Amazon FBA fees: how much, when and for what to pay Amazon
We’ve been creating business plans and counting profitability for many times, that’s why we’re telling how much, when and for what to pay to the Big Brother.
*In the article we’re considering Amazon fees for FBA model.
They are charged right after you sell the product. This category has two fee types:
Referral fee Its size depends on the category but mostly it’s 15% of the cost of the order. Check out the referral fee rates here.
Fulfillment fee (includes order processing fee, receiving, packing, delivering the product to the buyer). Its size depends on the product size and the period of the year. Amazon has 8 size categories, depending on the product dimensions (length, width, height, weight) it gets into one of them. This way the sum you pay for each sold product is defined. The rates change at different times of the year as well. In the pre-holiday months (October-December) they are lower.
Payment for Professional selling plan — $39,99
*if you have an Individual selling plan, the fee structure differs: Amazon charges $0,99 from each sold item buy you don’t pay a monthly fee.
FBA monthly storage fee — depends on the product size, its number (in cubic feet) and a month of the year.
Long term storage fee There are 2 rates: if the product has been stored on Amazon warehouse for more than 6 months, or 1 year. The sum depends on the size, number and terms of storage of the product.
Inventory Placement Service fees (payment for the distribution of products between different Amazon warehouses). It’s charged after the creation of the shipment, if the product is sent to only one Amazon warehouse and the company distributes it between different places (yes, the platform defines to which warehouses to send the goods and there’s no way to change that).
Removal fee There are three ways to get rid of your inventory: destroy the product, send it to any address from Amazon warehouse, or liquidate. If you prove the destroying of the product (removal order) you pay for each item.
Returns processing fee (payment for the organization of product returns). It’s applied if the buyer returns the product from a category, for which Amazon offers a free delivery back to the warehouse (categories Apparel, Watches, Jewelry, Shoes, Handbags & Sunglasses, Luggage).
Unplanned Prep Services They are charged if the item is packed incorrectly or the barcodes are applied in a wrong way.
FBA Label Service Fee Each item sent to Amazon warehouse should have a barcode, generated in Seller Central. If you don’t want or can’t apply the barcodes yourself, Amazon can do that instead just for $0,20 per item.
FBA Prep Service Fees If you want Amazon to pack your product according to the requirements, you should pay a certain fee for each product item.
To calculate the revenue per item, pay attention to the first two types of fees — you won’t avoid them for sure. Optional fees are charged only in certain cases but it’s always better to be warned and armed.