Amazon FBA Fees & Costs

Amazon FBA business has some initial costs that every seller should consider before starting to get successful. The first one is Sale-Related Fees.  The net one is related to the fees you should pay for your Seller Account. Shipping cost is essential in this business. Last but not least is Amazon FBA Fees. In this article, we want to discuss the different prices. So, if you’re going to have a successful business, don’t miss this article.

 

What is Amazon FBA (Fulfillment by Amazon)?

Amazon FBA makes selling on Amazon significantly easier for the sellers. The seller only lists the product on Amazon and sends them its warehouses. Amazon does the rest.

When an order is placed, Amazon picks and packs the item and ships it to the customer. Amazon is responsible for the return, refund, and customer service. But using from one of the largest marketplaces in the world and its unique service isn’t free.

 

What Are Amazon FBA Fees?

The fee is deducted from Amazon payouts before receiving to cover servicing your business. Amazon doesn’t offer a free service. It depends on the benefit you get from it; you need to pay for it. But there are two general types of fees:

–  Fees all Amazon sellers must pay

–  Fees that only FBA sellers pay

The Referral fee has not changed over the few years, but FBA Fees have increased in the last update in June 2021. We will break down both expenses in this article.

 

Amazon Seller Account Fees

All the sellers don’t want to be professional. Sometimes a seller is attracted to this platform to experience it and doesn’t plan to improve it. That’s why Amazon suggests two different plans based on your condition and expectation.

Amazon provides two plans for the sellers. One is for newbies and who generally the sale of their product is less than 40 items per month. This plan is called individual. It is the best choice for beginners if you don’t need the volume reports and the inventory tools. The other plan is the professional plan suitable for those who sell more than 40 items monthly.

 

The individual plan fits the beginners who don’t dream about a big business. If you expect a selling volume of more than 40 items per month, it’s better to subscribe to the Professional plan because you must pay $0.99 for each sale (41*0.99 = 40.59).

But in the Professional plan, the subscription fee is $39.99, and you can sell as many items as you want. That’s why if you sell more than 40 items per month, this plan is more efficient.

	Plan Type
Seller account features	Professional	Individual
$39.99 monthly subscription fee	Yes	No
$0.99 per-item fee when an item sells	No	Yes
Create new product pages in the Amazon catalog	Yes	Yes
Manage inventory using feeds, spreadsheets, and reports	Yes	No
Manage orders using order reports and order-related feeds	Yes	No
Use Amazon Marketplace Web Service to upload feeds, receive reports, and perform other API functions	Yes	No
Amazon-set shipping rates for all products	No	Yes
Seller-set shipping rates for non-Media products	Yes	No
Promotions, gift services, and other special listing features	Yes	No
Eligibility for listing placement in the Featured Offer	Yes	No
Utilize Amazon Business features to create pricing and offers unique to business customers.	Yes	No
Ability to calculate U.S. sales and use taxes on your orders	Yes	Yes
Access user permissions/grant access rights to other users	Yes	No
Ability to claim certifications that are recognized by Amazon	Yes	No

If you are interested in more details, head to the Amazon Individual Plan vs. Professional Plan.

 

Amazon FBA Shipping Costs

If you don’t notice to shipping costs you might lose all of your profit. Amazon pays a shipping credit to cover your costs if you ship the orders yourself. But usually, this credit is less than what you actually pay.

This cost is different based on your item dimensions, weight and category. Use this chart to estimate your costs.

Category	Standard*	Expedited*	Two Day**
Books	$3.99	$6.99	$14.95
Music	$3.99	$6.19	$14.95
Videos	$3.99	$6.19	$14.95
DVDs	$3.99	$6.19	$14.95
Video Games	$3.99	$6.99	Not available
Software & Computer Games	$3.99	$6.99	Not available
All other categories	$4.49 + $0.50/lb.***	$6.49 + $0.99/lb.***	Not available

* Includes APO, FPO, and U.S. Protectorate addresses.

** Two-Day Shipping is available to eligible sellers only.

*** Refers to the weight of the item, excluding the seller’s packaging.

 

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Read More: What is Wholesale Distribution?

 

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Sale Related Fees

It is a fee that Amazon takes based on your sales. This fee varies from one category to another and is a percentage of your item price. The Sale Related Fees have three different types:

1. Referral fees

2. Minimum Referral Fees

3. Closing Fees

 

Referral Fees

Both Individual and Professional accounts pay a referral fee for every item that sells on Amazon. It is usually 15%, but the percentages vary in different categories. For example, it is 8% in the personal computer, but in Amazon Device Accessories, it is 45% of your total sale price. If a personal computer costs $1000, Amazon takes $80 as the Referral Fee. ($1000 * 0.08 = $80)

Minimum Referral Fees

Some categories have a per-item minimum referral fee. For example, you sell a pair of sports socks for $1. the referral fee percentage is 17% so 1*0.17 = $0.17. but the minimum referral fee for this item is $0.3. so, Amazon takes the greater means of $0.3.

Closing Fees

Amazon closing fee is a fixed charge of $1.8 per media item sold. Media item includes the following categories:

• Book
• Computer Game
• Computer software
• DVD & Blu Ray
• Music
• Video
• Video Games
• Video Game Consoles

 

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Read More: How to Increase Sales in Wholesale Distribution?

 

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Fulfillment by Amazon Fees

This is the fee FBA sellers must pay in addition to Amazon selling fees for the extra service they receive.  This service includes storing, picking, packing, and shipping the orders. Sometimes your items are not sold for a long time. They are oversize or overweight. Damaged products also need to be disposed of in the inventory. All of the above can increase your FBA costs. You should notice that Hazardous Materials (HAZMAT) Amazon has strict policies. Some items cannot be stored in Amazon Warehouses, and another group has a higher shipping cost.

Amazon usually updates the FBA selling fees every year. Apparel and non-Apparel products have different cost charts. You can see the details in the following table:

 

 US Amazon FBA fulfilment fees (non-apparel)

Size tier	Shipping weight	Previous fulfilment fee per unit	NEW fulfilment fee per unit
Small Standard	6oz or less	$2.50	$2.70
	6-12 oz	$2.63	$2.84
	12-16 oz	$4.90	$3.32
Large Standard	6 oz or less	$3.31	$3.47
	6-12 oz	$3.48	$3.64
	12-16 oz	$4.90	$4.25
	1-1.75 lb	$4.90	$4.95
	1.75-2 lb	$5.42	$4.95
	2-2.75 lb	$5.42	$5.68
	2.75-3 lb	$5.80	$5.68
	3-3.75 lb	$5.80	$5.68
	3.75-4 lb	$6.18	$5.98
	4-4.75 lb	$6.18	$6.28
	4.75-5 lb	$6.56	$6.28
	5-5.75 lb	$6.56	$6.58
	5.75-6 lb	$6.94	$6.58
	6-6.75 lb	$6.94	$6.88
	6.75-7 lb	$7.32	$6.88
Small Oversize	70 lb or less	$8.26 + 38c/lb above the first 2 lb	$8.66 + 38c above the first lb
Medium Oversize	150 lb or less	$11.37 + 39c/lb above the first 2 lb	$11.37 + 39c above the first lb
Large Oversize	150 lb or less	$75.78 + 79c/lb above the first 90 lb	$76.57 + 79c above the first 90 lb
Special Oversize	Over 150 lb	$137.32 + 91c/lb above the first 90 lb	$138.11 + 79c above the first 90 lb

 

US Amazon FBA fulfilment fees (apparel)

Size tier	Shipping weight	Previous fulfilment fee per unit	NEW fulfilment fee per unit
Small Standard	6oz or less	$2.92	$3.00
	6-12 oz	$3.11	$3.14
	12-16 oz	$5.35	$3.62
Large Standard	6 oz or less	$3.70	$3.87
	6-12 oz	$3.81	$4.04
	12-16 oz	$5.35	$4.65
	1-1.75 lb	$5.35	$5.35
	1.75-2 lb	$5.95	$5.35
	2-2.75 lb	$5.95	$6.08
	2.75-3 lb	$6.33	$6.08
	3-3.75 lb	$6.33	$6.38
	3.75-4 lb	$6.71	$6.38
	4-4.75 lb	$6.71	$6.68
	4.75-5 lb	$7.09	$6.68
	5-5.75 lb	$7.09	$6.98
	5.75-6 lb	$7.47	$6.98
	6-6.75 lb	$7.47	$7.28
	6.75-7 lb	$7.85	$7.28

 

Final Thought

Selling on Amazon has a cost, and considering them is vital for your business. To have a successful business and prevent unexpected expenses, you need to know the necessary fees you should pay Amazon. This article talked about the different Amazon costs to make an informed decision before starting your business.

source: https://oabeans.com/amazon-fba-fees/