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Amazon has helped thousands of businesses across the world leverage the opportunities that come with the ecommerce and expand their markets.

Sellers can not only use the Amazon platform to sell their products and increase their market share, but they can also make use of many business solutions offered by Amazon to enhance their sales numbers.

 

 

In this article, we will take a look at how FBA works and the associated Amazon FBA Fees.

Before we get started, remember that this Amazon FBA pricing or Amazon FBA fees is with respect to Amazon U.S. so these prices may vary.

A Quick Guide:

1. What are FBA Fees
2. Benefits of Paying FBA Fees
3. Understand Amazon FBA Pricing
4. Amazon FBA Fees For Products Sold On Amazon
5. Fees For Non-Amazon Products – Multi-Channel Fulfillment
6. Amazon FBA Monthly Storage Price
7. Other Charges To Consider Before You Start
8. FBA Fees vs Multi-Channel Fulfillment Fees
9. Fba Profit Calculation Based On Selling Price

 

 

Amazon FBA Fees Explained

To understand how Fulfillment by Amazon (FBA) works, let us consider the example of John and Chris who recently started their business on Amazon.

When a customer places an order for one of John’s products, John is tasked with the responsibility of packing it carefully and shipping it to the customer.

In addition to this, he is also responsible for storing the products and providing customer support to ensure that his customers are happy with his products.

While this may not seem that bad for a single product, it definitely becomes a Herculean task for John as his business begins to grow. Furthermore, considering that John is likely to do everything by himself, there may be a room for errors.

When it comes to Chris, however, he has delegated all of those duties to Amazon by choosing their Amazon FBA solution. All Chris has to do now is ship his products to Amazon and let it take care of the rest. Amazon not only stores his products in their highly secure fulfillment centers, but they also pack, ship, and provide customer service for these goods. By choosing Amazon FBA, Chris has effectively allowed a team of highly-trained professionals takes care of picking, storing, packing and shipping his products.

In addition to this, FBA has also enabled Chris to scale his business more quickly and expand his customer base.

Amazon FBA can be set up and configured on the Amazon Seller Central dashboard. The process is extremely simple, and owing to a plethora of tools, it is easy to track and monitor the product inventory.

 

Benefits of Amazon FBA Program

If you choose to go for Amazon FBA, you will be presented with plenty of benefits, the most notable of which are mentioned below.

• A significant edge over your competitors – When you sell your products through Amazon FBA, they automatically become eligible for Amazon Prime Free Two-Day Shipping, Free Shipping among other benefits. As a result, your products will feature the Amazon Prime logo, thus automatically reaching out to a wider audience.

• Ease of scaling your business empire – Since Amazon is fulfilling your orders, you don’t have to worry that much about the logistics part of your business. You can now focus on taking your business to the next step. As and when you begin to get more orders, you can easily fulfill them by storing your inventory in Amazon’s fulfillment centers.

• Better ranking in the search results – When it comes to Amazon’s search algorithm, FBA products get preference over Non-FBA products. This translates into better rankings in Amazon’s search results for products which are fulfilled via FBA, and correspondingly, more sales. You can see this for yourself – just go to Amazon and search for any product. A majority of products on the first page are likely to be Prime listings.
• Customer Service and Returns Provided – When it comes to shopping online, customers are more comfortable buying products which can be returned easily. In addition to this, if the customer service feature is available for a product, then it is more likely to be sold than the ones without the customer support.

 

Understand Amazon FBA Pricing

Needless to mention, the aforementioned excellent services come at a price known as Amazon FBA Fee. These prices depend on three primary factors:

• The weight of the product
• Size of the product also referred to as dimensions
• Channels on which the products are sold – Amazon, or an external site

If you are selling a product on Amazon through Fulfillment By Amazon, then you will mainly be dealing with two prices:

• Amazon Fulfillment Fees – This is the fees that you pay Amazon for having it fulfill your order. This covers all the processes that go into fulfilling an order – picking, packing, shipping, and providing customer service, and if applicable, return too. It is also worth mentioning that these fees are calculated per unit.
• Monthly Inventory Storage Fees – These costs are incurred if you decide to store your products in Amazon’s warehouses, also known as fulfillment centers. This depends on the space occupied by the products and is calculated per cubic foot.

Another thing that you need to consider is the size and weight of your products. As mentioned earlier, Amazon FBA pricing is based on how much your product weighs and its sizes. For the sake of simplification, Amazon has split its product size into two categories:

• Standard Size – For a product to fall under the standard-size item category, it should weigh less than 20 pounds when fully packed. Furthermore, its dimensions must not be more than
  18” x 14”x 8”.
• Oversize – Any product that exceeds these dimensions and the weight is considered to be oversized. For example, if a product weighs more than 20 pounds and exceeds 18 inches on its longest side, it will fall under the oversize category.

There are sub-divisions within these sizes and they have been highlighted in the table below.

PRODUCT SIZE CATEGORY	WEIGHT  (IN POUNDS)	LONGEST SIDE(INCHES)	MEDIAN  SIDE(INCHES)	SHORTEST SIDE (INCHES)	LENGTH +  GIRTH (INCHES)
Small standard-size	Equal to or Less than 12 lb.	15″	12″	0.75″	N/A
Large standard-size	Equal to or  Less than 20 lb.	18″	14″	8″	N/A
Small oversize	Equal to or Less than 70 lb.	60″	30″	N/A	130″
Medium oversize	Equal to or Less than 150 lb.	108″	N/A	N/A	130″
Large oversize	Equal to or  Less than 150 lb	108″	N/A	N/A	165″
Special oversize	Over 150 lb.	Over 108″	N/A	N/A	Over 165″

 

NEW AMAZON FBA FEES: HOW MUCH DOES AMAZON FBA COST 2019? – PRICING BREAKDOWN EXPLAINED

In this Amazon FBA Fees video, Ankitha will guide you through all the new and updated Amazon fees changes for 2019. There have been quite a few changes from the 2018 FBA fees, so pay attention!

This video will give you an understanding of how you can go about estimating the fees and all the additional costs that are required to jump on to the Amazon FBA program!

Now that we have understood how Amazon FBA prices work, we will take a look at these prices across various size categories in the sections below. Before we proceed, allow us to draw your attention to the part where we spoke about the channels through which the products are sold. It is important to remember that Amazon FBA fees for products sold on Amazon are different than the fees for the products that are sold on external sites. Therefore, we will be exploring these FBA fees for the two categories separately.To Calculate Fba Fees Check out this Awesome Amazon Fba Calculator Extension

 

Amazon FBA Fees For Products Sold on Amazon

If you are selling your products on Amazon, then the chances are you have already heard about Fulfillment by Amazon. This package covers pretty much everything, ranging from picking, packing, and shipping the goods to your customers to helping your clients deal with questions about shipping, payments, returns, etc. As explained earlier, these prices depend on the size and weight of the products that you are selling on Amazon’s platform.

Amazon Fulfilment Fess Per Unit

PRODUCTS SIZE	PRICE
Small (1 lb. or less)	$2.41
Small oversize	$8.13 + $0.38/lb. after the first 2 lb.
Large (1 lb. or less)	$3.19
Medium oversize	$9.44+ $0.38/lb. after the first 2 lb.
Large (1 lb. to 2 lb.)	$4.71
Large oversize	$73.18 + $0.79/lb. after the first 90 lb.
Large (over 2 lb.)	$4.71 +$0.38/lb. after the first 2 lb.
Special oversize	$137.32 + $0.91/lb. after the first 90 lb.

 

In addition to the charges mentioned above, there is another charge you need to consider if you are selling clothing items.

For all apparels, a fulfillment charge of $0.40 per unit will be levied.

For example, if you are selling a T-shirt that weights whose outbound shipping weight comes to 1.2 pounds, then its Amazon FBA fees will work out to be $5.19 per unit.

 

Amazon FBA Fees For Non-Amazon Products – Multi-Channel Fulfillment

You can also use Amazon FBA for products that are sold on channels other than Amazon. For instance, if you have a dedicated website for your product, then you can use Amazon FBA to fulfill your orders without having to worry about doing it yourself. Amazon calls this Multi-Channel Fulfillment or MCF for short. It is worth noting that Amazon FBA fees for MCF are relatively higher.

Amazon understands that you may have a variety of shipping options for the products listed on your site. With that in mind, Fulfillment by Amazon has designed its MCF fees for a variety of shipping options: Standard (3-5 days), Expedited (2-day), and Priority (Next day shipping). These prices have been mentioned in the tables below, for two product-size categories – Standard and Oversize.

 

Standard Shipping Fees For Standard-Size Products Per Unit

SIZE	1 UNIT ORDER	2 UNIT ORDER	3 UNIT ORDER	4 UNIT ORDER	5+ UNIT ORDER
Small(1lb or less)	$5.85	$3.75	$3.35	$3.25	$2.20
Large Products (1lb or less)	$5.90	$3.90	$3.40	$3.30	$2.80
Large(1lb to 2 lb)	$5.95	$3.95	$3.45	$3.35	$2.95
Large(More than 2 lb)	$5.95 + $0.39/lb	$3.95 + $0.39/lb	$3.45 + $0.39/lb	$3.35 + $0.39/lb	$2.95 + $0.39/lb

 

Standard Shipping Fees For Oversize Products Per Unit

Size	1 unit order	2 unit order	3 unit order	4 unit order	5+ unit order
Small: more than  first 2 lb	$12.30 + $0.39/lb	$6.80 + $0.39/lb	$5.80 + $0.39/lb	$4.80 + $0.39/lb	$3.80 + $0.39/lb
Medium: more than  first 2 lb	$15.30 + $0.39/lb
Large: more than first 90 lb	$78.30 + $0.80/lb
Special: more than first 90 lb	$143.30 + $0.92/lb

 

Expedited Shipping Fees For Oversize Products Per Unit

Size	1 unit order	2 unit order	3 unit order	4 unit order	5+ unit order
Small: more than  first 2 lb	$12.30 + $0.39/lb	$7.80 + $0.39/lb	$7.30 + $0.39/lb	$7.15 + $0.39/lb	$6.85 + $0.39/lb
Medium: more than  first 2 lb	$16.80 + $0.39/lb
Large: more than first 90 lb	$78.30 + $0.80/lb
Special: more than first 90 lb	$143.30 + $0.92/lb

 

Priority Shipping Fees For Oversize Products Per Unit 

Size	1 unit order	2 unit order	3 unit order	4 unit order	5+ unit order
Small: more than  first 2 lb	$20.80 + $0.39/lb	$11.30 + $0.39/lb	$8.20 + $0.39/lb	$7.70 + $0.39/lb	$7.30 + $0.39/lb
Medium: more than  first 2 lb	$31.30 + $0.39/lb
Large: more than first 90 lb	$78.30 + $0.80/lb
Special: more than first 90 lb	$143.30 + $0.92/lb

 

From the prices mentioned above, it is evident that the more products you sell on your website, the cheaper it will be for you to use the Fulfillment by Amazon solution. This is especially true if your website is selling more products than your channel on Amazon.

For example, if you are selling a non-clothing item on Amazon that weighs than 1 pound, then the fulfillment fee charged by Amazon will be $2.41 per unit. However, if you are selling the same item on Amazon, then the fulfillment fee for standard shipping will be $2.20 per unit, provided the order is for more than 5 units. Needless to mention, you need to undertake thorough calculations in order to decide which platform works out to be more feasible for you.

 

Amazon FBA Monthly Storage Price

In order to ensure that you fulfill the orders of your clients quickly, you can choose to store your products in the fulfillment centers of Amazon. This is particularly helpful if your products are popular among your clients and they run out very quickly. The following tables illustrate storage fees on a monthly basis and long-term basis.

Storage Month	Standard-Size	Oversize
January – September	$0.69 per cubic foot	$0.48 per cubic foot
October – December	$2.40 per cubic foot	$1.20 per cubic foot

Monthly Storage Cost

INVENTORY ASSESSMENT DATE	ITEMS IN FULFILLMENT CENTERS 181 TO 365 DAYS	ITEMS IN FULFILLMENT CENTERS 365 DAYS OR MORE
Semi-annual (February 15 and August 15)	$11.25 per cubic foot	$22.50 per cubic foot

Long-Term Storage Fees

Inventory Assesment Date	Items In Fulfillment Centers 181 To 365 Days	Items In Fulfillment Centers 365 Days or More
Monthly (15th of every month)	$3.45 per cubic foot	$6.90 per cubic foot

Minimum Long-Term Storage Fees

Inventory Assessment Date	Items in Fulfillment Centers 365 Days Or More
Monthly (15th of every month)	$0.50 per unit

 

Don’t Forget!

When you are selling your products on Amazon, you must remember the seller fees that Amazon charges. This is also known as a referral fee and is levied on each item sold on Amazon. For example, if you are selling baby products on Amazon, then the company will levy a referral fee on your product, which will be 15% of the selling price. An entire list of referral fee for each product category can be found on the official website. However, if you are selling your products on external channels, then you do not have to worry about this seller fee.

 

Other Charges To Consider Before You Start

If you decide to opt for Fulfillment by Amazon, then you need to consider some of the charges mentioned below, in addition to the ones mentioned above. You need to look out for these charges or otherwise, they may take a bite out of your profits!

• Monthly Selling Fees – This is the fees that you pay Amazon on a monthly basis for choosing its platform. You can think of it like rent that you are paying for using Amazon’s site to sell your products.
• Referral Fees and Variable Closing Fees – This is like the commission that you pay Amazon on every product that you sell on its site.
• Returns Processing Fees – While returns processing fee is free for many products, you need to keep an eye out for those product categories that do not fall under the purview of this. Therefore, Amazon may charge you a fee to process your returns. Furthermore, if applicable, it may also charge a repackaging fee, provided your product needs repackaging for resale.
• Stock Removal Fees – If you want to dispose your unsold stock from Amazon’s inventory, then Amazon will levy a stock removal fees. This fee is also charged if you ask Amazon to send your products back to you.
• Inventory Placement Service – You can sign up for FBA Inventory Placement Service to send all of your eligible inventory to a single receive center or fulfillment center, instead of having Amazon divide your shipment into multiple shipments with each going to a different center. However, to avail this service, you will have to pay a fee.
• Amazon FBA Export Fees – Fulfillment by Amazon also allows you to export your products to multiple countries, provided this export service is available in your country. As a result, an export fee may be levied on your products depending on the channel you are selling it from. More information on this can be found by logging on to your Amazon Seller Central dashboard.

 

Amazon FBA Overview For Amazon Products Vs. Multi-Channel Fulfillment Products

Before we conclude, let us take a quick look at how you will fare when you sell your products on Amazon and your personal website and use FBA to fulfill your orders. In our example, we will consider the following parameters:

Item	Dining Item – A Porcelain Mug
Quantity Sold	1,Product sold in May 2018
Weight and Size	Standard-Size, Large, less than 2 pounds
Selling Price	$20
Wholesale Price	$6

Now, let us take a look at our numbers for the two categories – Amazon and MCF, both of which have availed the Fulfillment by Amazon service.

Total Fees: $8.9-$8.14

 

Amz MCF Fees

Fees Incurred	Amazon	MCF
Fulfillment Fee	$4.71	$5.15
Shipping Fee for sending to Fulfillment Centers	$1.50	$1.50
Referral Fee (10%, for example)	$2	Not Applicable
Inventory Storage Fee (1 month)	$0.69	$0.69

 

The profit earned from the respective channels has been explained below.

Cost Price: $6-$6.5

 

FBA Profit Calculation Based on Selling Price

Selling Price	$20	$20
Fees Incurred	$8.9	$8.14
Profit	$5.1	$5.16

In the above example, it can be seen that selling products on external channels will result in a greater profit than selling on Amazon, owing to the absence of a referral fee. However, the FBA fees for Multi-Channel Fulfillment products are considerably higher than for the products sold on Amazon. Therefore, while performing your calculations, you need to take these factors into account.

 

Conclusion

Fulfillment by Amazon is an excellent program that can help you tremendously in boosting your sales and expanding your market share. The fulfillment rates are highly competitive and in many instances, they work out to be cheaper than going to a third-party logistics partner. Whether you are selling your products on Amazon or on a different channel, FBA is the way to go. However, to ensure that your profits are not impacted, you should run your calculations carefully and re-check them. In addition to this, you can also get in touch with Amazon’s representatives to help you understand these prices better.

 

Tell us what you are worried about shipping from China to Amazon FBA warehouse. We know which is the best shipping service route, best suited to your budget and requirements.

   • Save time and money.

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