Amazon FBA Fees
|What Are FBA Fees?|
|Fulfillment by Amazon Fees|
|Illustrative Example of FBA Amazon Fees|
Amazon FBA wagon continually makes e-commerce around the world easy and achievable. It enables retailers to store up their products in Amazon warehouses. Sellers only have to ship products to any warehouse and take care of Amazon FBA fees.
A question that can crop up in a retailer’s mind is what are Amazon FBA costs. But before you learn what these fees are, you should appreciate that these fees are justifiable. Amazon not only handles the storage of products but also packing, shipping, and offering customer service.
What Are FBA Fees?
Here are the major categories of FBA Amazon fees:
- Fulfillment fee: This is the cost to locate items on the Amazon shelves, pack, and ship, provide customer service and handle returns
- Storage fee: Amazon owns a vast number of warehouses to accommodate the increasing storage demands. To ensure sellers don’t misuse their storage, Amazon base their charges on daily average volume occupied
- Monthly subscription: To become a professional seller, Amazon requires you pay a monthly fee which currently stands at $39.99. Paying this amount excludes you from paying individual seller fee
- Referral fee: This is a percentage of your gross sales for every product you sell on Amazon. It’s 15% basically but can be less depending on the category of your product
- Shipping fee: FBA Amazon fees include the product’s shipping cost to the customer. It’s usually cheaper than for other agents as Amazon negotiates for shipping discounts
- Individual seller fees: If you are not a professional seller, you pay a fee of $0.99 on every product you sell
- Stock removal fees: This is the fee charged to have your item disposed of or removed from Amazon. It depends on the size of your product with the standard size charged $0.50
- Variable closing fee: Sellers dealing with media products such as books pay a variable closing fee which is normally a flat rate
- Labeling Fees: If your product does not have the bar code label as required by Amazon, you have to part with $0.20 per unit
Fulfillment by Amazon Fees
These are fees Amazon charges for picking, packing and shipping your products. They include customer service and may consist of product returns. The charges for standard and oversize are as per the diagram:
Illustrative Example of FBA Amazon Fees
Baby Cot Small Oversize
- Sales Price: $194.99
- Referral Fee: $29.25
- FBA Fees: $10.79
- Net Sales: $154.95
Still not convinced to sell via FBA Amazon? Here are the advantages of using Amazon rather than other e-commerce platforms.
- Amazon simplifies your e-commerce trade by storing your consignment, packing, and shipping on your behalf. Additionally, it handles your customers to ensure there is satisfaction
- The competition on Amazon is less while the market in large compared to other e-commerce platforms like E-bay. The latest analytics indicate that Amazon’s monthly visits stand at 2.73 billion . The big market acquisition owes to referrals. This shows there is customer satisfaction
- Amazon gives you the freedom to create and handle your own listing. Through the private label, you can create your own product. So you don’t necessarily have to rely on the branded product listings on Amazon. This essentially means you can create your brand
- You can estimate your profit and sales beforehand. Business is about the viability and you determine it through sales projections. Tools like Amazon revenue estimator enables you to gauge your return on investment. Thanks to the knowledge of applicable FBA fees
- With the above benefits, FBA offers scalability. You can grow your business to a multi-million empire
It’s evident that Amazon FBA Fees are determinable and any seller aspiring to use the FBA Amazon platform needs not to shy away. Anyone from beginners to veterans can benefit from this incredible e-commerce opportunity.