Lucrative selling on Amazon has associated Amazon FBA fees (Fulfilment by Amazon). Learn the various costs involved in this article.
Selling your product on Amazon can be very lucrative indeed.
However - before you dive headfirst into the Amazon online selling platform, it's very wise to check exactly how much Amazon are going to charge you in terms of their FBA (Fulfilment by Amazon) fees for the pleasure of selling on their Marketplace.
To break it down, let’s take a look at the fees associated with selling on Amazon, when you’ve opted to go down the FBA route of marketing your product on this online platform.
Amazon’s FBA referral fee relates to the “commission” credited to Amazon for every product sold on their online marketplace. This fee is usually a flat fee percentage of the product cost, typically 15% or less.
These referral fees don’t need to be paid before you’ve sold your product. These fees are withdrawn from your account with Amazon post sales transaction.
You can find a full list of Amazon’s referral fees on their website , as the percentage fee varies, dependent on the product category your item falls into.
FBA Sellers Fees (as the name suggests) are the fees you’ll only pay if you are an FBA seller.
By signing up to Amazon’s FBA service, you are handing over the process of shipping, processing and packaging to Amazon.
The costs you pay to Amazon’s Fulfilment Centres is indicated by the weight, and the overall size of your item.
Below is a guide to these fees, and more information can be found on Amazon’s website .
As part of the FBA service, Amazon store your products for you. And depending on the size and weight of your items, and how long you require the items to be stored for, are factors involved in these particular fees.
You can choose between monthly fees, and long-term storage fees.
At the end of the month, you’ll be charged the monthly storage fee – claimed from your Amazon account balance.
Depending on whether your products are standard or oversized.
Products which are classed as standard are items that weigh under than 20 pounds, or have dimensions less than 18x14x8 inches.
Products which are classed as oversized are items that are over and above the standard criteria above.
You can use the following images as a guide on monthly FBA storage costs:
These fees come into play when Amazon stores your items for 180 days or more. Currently, these fees are charged at $6.90 per cubic foot of used storage.
For periods of longer than 365 days, there are further charges incurred.
It’s worth bearing in mind that during peak periods for Amazon, these fees may increase, in a bid to encourage sellers to reduce their products that aren’t selling well.
If the items you are selling are qualified for Free Delivery via the Amazon Prime service, an extra cost is incurred for FBA returns. You don’t have to bear this in mind if your products are not eligible for free returns.
You don’t want to get on the wrong side of Amazon, as they are very well-known for extremely stringent selling rules and regulations!
Amazon is known for very strict seller requirements, and they will impose a penalty on sellers for not abiding by the regulations.
For one example, a fee would be charged by Amazon if they need to re-label the product, in the instance of the barcode label specs not being adhered to. This would also come into effect if the packaging and preparation rules weren’t followed.
This section of fees refer to costs payable by both FBA and FBM sellers on Amazon. Some products are exempt from the aforementioned costs, and are just based on a flat fee.
These products include:
If you are a FBA seller who enjoys selling thousands of ASINs, you’ll be liable for a monthly cost of $0.005 per ASIN. This is only a concern if you have over 100,000 items listed on Amazon’s Marketplace.
Hopefully this article has given you some thought regarding the fees relating to FBA selling on Amazon, so you are fully informed, and not caught out in your selling business.
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