large Standard 6 to 12 oz | $8.20 | $5.80 | $4.90 | $4.50 |
| Large Standard 12 to 16 oz | $8.50 | $6.05 | $5.15 | $4.70 |
| Large Standard 1 to 2 lb | $9.50 | $6.65 | $5.88 | $4.75 |
| Large Standard Above 2 lb | $9.50 + $0.62/lb | $6.65 + $0.55/lb | $5.88 + $0.55/lb | $4.75 + 0.55/lb |
| Small oversize 2 to 30 lb | $16.00 + $0.62/lb | $11.79 + $0.55/lb | $10.18 + $0.55/lb | $8.62 + $0.55/lb |
| Size tier | Unit Orders |
|---|---|
| Small oversize Above 30 lb | $32.88 + $0.62/lb |
| Medium oversize Above first 2 lb | $25.25 + $0.62/lb |
| Large oversize Above first 90 lb | $118.80 + $1.16/lb |
| Special oversize Above first 90 lb | $189.19 + $1.21/lb |
| Size tier | 1 unit order | 2 unit order | 3 unit order | 4 unit order |
|---|---|---|---|---|
| Small standard 6 oz or less | $9.37 | $5.62 | $4.40 | $3.80 |
| Small standard 6 to 12 oz | $9.66 | $6.14 | $5.00 | $4.50 |
| Small standard 12 to 16 oz | $11.50 | $6.67 | $5.61 | $4.70 |
| Large standard 6 oz or less | $9.53 | $5.62 | $4.57 | $4.15 |
| Large standard 6 to 12 oz | $10.35 | $6.14 | $5.12 | $4.80 |
| Large standard 12 to 16 oz | $11.50 | $6.67 | $5.61 | $4.95 |
| Large standard 1 to 2 lb | $12.00 | $7.10 | $5.90 | $5.44 |
| Large standard above 2 lb | $12.00 + $0.62/lb | $7.10 + $0.62/lb | $5.90 + $0.62/lb | $5.44 + $0.62/lb |
| Small oversize 2 to 30 lb | $17.66 + $0.62/lb | $12.83 + $0.62/lb | $12.10 + $0.62/lb | $11.75 + $0.62/lb |
| Size tier | Unit Orders |
|---|---|
| Small oversize Over 30 lb | $35.45 + $0.62/lb |
| Medium oversize Above first 2 lb | $30.06 + $0.62/lb |
| Large oversize Above first 90 lb | $135.19 + $1.25/lb |
| Special oversize Above first 90 lb | $225.17 + $1.32/lb |
| Size tier | 1 unit order | 2 unit order | 3 unit order | 4 unit order |
|---|---|---|---|---|
| Small standard 16 oz or less | $18.03 | $9.60 | $7.00 | $6.35 |
| Large standard 16 oz or less | $18.58 | $10.20 | $8.30 | $7.55 |
| Large standard 1 to 2 lb | $20.70 | $11.81 | $8.98 | $8.00 |
| Large standard Above 2 lb | $20.70 + $0.65/lb | $11.81 + $0.65/lb | $8.98 + $0.65/lb | $8.00 + $0.65/lb |
| Small oversize 2 to 30 lb | $31.11 + $0.65/lb | $16.89 + $0.65/lb | $13.00 + $0.65/lb | $12.31 + $0.65/lb |
| Size tier | Unit Orders |
|---|---|
| Small oversize Over 30 lb | $47.96 + $0.65/lb |
| Medium oversize Above first 2 lb | $37.58 + $0.65/lb |
| Large oversize Above first 90 lb | $183.70 + $1.25/lb |
| Special oversize Above first 90 lb | $305.91 + $1.32/lb |
| Product size tier | Unit weight | Longest side | Median side | Shortest side | Length + girth |
|---|---|---|---|---|---|
| Small standard | 16 oz | 15 inches | 12 inches | 0.75 inch | N/A |
| Large standard | 20 lb | 18 inches | 14 inches | 8 inches | N/A |
| Product size tier | Unit weight | Longest side | Median side | Shortest side | Length + girth |
|---|---|---|---|---|---|
| Small oversize | 70 lb | 60 inches | 30 inches | N/A | 130 inches |
| Medium oversize | 150 lb | 108 inches | N/A | N/A | 130 inches |
| Large oversize | 150 lb | 108 inches | N/A | N/A | 165 inches |
| Small oversize | Over 150 lb | Over 108 inches | N/A | N/A | Over 165 inches |
For both domestic orders and export orders, MCF charges fulfillment fees. Use the fee calculator on Amazon to see an estimate of your MCF fees. You can find all these in your Amazon Seller Central dashboard.
Amazon continues to innovate its programs to benefit sellers. The Ships in Product Packaging (SIPP) Program, effective from February 5, 2024, provides fulfillment fee discounts ranging from $0.04 to $1.32.
Sellers that wish to store their inventory in Amazon’s fulfillment centers must pay Amazon a monthly inventory storage fee. These fees are assessed between the 7th and 15th of the following month and are based on two product size tiers – the standard size and oversize.
Depending on the product size tier and the season, Amazon charges different monthly storage fees, which are calculated per cubic foot. Typically, storage fees increase from October to December, when fulfillment facilities worldwide are operating at full capacity due to the busy Christmas shopping season.
Off-peak monthly inventory storage fees (January – September) will increase by $0.04 for standard-size products and $0.03 for oversize products as of February 1, 2023. This change will first be reflected in March 2023 charges for storage that occur in February 2023.
Peak monthly inventory storage fees for oversize products (October – December) will increase by $0.20 per cubic foot as of October 1, 2023. This change will first be reflected in November 2023 charges for storage that occur in October 2023. Peak monthly inventory storage fees for standard-size products remain unchanged.
| Month | Standard size | Oversize |
|---|---|---|
| January - September | $0.83 per cubic foot | $0.53 per cubic foot |
| October - December | $2.40 per cubic foot | $1.20 per cubic foot |
| Month | Standard size | Oversize |
|---|---|---|
| January - September | $0.87 per cubic foot | $0.56 per cubic foot |
| October - December | $2.40 per cubic foot | $1.40 per cubic foot |
Amazon did not specify any changes for dangerous goods’ fees.
| Month | Standard size | Oversize |
|---|---|---|
| January - September | $0.99 per cubic foot | $0.78 per cubic foot |
| October - December | $3.63 per cubic foot | $2.43 per cubic foot |
Also, Amazon charges a long-term storage fee for products that are kept in the fulfillment facility for longer than 365 days. On the 15th of every month, Amazon calculates the long-term storage fees.
Thus, if you want to calculate your accurate storage fee, then try this FBA calculator.
Starting from April 1, 2023, Amazon introduces a storage utilization surcharge for the monthly storage fee. The surcharge will be based on the storage utilization ratio. Amazon FBA will calculate the storage utilization ratio on the last day of the given month. For example, if you have stored your inventory in April 2023, then Amazon FBA will calculate the storage utilization ratio on April 30th and will apply the surcharge in May 2023 storage fee charges.
Note: The surcharge will be applied only for professional sellers with a storage utilization ratio above 26 weeks. If you meet the criteria for the storage utilization surcharge, the surcharge will be charged to the daily average volume for the space that your inventory occupies in fulfillment centers in addition to your standard monthly storage fee, resulting in a higher total storage fee.
| Standard-size | Standard-size | Standard-size | Oversize | Oversize | Oversize | |
|---|---|---|---|---|---|---|
| Storage utilization ratio | Base monthly storage fee | Storage utilization surcharge | Total monthly storage fee | Base monthly storage fee | Storage utilization surcharge | Total monthly storage fee |
| Below 26 weeks | $0.87 per cubic foot | N/A | $0.87 per cubic foot | $0.56 per cubic foot | N/A | $0.56 per cubic foot |
| 26 - 39 weeks | $0.87 per cubic foot | $0.69 per cubic foot | $1.56 per cubic foot | $0.56 per cubic foot | $0.46 per cubic foot | $1.02 per cubic foot |
| 39+ weeks | $0.87 per cubic foot | $0.94 per cubic foot | $1.81 per cubic foot | $0.56 per cubic foot | $0.63 per cubic foot | $1.19 per cubic foot |
| New sellers, sellers with Individual selling accounts, and sellers with less than 25 cubic feet daily volume | $0.87 per cubic foot | N/A | $0.87 per cubic foot | $0.56 per cubic foot | N/A | $0.56 per cubic foot |
| Standard-size | Standard-size | Standard-size | Oversize | Oversize | Oversize | |
|---|---|---|---|---|---|---|
| Storage utilization ratio | Base monthly storage fee | Storage utilization surcharge | Total monthly storage fee | Base monthly storage fee | Storage utilization surcharge | Total monthly storage fee |
| Below 26 weeks | $2.40 per cubic foot | N/A | $2.40 per cubic foot | $1.40 per cubic foot | N/A | $1.40 per cubic foot |
| 26 - 39 weeks | $2.40 per cubic foot | $0.69 per cubic foot | $3.09 per cubic foot | $1.40 per cubic foot | $0.46 per cubic foot | $1.86 per cubic foot |
| 39+ weeks | $2.40 per cubic foot | $0.94 per cubic foot | $3.34 per cubic foot | $1.40 per cubic foot | $0.63 per cubic foot | $2.03 per cubic foot |
| New sellers, sellers with Individual selling accounts, and sellers with less than 25 cubic feet daily volume | $2.40 per cubic foot | N/A | $2.40 per cubic foot | $1.40 per cubic foot | N/A | $1.40 per cubic foot |
From April 15, 2023, Amazon increases the granularity and magnitude of the aged inventory surcharge (also known as long-term storage fee) on inventory stored between 271 to 365 days. Also, Amazon will introduce new tiers to begin the aged inventory surcharge on inventory aged 181 to 270 days for all products except items listed under the clothing, shoes, bags, jewelry, and watches categories in the US.
Till April 15, 2023
| Inventory assessment date | Items aged 181-210 days | Items aged 211-240 days | Items aged 241-270 days | Items aged 271-300 days | Items aged 301-330 days | Items aged 331-365 days | Items aged 365 days or more |
|---|---|---|---|---|---|---|---|
| Monthly (every 15th of the month) | N/A | N/A | N/A | $1.50 per cubic foot | $1.50 per cubic foot | $1.50 per cubic foot | $6.90 per cubic foot or $0.15 per unit, whichever is greater |
From April 15, 2023, and after
| Inventory assessment date | Items aged 181-210 days | Items aged 211-240 days | Items aged 241-270 days | Items aged 271-300 days | Items aged 301-330 days | Items aged 331-365 days | Items aged 365 days or more |
|---|---|---|---|---|---|---|---|
| Monthly (every 15th of the month) | $0.50 per cubic foot (excluding certain items) | $1.00 per cubic foot (excluding certain items) | $1.50 per cubic foot (excluding certain items) | $3.80 per cubic foot | $4.00 per cubic foot | $4.20 per cubic foot | $6.90 per cubic foot or $0.15 per unit, whichever is greater |
Starting April 1, 2024, Amazon will introduce the Low-Inventory-Level Fee for standard-sized products. This fee is aimed at encouraging sellers to maintain optimal inventory levels and ensure prompt order fulfillment.
Amazon’s referral fees are a commission that sellers pay to Amazon for each item sold on their platform. Referral fees vary depending on the category of the product being sold and typically range from 6% to 45% of the item’s sale price, with a minimum fee of $0.30 per item.
The referral fee is charged to cover the cost of Amazon’s services, including providing a platform for sellers to list their products, handling payment processing and fulfillment, and offering customer service and returns management. The fee is deducted from the seller’s earnings before they are paid out.
However, Amazon has announced that it will not be making any changes to its referral fees, as they are essential in providing sellers with access to a large customer base, secure payment processing, and other valuable services. Thus, the company has decided to remove certain fee categories, namely Collectible Coins, Entertainment Collectibles, Sports Collectibles, and Collectible Cards. As a result, products within these categories will be re-categorized to their most appropriate product category, which may result in different referral fees, either lower or higher, for the re-categorized products.
You must keep in mind the following fees in addition to the ones listed above if you choose Fulfillment by Amazon. These fees need to be watched out or else, they could reduce your profits.
If your inventory in Amazon’s fulfillment centers exceeds the allocated capacity limit, you will be charged an inventory storage overage fee in addition to monthly storage fees and, if applicable, an aged inventory surcharge.
This fee is based on the number of days your inventory exceeds the capacity limit, and it will be charged regardless of whether your inventory is later reduced to a level below the limit. The overage fee is calculated at a rate of $10 per cubic foot, based on the daily average volume measured in cubic feet, for any space, your inventory occupies in the fulfillment center that exceeds your capacity limit.
If a seller wants to ensure that their products are properly packed and prepared for fulfillment then use this FBA Prep service. With the correct package and prep help, you can reduce delays in receiving time, protect your products and create better customer service. If you use this, Amazon will prepare your eligible products for a per-unit fee. Amazon will provide you with an estimated prep fee based on the expected service for the selected product.
If a unit is labeled and received using the FBA label service, then a fee of $0.55 is charged for each unit. You can change your default setting to FBA label service whenever you wish to.
If you have sent to Amazon any products that did not include the required label or prep when they arrived at the fulfillment center. Then in some circumstances, FBA may charge you an unplanned service fee. These fees are charged per unit.
Instead of having Amazon split up your shipment into multiple shipments, each going to a different center, you can sign up for FBA Inventory Placement Service to send all of your qualified inventory to a single fulfillment center. However, there is a fee associated if you want to use this service.
Amazon offers return shipping for products sold under certain categories. The FBA return processing fee is applicable in such cases.
The return processing fees are charged for every item returned in the clothing and shoe categories. Amazon does not charge return processing fees for items returned in watches, jewelry, luggage, handbags, and sunglasses.
If this export service is offered in your nation, FBA enables you to export your products to many other nations. As a result, depending on the sales channel you are using, an export fee may be charged for your products.
For more information about these services and their fees, you can log into your Amazon Seller Central dashboard. You will be able to find the changes in some fees during 2023 in the dashboard itself.
Amazon FBA Fees Guide provides valuable information for sellers on the costs associated with using Amazon’s fulfillment services. The guide outlines various fees, such as storage fees, fulfillment fees, and referral fees, and explains how these fees are calculated. Sellers need to factor in these fees when setting prices for their products to ensure that they are making a profit on their sales. Overall, understanding the FBA fees guide is crucial for any seller looking to use Amazon’s fulfillment services effectively and efficiently.
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View Comments
Thanks for this wonderful post, Ankitha can you please recommend any tool for calculate fba fees & profit
Glad you liked it,
Please check out our free fba calculator
Amazon customer service. Needless to mention, all of these services come again price, often dubbed as Amazon FBA fee. Amazon does all of this so smoothly barely feel the need to trouble themselves with Amazon.
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