Business and Finance

What You Need To Know About Amazon FBA Fees

Here, we will examine how FBA works and the associated Amazon FBA Fees.

Before we get started, remember that this Amazon FBA pricing or Amazon FBA fees is when it comes to Amazon U.S, so these prices may vary.

Amazon FBA Fees Explained

To understand how Fulfillment by Amazon (FBA) works, let us consider the example of John and Chris who recently started their business on Amazon.

When a customer places an order for one of John’s products, John is tasked with down to packing it carefully and shipping it to the customer.

Furthermore, he is also responsible for storing the products and providing customer support in order that his customers are happy with his products.

While this may not seem that bad for a single product, it definitely becomes a Herculean task for John as his business begins to grow. Furthermore, considering that John is probably going to do everything by himself, there may be room for errors.

With regards to Chris, however, he has delegated all those duties to Amazon by choosing their Amazon FBA solution. All Chris has to do now is ship his products to Amazon and let it keep up with the rest. Amazon not only stores its products in its highly secure fulfillment centers, but in addition, they also pack, ship, and provide customer service for these goods. By choosing Amazon FBA, Chris has effectively allowed a team of highly-trained professionals to address picking, storing, packing, and shipping his products.

Understanding all Fulfillment By Amazon fee types

FBA fees are divided into two main categories:

  1. Fulfillment Fees
  2. Monthly inventory storage fees

Fulfillment Fees

This fee is charged per unit and includes :

  • Packing
  • Shipping and handling
  • Customer service
  • Product returns

This too is divided into two categories, each with four subcategories:

Standard-size:

  1. Small (1 lb. or less) – $2.41
  2. Large (1 lb. or less) – $3.19
  3. Large (1 to 2 lb.) – $4.71
  4. Large (over 2 lb.) – $4.71, add $0.38 for every pound above 2 lb.

Oversized :

  1. Small oversized (1 lb. or less) – $8.13$137.32, add $0.38 for every pound above 2 lb.
  2. Medium oversized (1 lb. or less) – $9.44$137.32, add $0.38 for every pound above 2 lb.
  3. Large oversized (1 to 2 lb.) – $73.18$137.32, add $0.79 for every pound above 90 lb.
  4. Special oversized (over 2 lb.) – $137.32, add $0.91 for every pound above 90 lb.

 

Monthly inventory storage fees

Charged per cubic foot for all units being stored at an Amazon fulfillment center based on the month and the volume of your product moving through the facility. This too is divided into two categories each with two subcategories:

Standard-size:

  • January – September – $ 0.64 per cubic foot
  • October – December – $2.35 per cubic foot

Oversized:

  • January – September – $ 0.43 per cubic foot
  • October – December – $1.15 per cubic foot
amazon fba fees table

Understand Amazon FBA Pricing

Please note that the aforementioned excellent services come at a price known as Amazon FBA Fee. These prices depend on three primary factors:

  • The weight of the product – Calculate the volumetric weight of your amazon product
  • The size of the product also referred to as dimensions
  • The type of product – the category it belongs to
  • Channels on which the products are sold – Amazon, or an external site

If you are selling a product on Amazon through Fulfillment By Amazon, then you will mainly be dealing with two prices:

  • Amazon Fulfillment Fees – These are the fees that you pay Amazon for having it fulfill your order. This covers all the processes that go into fulfilling an order – picking, packing, shipping, and providing customer service, and if applicable, return too. It is also worth mentioning that these fees are calculated per unit.
  • Monthly Inventory Storage Fees – These costs are incurred if you decide to store your products in Amazon’s warehouses, also known as fulfillment centers. This depends on the space occupied by the products and is calculated per cubic foot.

Another thing that you need to consider is the size and weight of your products. As mentioned earlier, Amazon FBA pricing is based on how much your product weighs and its size. For the sake of simplification, Amazon has split its product size into two categories:

  • Standard Size – For a product to fall under the standard-size item category, it should weigh less than 20 pounds when fully packed. Furthermore, its dimensions must not be more than
    18” x 14
    ” x 8”.
  • Oversize – Any product that exceeds these dimensions and the weight is considered to be oversized. For example, if a product weighs more than 20 pounds and exceeds 18 inches on its longest side, it will fall under the oversize category.

There are subdivisions within these sizes, and they have been highlighted in the table below.

PRODUCT
SIZE
CATEGORY
WEIGHT
(IN POUNDS)
LONGEST
SIDE
(INCHES)
MEDIAN
SIDE
(INCHES)
SHORTEST
SIDE
(INCHES)
LENGTH +
GIRTH
(INCHES)
Small
standard-size
Equal to
or
Less than 12 lb.
15″ 12″ 0.75″ N/A
Large
standard-size
Equal to
or
Less than 20 lb.
18″ 14″ 8″ N/A
Small
oversize
Equal to
or
Less than 70 lb.
60″ 30″ N/A 130″
Medium
oversize
Equal to
or
Less than 150 lb.
108″ N/A N/A 130″
Large
oversize
Equal to
or
Less than 150 lb.
108″ N/A N/A 165″
Special
oversize
Over 150 lb. Over
108″
N/A N/A Over
165″

NEW AMAZON FBA FEES: HOW MUCH DOES AMAZON FBA COST? – PRICING BREAKDOWN EXPLAINED

This will give you an understanding of how you can go about estimating the fees and all the additional costs that are required to jump onto the Amazon FBA program!

Amazon FBA Price Chart

Now that we have understood how Amazon FBA prices work, we will examine these prices across various size categories in the sections below. Before we proceed, allow us to attract your attention to the part where we spoke about the channels through which the products are sold. You should remember that Amazon FBA fees for products sold on Amazon aren’t the same as the fees for the products that are sold on external sites. Therefore, i will be exploring these FBA fees for the two categories separately. To Calculate FBA Fees Check out this Awesome Amazon Fba Calculator Extension

Amazon FBA Fees For Products Sold on Amazon

If you sell your products on Amazon, then the likelihood is you have already heard about Fulfillment by Amazon. This package covers pretty much everything, ranging from picking, packing, and shipping the goods to your customers to helping your clients deal with questions about shipping, payments, returns, etc. As explained earlier, these prices depend on the dimensions of the products that you are selling on Amazon’s platform.

Amazon Core Fulfillment Fees Per Unit excluding apparel (May 18, 2022, and after)

Standard-Size Products

For Large standard size: 3+ lb to 20 lb $6.08 + $0.30/lb above first 3 lbs

Oversize Products 

In addition to the charges mentioned above, there is another charge you need to consider if you are selling clothing items.

FBA fulfillment fees changes for apparel in the Clothing and Accessories category (May 18, 2022, and after)

Oversize apparel tiers (small oversize, large oversize, and special oversize) will be charged the core FBA the fulfillment fees.

Amazon FBA Fees For Non-Amazon Products – Multi-Channel Fulfillment

You can also use Amazon FBA for products that are sold on channels other than Amazon. For instance, if you have a dedicated website for your product, then you can use Amazon FBA to fulfill your orders without having to worry about doing it yourself. Amazon calls this Multi-Channel Fulfillment or MCF for short. It is worth noting that Amazon FBA fees for MCF are relatively higher.

Amazon understands that you may have a variety of shipping options for the products listed on your site. With that in mind, Fulfillment by Amazon has designed its MCF fees for a variety of shipping options: Standard (3-5 days), Expedited (2-day), and Priority (Next day shipping). These prices have been mentioned in the tables below, for two product-size categories – Standard and Oversize.

Standard 3-5 business day shipping

Oversize Items shipping costs 

Expedited 2-day shipping

Standard-Size Products 

Oversize Products

Priority next-day shipping

Size tier 1 unit order 2 unit order 3 unit order 4 unit order 5+ unit order
Small standard: 16 oz or less $12.80 $7.30 $6.30 $5.80 $4.30
Large standard: 16 oz or less $13.80 $7.80 $6.80 $5.90 $4.80
Large standard: 1 to 2 lb $13.85 $7.85 $6.85 $5.95 $4.85
Large standard: 2 to 21 lb $13.85+$0.39/lb
above first 2 lb
$7.85+$0.39/lb
above first 2 lb
$6.85+$0.39/lb
above first 2 lb
$5.95+$0.39/lb
above first 2 lb
$4.85+$0.39/lb
above first 2 lb
Small oversize $20.80+$0.39/lb
above first 2 lb
$11.30+$0.39/lb
above first 2 lb
$8.70+$0.39/lb
above first 2 lb
$8.25+$0.39/lb
above first 2 lb
$7.90+$0.39/lb
above first 2 lb
Size tier Unit Order
Medium oversize $31.30 + $0.39/lb above first 2 lb
Large oversize $78.30 + $0.80/lb above first 90 lb
Special oversize $143.30 + $0.92/lb above first 90 lb

Items such as those that have Lithium batteries or the items that are sold with them will have an additional cost of $0.11 per-unit fulfillment fee.

From the prices mentioned above, it is evident that the more products you sell on your website, the cheaper it will be for you to use the Fulfillment by Amazon. This is especially true if your website is selling more products than your channel on Amazon.

Amazon FBA Monthly Storage Fee

Amazon charges monthly inventory storage fees between the 7th and 15th day of the month following the month for which the fee is applicable. For instance, if you want to see your inventory storage fee for January, take a look at the February Payments report transactions from February 7-15.

Besides, the fee varies based on product-size tier and the time of the year. Though standard-size products are smaller than oversize products, they need complex and costly shelving and bins for storage. The fee is charged by the cubic foot. So overall storage fees for standard-size products may be less than those for oversize products, based on volume.

Storage Month Standard-Size Oversize
January – September $0.75 per cubic foot $0.48 per cubic foot
October – December $2.40 per cubic foot $1.20 per cubic foot

Monthly Storage Fee – Dangerous Goods

Month Standard-size Oversize
January – September $0.99 per cubic foot $0.78 per cubic foot
October – December $3.63 per cubic foot $2.43 per cubic foot

Amazon FBA Long Term Storage Fee

When the inventory is in the fulfillment center for more than 365 days, Amazon charges a monthly long-term storage fee (LTSF) of $6.90 per cubic foot or $0.15 per unit, whichever is greater. Amazon calculates long-term storage fees on the 15th of each month.

Credit: Sellerapp

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