* Intended to be used and must be used for informational purposes only. Fees may be changed by Amazon at any time.
Rely on Amazon to take care of everything from storing your product to shipping. Amazon takes care of all the logistics for you – at a price of course. Here’s an explanation of all FBA Fees. FBA stands for fulfillment by Amazon.
Advantages to Amazon FBA
- Competitive against people selling same product as you are
- Saves on shipping
- Focus on customer service
Amazon FBA Order Fulfillment Fees
Order Handling Fee – cost per order. About $1 per item or order. If 1 customer orders 5 items, it’s still a 1 time charge of $1
Pick and pack fee - $1.06 as of 8/11/2016. It’s been steadily going up 2 cents each year. Applies to every item in an order
Weight Handling Fee – Varies greatly based on your product weight and number of products ordered
Amazon FBA Fulfillment Fee Schedule
Most items fit into the small standard size category. Small size has specific dimensions that only count as the interior of the box. Which means you could be paying large size fees for a small size item if it is packaged too large.
Large Standard Size is $1.95+0.39/lb. above the first 2 lb. as of 8/11/2016
10 Miscellaneous Amazon FBA Fees
- Monthly inventory storage fees – Varies and has gone up every year for last several years. New this year: separate storage fee for holiday months (October-December). Measured by cubic volume averaged over a month.
Just in time inventory placement – turn around time of 1 month or less
TIP: Don’t send in a ton of pallets without knowing your sell through rate. Start smaller with just 1 or 2 pallets then work your way up to 20-30 pallets.
Depends on how large your items are. Small items are significantly less cost to store.
Advantage: Frees up space in your warehouse
- Long Term Storage Fees – If your inventory sits too long, huge fees. you get remove inventory by discounting it or removing it. Can be economical if it will sell but longer than 6 months you get huge fees. Amazon cut off dates are in August and February.
- Removal order fees – 50 cents to remove inventory. Sometimes Amazon gives promotions to excess inventory items. If items are damaged, you can remove inventory for inspection.
- Returns processing fees – From customer back to Amazon warehouse. You can get refunded less than you initially paid for. Customers receive a full refund. Reimbursed returns are when the item doesn’t actually get back to you but Amazon reimburses you. Held to Amazon’s standard return policy to partake in FBA benefits.
- Unplanned service fees – any miscellaneous work that needs to be done – fail to put stickers on or put them on correctly for example.
- FBA Label Service – 20 cents per unit to do labels for you. Available for most products.
- FBA Prep Service – Smaller fee for prepping product for shipping for you.
- Inventory Placement Service – May be becoming obsolete. If you send in 100 items of a product, Amazon will tell you to split up the inventory and send to different warehouse states around the U.S. Inventory placement service – send all into 1 place and Amazon will send to separate warehouses for you.
- Multi-Channel Fulfillment – can have Amazon fulfill all your orders for channels outside of Amazon like eBay or your own website. They will ship out to the customer for you but without the full customer service. The advantage: more convenient, more economical, less fees. Used to have non-Amazon boxes sent out but now the only option is Amazon boxes.
- Zero Fee Fulfillments – Product qualifies and is over $300. Amazon will not charge you fees.
Inbound Shipping Discounts
- Amazon partnered carriers offer deeply discounted rates for shipping your inventory to Amazon
- You can ship individual boxes by small parcel delivery or pallets by the truckload
- Shipping into amazon 80% off ups retail rates for bulk shipping to Amazon Warehouse
TIP: Sometimes Amazon loses inventory in warehouses.
TIP: Be customer centric. A few negative reviews on your seller account can be detrimental. Don’t get upset with returns. For example, you can refund a customer’s money and let them keep the product and look at it as an opportunity to ask for a 5 star review in return. An added benefit, is they can tell all of their friends and refer you more customers.