After reading about all the benefits that FBA has to offer and making sure that it suits your business model, you might be convinced that selling through FBA is just what your business needs. While you may be right, there’s still one more detail that you need to consider before completely making up your mind: How much will it cost you?
The amount of FBA fees that you end up paying depends on factors like the products you sell and the sales channels you sell on. In addition, there are 7 different types of FBA fees based on the services you use. In this guide, we will be walking you through each of the fee types.
What factors determine how much you spend on FBA?
The amount of FBA fees that you pay generally depends on three main factors: the size of your products, the weight of your products, and the sales channels that you sell your products on (whether it’s just Amazon, or other platforms as well).
Based on size and weight, Amazon classifies products as either standard-sized or oversized. All products that weigh under 20 pounds after they have been packed, and have dimensions no more than 18” x 14” x 8”, are categorized as standard-sized. Products that weigh more than 20 pounds after being packed or with dimensions exceeding 18” x 14” x 8” are categorized as oversized.
FBA also gives sellers the option to make use of Amazon fulfillment services while selling on a different sales channel—this is called Multi-Channel Fulfillment or MCF. With MCF, sellers can ship their products to an Amazon fulfillment center and Amazon will take care of all their fulfillment processes. MCF can be used by all sellers meaning those who sell on Amazon and those who don’t. If you’re considering MCF, it’s important to note that the fees for FBA with MCF are higher compared to the fees when only selling on Amazon.
What are the different types of FBA fees?
Besides the dimensions of your products and the sales channels you sell on, the types of FBA services you use also affect your fees. Let’s walk through the different types of FBA fees. Some of these fees are mandatory for all FBA sellers, while others are only applicable in certain situations.
Fulfillment fees are the fees that you need to pay FBA for having them fulfill your order. They include all the charges necessary to pick, pack, and ship products, as well as post-sales charges for functions like returns, refunds, and customer service. Fulfillment fees are mandatory for everyone who signs up for FBA and uses their services.
This is the cost to store your products in Amazon’s fulfillment centers. Storage fees are calculated based on how many cubic feet your products take up. Like fulfillment fees, storage fees are required for all sellers who sell on Amazon and use FBA’s services.
Selling fees are the fees that you pay in order to sell via FBA. There are two selling plans: the individual plan, which charges $1 for every product that you sell, and the professional plan, which charges $40 per month, regardless of the number of items sold in the month.
For every item that a seller sells on Amazon, they are required to pay a referral fee. These fees are like a commission that sellers pay Amazon to be allowed to sell there.
Removal order fees
Removal order fees need to be paid every time a seller removes one of their items from an Amazon fulfillment center. These fees are calculated based on the size and weight of the product being removed.
Returns processing fees
These fees apply when a customer returns a product that is eligible for free return shipping and was originally sold on Amazon. The returns processing fees are equal to the fulfillment fees for that product.
Unplanned service fees
If a seller decides to store their products in a fulfillment center, they are required to pack, label, and barcode their products. If they haven’t, then Amazon will take care of these functions for the seller and charge them a fee for it. These are called unplanned service fees.
Before signing up for FBA, it’s important that you take the time to consider what goes into your FBA fees and what are the types. Your fees broadly depend on three factors, your products’ dimensions, weight, and the sales channels you use to sell your products on. There are also 7 types of fees from which a few are compulsory and the rest are applicable only for certain situations. Take a look at the type of products you sell to come up with a rough estimate of how much you would have to pay. For more on FBA, check out our other guides on the Basics of FBA and How to start selling on FBA.