What is Amazon FBA Fees
As an Amazon FBA seller, there are costs you pay to Amazon to sell your items on the Amazon marketplace. When a customer makes a purchase on your item, Amazon is responsible for packing and shipping the products to your customer successfully.
Apart from shipping and packing your items, in some cases, Amazon also stores your item in its facility. All these services amount to some individual costs. It may be a simple task when a single item is sold, but when multiple items are to be sold, it becomes a lot of work.
For these services to be rendered to you as an FBA seller, you are charged what is called the amazon FBA fee.
A deeper look into FBA fees
The FBA fees are dependent on three major factors:
- The item’s weight
- The item’s size
- The sales channel(Selling directly on Amazon or from external sources)
All these factors are put into consideration when amazon charges you for FBA fees. So, before you get started, you probably want to look into these factors to get as much profit as possible.
If you are selling your items with the fulfillment by Amazon option, you have other fees to worry about. They are:
Fulfillment fees - You pay the Amazon fulfillment fees to cover the processes Amazon goes through to get your products to your customers.
Inventory fees - These fees are levied on you if your products are stored in Amazon’s storage facilities.
Other FBA Amazon fees to consider
Apart from the aforementioned fees, there are other smaller costs that come with selling on the Amazon marketplace. Some other costs are:
- Selling fees : If you opt for an individual selling plan, you will pay 0.99 cents per item sold.
- Referral fees : This fee is different for every category, and it is charged for every item sold on Amazon
- Removal order fees : The removal order fees are charged on a per-item basis. Amazon removes this fee when an item is removed from the Amazon warehouse.
- Returns processing fees : It is charged when a customer returns products sold on Amazon in the categories where Amazon offers free return shipping.
Amazon FBA fees according to item sizes
It is important to note that some of the prices below are not finite, and can change at any time due to varying factors.
Item Size / Price
- Small (10 oz or less) - $2.41
- Small (10 oz to 16 oz) - $2.48
- Large (10 oz or less) - $3.19
- Larges (10 oz to 16 oz) - $3.28
- Large (1lb - 2lb) - $.4.76
- Large (2 - 3lb) - $5.26
- Large (3 - 21lb) - $5.26 + $0.38/lb after the first 3 pounds
Item Size Item / Price
- Small oversize (71lb or less) $8.26 + $0.38/lb above the first 2 pounds
- Medium oversize (151lb or less) $9.79 + $0.39/lb above the first 2 pounds
- Large oversize (151lb or less) $75.78 + $0.79/lb above the first 90 pounds
$137.32 + $0.91/lb above the first 90 pounds
For apparel sellers, there are smaller changes that come with selling apparels on the Amazon platform:
For all apparel, there is a fulfillment charge of $0.40 per item sold. So, if you are looking to sell apparel on Amazon, your cost will be a bit higher than sellers in other categories.
As an example, if you are selling apparel that with the shipping coming at 1.2 pounds, then its amazon FBA cost will be $5.19 per unit.
Why you should consider FBA regardless of fulfillment by amazon fees.
Get a wider audience reach for your business
It’s evident that Amazon is the largest online market place in the world. What better place to market your product than Amazon? With your items listed on the platform, you are getting a wider audience and new eyeballs on your product.
Eliminates the hard work
Amazon has it all figured out. From packaging to fulfillment, you don’t have to worry about all the herculean tasks that come with e-commerce. You simply focus on making your products better, and Amazon does all the hard work for you.
Amazon FBA is scalable
Because of the high-level of scalability of the Amazon FBA program, many have become very successful through it. Warehousing, high customer retention, millions of monthly visitors and other benefits that come with selling on the Amazon platform make it very scalable.