What Are Amazon FBA Fees?
Selling a product on the Amazon marketplace is not just about sending the products and waiting for your profit.
Since Amazon handles all the packaging and shipping of your product from their store when a customer buys one, there are specific fees that you must pay to amazon for their services.
Amazon is even willing to store your product for you in most cases.
All these run up into some significant expenses on Amazon’s part that they must recoup. As an FBA seller on Amazon, you will need to pay these fees as “Amazon FBA Cost.”
Looking Deeper into FBA Amazon fees
The FBA Amazon fee depends on some product specifications that include:
- Your product’s weight
- Your product’s size
- Your sales Channel (Are you selling from an external site or on Amazon).
Amazon considers these factors and more when calculating for your FBA fees. So, before you start with the Amazon marketplace, it is ideal that you calculate these costs into your profit margin.
Different sale methods will result in various fees, and this is ever more apparent if “fulfillment by Amazon” is your sale option.
Some extra costs are:
- Fulfillment fees - To cover the expenses to Amazon of getting your items to your customer, you will pay some fulfillment by Amazon fees.
- Inventory fees - These fees are for those who sell their products from Amazon storage facilities.
Other Amazon FBA Fees to Consider
Including the FBA costs we already mentioned above, there are still a few additional smaller fees that you will need to pay Amazon to sell on their market. They include:
- Selling fees : The price is 0.99 cents per product if your plan is individual.
- Referral fees : This fee is category-specific, and you’ll pay per-item.
- Removal order fees : This fee is also charged per-item when you move your product from Amazon’s storage.
- Returns processing fees : When your customer returns an item that they got by free shipping order, Amazon will charge this fee to you.
Amazon FBA Fee Depends on Product Size and Weight
As we already stated above, Your FBA fees will depend on the size of your product. Below are the current charges.
Note: These fees may change at any time
Item Size - Price
Small (<10 ounce) - $2.41
Small (10-16 ounce) - $2.48
Large (<10 ounce) - $3.19
Larges (10-16 ounce) - $3.28
Large (1-2 pounds) - $.4.76
Large (2-3 pounds) - $5.26
Large (3-21 pounds) - $5.26 (plus $0.38 per pound after the first 3 pounds)
Item Size - Item Price
Small (<71 pounds) - $8.26 (plus $0.38 per pound after the first 2 pounds)
Medium (<151 pounds) - $9.79 (plus $0.39 per pound after the first 2 pounds)
Large (<151 pounds) - $75.78 (plus $0.79 per pound after the first 90 pounds)
$137.32 (plus $0.91 per pound above the first 90 pounds)
Amazon gives extra consideration for apparel sellers in their market place. There is a $0.40 per item fulfillment charge that comes with selling apparels on Amazon, so if you aim to sell apparels, your overall FBA fees will be significantly higher than other categories.
As an example, a cloth that has a shipping weight of up to 1.2 pounds will give you an overall FBA cost that adds up to about $5.19 per unit.
Why Should You Consider FBA Despite Fulfillment by Amazon Fee?
Reach A Wider Audience
Amazon is the world’s largest marketplace on the net. That means that If you want to reach the widest audience, there is no better platform to be. With your product listed on Amazon , you are assured that more than one person is looking at your item and considering if they want to buy it.
Eliminate All the Hard Work
With Amazon, storage, packaging, and shipping are no longer things that should worry you.
Since these play a significant role in the stress involved in e-commerce, you just saved yourself a lot of unnecessary work, and you can focus entirely on making better products.
Scale Amazon FBA
The opportunity to scale Amazon’s FBA program has made a lot of people very rich.
With high customer retention and millions of customers visiting their marketplace every month, you can go from selling a dozen items to selling out entire warehouses with the right product in less than a year.