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Amazon FBA Fees

13 April 20

Many of the professional sellers on Amazon make use of Amazon FBA because they understand the benefits. Let me paint a scenario for you, shall we? Seller A has been selling a particular product within his state/country for almost seven months. 

Let’s assume the seller is male. He has now decided to go on a large scale due to the number of sales he has made. He added more products to its listing as well as the option of shipping across the globe. That’s more responsibilities to handle, right? He has more items to sell so he must expect more orders from different customers across the globe. How does he manage this? 

If he decides to employ more workers to help with the inventory, the gain might not be enough after clearing all the payments for shipping and distributions. However, Amazon offers a service that can help Seller A to cater to all his inventory as well as the packaging and distribution across the globe. 

Try comparing the costs of doing it yourself and the cost of making use of Amazon FBA, you will realize that the latter is better, effortless, time-saving and lucrative. In this article, we will learn about Amazon FBA, its benefits, and fees breakdown.

What is Amazon FBA?

When registering as a seller on Amazon, you are faced with two options- FBM and FBA. FBM is short for Fulfilment by Merchant. This means that you have decided to handle all your orders yourself. 

On the other hand, we have FBA which stands for Fulfillment by Amazon. This one means that you have decided to employ the services of Amazon to handle and cater to all your orders at a particular price. After a lot of research, we found out that one of the most incredible and efficient means of making sales on Amazon is by using Amazon FBA. 

Amazon FBA is a program developed by Amazon to assist sellers on Amazon with picking, packaging, storage, and distribution of products. This was done with the mind to help Amazon sellers improve on their sales. 

Benefits of Amazon FBA

Before diving into the main agenda of this article, I figured that we should discuss the benefits of Amazon FBA. This will help us understand why every Amazon seller should make use of these services. 

  • Customers will trust you more. 
  • The shipping rate is subsidized 
  • Orders are handled quickly and properly
  • The distribution of products on multiple channels is made easier with Amazon FBA. 
  • Amazon is rated one of the best services when it comes to shipping and distribution of products. You can be assured that your products are in the right hands.

Total Fees Breakdown of FBA

Image result for amazon FBA fee

Generally as mentioned earlier, before registering as an Amazon seller, you have to decide between two options- FBA or FBM. If you have chosen FBA, then you have no problem paying for some certain things when it comes with handling and catering for your goods. Once you have registered as an FBA seller, several goodies come with the fees which includes:

  • Shipping of goods both locally and internationally 
  • Distribution of goods 
  • Labelling and packaging of products

Since you have paid for the FBA fees, it covers these three activities mentioned above. However, these fees are charged based on size and weight of the products.

Let’s take a look at the prices per size:

Apart from these fees mentioned above, Amazon also charges sellers for storage fees. Since you are going to be using Amazon’s distribution centers for storage of your goods before distribution, Amazon will charge you some fees. These storage fees are divided into two- Monthly and Long Term. 

Monthly Storage FBA Fees 

This payment is paid monthly to Amazon for helping the sellers keep their products for a month. If by the end of a month, your products remain in Amazon’s fulfillment center then you would be charged for monthly storage fees. 

For Standard Size between the first nine months (January to September), amazon charges $0.69 per cubic foot. For the last three months (October to December), they charge $2.40 per cubic foot. This is mostly because the last three months are usually the busiest time of the year.

Long term FBA Fees 

Amazon refers to your goods as long term when it has stayed in their store for about 180 days or more. After Amazon finds out your goods have been sitting in their center for over 6 months or more, you will be charged with a long term FBA fee. 

Conclusion 

Amazon FBA is an incredible option for Amazon sellers when it comes to handling your orders and distributing your products. If you are thinking of gaining more grounds and improving your sales on Amazon, FBA is your best bet.


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