All About Amazon FBA Fees

written on 21, 2, 2020

If you want to sell your items on Amazon, their FBA program might interest you. Yes, this is a one-of-a-kind program tailored for entrepreneurs who are looking to save some time, all while racking up on the profits. But what exactly is this program all about and how much Amazon fba fees will you need to pay for it? Well, that’s what we will explore over the next few sections of this article.  

The Amazon FBA Program in a Nutshell 

The Fulfilled by Amazon Program is one of the best plans from this eCommerce giant. This plan is designed to help anyone who’s looking to make some money from their product sales. With IO Scout Chrome Extension all product data right on Amazon pages. To sign up, all you need to do is create a listing. Now, every time any buyer purchases your product, Amazon will collect and deliver it to the customer at the earliest. Whether it’s storing, packing, or shipping the product- this eCommerce portal will handle it all! Of course, you need to pay a small fee to avail this service, and over the following section, we will take a closer look at all the charges you’ll need to bear.  

fba amazon fees

A Fee for Referral 

As an FBA seller, you’ll need to pay a small referral charge as the commission for all the items you’re selling via their portal. While there’s usually a flat charge involved in the process, in most cases it’s either 15% or even lesser.  

The biggest highlight of this arrangement is that you do not need to bear any upfront charges. The fees only come to the picture after every successful sale. The amount usually varies depending on the type of item you’re selling.  

Individual or Professional Account Charges 

Most Amazon sellers are probably familiar with the different merchant accounts. You can currently choose from either the individual or the professional plan. For the former arrangement, you’re required shell out $0.99 against every item sold. The latter process, however, involves a flat fee of $40. This is for your entire monthly proceeds and it’s directly charged from your seller account.  

Refund Charges 

If any customer is dissatisfied with a product you’ve sold, they can request a refund. Since the eCommerce portal is handling this entire process, they will levy a small fee for their facility. You are either required to pay $5 (flat charge) or 20% of your item’s value. A part of the fulfillment by amazon fees, the lowest value (from the two options) will be charged to the seller.  

Fulfillment Fees 

Since you’ve opted for the fulfillment facility by amazon, you also need to pay FBA Amazon fees. The shopping portal charges this amount for shipping, packing, and managing your product and it will vary depending on your item’s size. Usually, the amount starts from $2.41 and goes up to a whopping $137.32 if your item is oversized. Your listing will be deemed oversized if it crosses the threshold of 21 lbs. As of now, you cannot sell a product beyond 151 lbs. The platform will conduct some minor arrangements for special situations.  

Storage Fees 

As a part of Amazon FBA cost, sellers are required to pay fees for storing their items in Amazon’s inventory. Like your seller accounts, here you’ll get the option for choosing between monthly storage and more long-term storage. For the first option, you need to pay different fees depending on your product’s size. The fees also vary depending on the time of the year when you’re storing the items. It usually starts from $.48 and might range up to $2.40 (for every cubic foot).  

If the product has been stored for more than three months, then you might have to pay almost $7 for every cubic foot your item uses. Again, if it’s stored for more than a year, then you’d have to pay an extra $0.15 for every unit of the product.  

It is worth noting that the amazon fba fee for storing might go up during the shopping portal’s busy seasons. The platform has this arrangement for coaxing sellers to get done with their slow-selling products.  

Bottom Line 

While these were some of the fba fees the eCommerce portal usually charges, they may vary according to the product you’re selling or Amazon’s own specific policies. That is why it is best to double-check about the fees on the portal itself to avoid any miscommunication. Being Amazon sellers, we think the overall charges are quite decent given the facilities and brand value the portal is offering you. That is also one of the many reasons why the fulfillment option is the best program from the company.  

by earthquake, [email protected]