Fulfillment by Amazon (FBA) has played a vital role in Amazon’s massive development over the past decades. FBA is not a new concept, as many enterprises have used it successfully. Before joining any market, one of the most crucial factors to consider is expense. So, if you’re thinking about using FBA services but aren’t sure how much budget you’ll need to invest, this blog will give you all the information you need about FBA fees.
Hopefully, it will help you to determine if FBA is appropriate for you. And now it’s time to get started!
1. Fulfillment fee
FBA fee – a service fee paid to Amazon to process an order when a buyer places an order from its platform. This cost is calculated on a per-product basis and varies depending on your category, size, and weight. The fulfillment fee will cover the entire cost of picking, packing, and shipping.
a. Rate cards:
|
Standard-size product tiers |
|||
|
Product type |
Size tier |
Weight |
Fulfillment fee per unit |
|
Most products (non-dangerous, non-apparel) |
Small standard |
6 oz or less |
$2.70 |
|
6+ to 12 oz |
$2.84 |
||
|
12+ to 16 oz |
$3.32 |
||
|
Large standard |
6 oz or less |
$3.47 |
|
|
6+ to 12 oz |
$3.64 |
||
|
12+ to 16 oz |
$4.25 |
||
|
1+ to 2 lb |
$4.95 |
||
|
2+ to 3 lb |
$5.68 |
||
|
3+ lb to 20 lb |
$5.68 + $0.30/lb above first 3 lb |
||
|
Apparel |
Small standard |
6 oz or less |
$3.00 |
|
6+ to 12 oz |
$3.14 |
||
|
12+ to 16 oz |
$3.62 |
||
|
Large standard |
6 oz or less |
$3.87 |
|
|
6+ to 12 oz |
$4.04 |
||
|
12+ to 16 oz |
$4.65 |
||
|
1+ to 2 lb |
$5.35 |
||
|
2+ 3 lb |
$6.08 |
||
|
3+ lb to 20 lb |
$6.08 + $0.30/lb above first 3 lb |
||
|
Dangerous goods |
Small Standard |
6 oz or less |
$3.63 |
|
6+ to 12 oz |
$3.85 |
||
|
12+ to 16 oz |
$3.89 |
||
|
Large Standard |
6 oz or less |
$4.22 |
|
|
6+ up to 12 oz |
$4.39 |
||
|
12+ to 16 oz |
$4.82 |
||
|
1+ to 2 lb |
$5.52 |
||
|
2+ to 3 lb |
$6.12 |
||
|
3+ lb to 20 lb |
$6.12 + $0.30/lb above first 3 lb |
||
|
Oversized Products |
|||
|
Product type |
Size |
Shipping weight |
Fulfillment fee per unit |
|
Non-dangerous goods (both apparel and non-apparel) |
Small Oversize |
70 lb or less |
$8.66 + $0.38/lb above first lb |
|
Medium Oversize |
150 lb or less |
$11.37 + $0.39/lb above first lb |
|
|
Large Oversize |
150 lb or less |
$76.57 + $0.79/lb above first 90 lbs |
|
|
Special Oversize |
Over 150 lb |
$138.11 + $0.79/lb above first 90 lbs |
|
|
Dangerous goods (both apparel and non-apparel) |
Small Oversize |
70 lb or less |
$9.38 + $0.38/lb above first lb |
|
Medium Oversize |
150 lb or less |
$12.20 + $0.39/lb above first lb |
|
|
Large Oversize |
150 lb or less |
$87.93 + $0.79/lb above first 90 lbs |
|
|
Special Oversize |
Over 150 lb |
$157.91 + $0.79/lb above first 90 lbs |
|
b. Example:
|
Large Standard Size (garments, 12+ to 16 oz) |
|
 |
T-shirt Dimension: 14 x 10 x 0.76 inches Unit weight: 12.32 oz Shipping weight: 12.32 oz |
|
Fulfillment fee (per unit) |
Large standard garment sizes with a shipping weight greater than 12 ounces and less than 16 ounces: $4.65 |
2. Long-term Storage Fee
An item that has been stored in the fulfillment center for more than 365 days will be charged long-term storage by month in addition to the monthly storage fee.
a. Fee details
| Time of charge | Monthly, usually 18th and 22nd day of each month |
| Fee structure | Per unit stored. Fees are based on unit volume or per unit, whichever is greater. |
| Amount | $6.90 per cubic foot or $0.15 per unit, whichever is greater |
b. How to Determine Inventory Charges
You can use Inventory Condition Management to determine which ASINs are required charges for long-term storage, including 60-day ASINs. On the Manage Inventory Health, you can locate and filter their inventory by how long it has been in the fulfillment center (FC).
- 0 – 60 days
- 61 – 90 days
- 91 – 180 days
- 181 – 330 days
- 331 – 365 days
- More than 365 days
This data can assist you in estimating how many items will be stored in fulfillment centers (FC) for more than 365 days on the next inventory liquidation date.
c. Fee examples:
| Toy: 11 x 8 x 2 inches | Storage duration | Applicable cubic-foot fee | Applicable per-unit fee | Billed long-term storage fee (the greater of the two) |
| 1 unit | More than 365 days | $0.70 | $0.15 | $0.70 |
| 2 units | More than 365 days | $1.41 | $0.30 | $1.41 |
| 10 units | More than 365 days | $7.03 | $1.50 | $7.03 |
| Book: 8 x 6 x 0.5 inches | Storage duration | Applicable cubic-foot fee | Applicable per-unit fee | Billed long-term storage fee (the greater of the two) |
| 1 unit | More than 365 days | $0.10 | $0.15 | $0.15 |
| 2 units | More than 365 days | $0.19 | $0.30 | $0.30 |
| 10 units | More than 365 days | $0.96 | $1.50 | $1.50 |
3. Monthly Inventory Storage Fee
Amazon charges a monthly storage fee based on the amount of space your products take up in their warehouse in cubic feet, in addition to long-term storage fees. As indicated below, items are divided into two categories: non-dangerous goods and dangerous goods, with different price regulations.
a. Fee Details:
| Collection Period | Monthly, usually on the 7th to 15th day of the month, in the following month when charges are incurred. |
| Fee Structure | Based on your average daily storage space at fulfillment centers, per storage utilization. Prices are determined by the product type, size class, and date of year. |
b. Detailed Fee Sheet:
|
Non-dangerous Goods |
||
|
Months |
Standard Size |
Oversize |
|
January – September |
$0.75/cubic foot |
$0.48/cubic foot |
|
October – December |
$2.40/cubic foot |
$1.20/cubic foot |
|
Dangerous Goods |
||
|
Month |
Standard Size |
Oversize |
|
January – September |
$0.99/cubic foot |
$0.78/cubic foot |
|
October – December |
$3.63/cubic foot |
$2.43/cubic foot |
4. Return Fee
The return charge for Apparel & Footwear products is determined per product. Return fees will not apply to products in the Watches, Jewelry, Luggage, Bags, and Sunglasses category.
a. Fee details:
| Time of charge | When the assessment of the item’s condition is complete, which occurs after the item is returned to Amazon’s fulfillment center. |
| Fee structure | Per unit returned. Rate based on product size tier |
b. Rate cards:
|
Size tier |
Shipping weight |
Return processing fee |
|
Small standard |
6 oz or less |
$2.12 |
|
6+ to 12 oz |
$2.23 |
|
|
12+ to 16 oz |
$2.32 |
|
|
Large standard |
6 oz or less |
$2.40 |
|
6+ to 12 oz |
$2.76 |
|
|
12+ to 16 oz |
$2.85 |
|
|
1+ to 2 lb |
$2.96 |
|
|
2+ to 3 lb |
$3.41 |
|
|
3+ lb to 20 lb |
$3.41 + $0.20/lb above first 3 lb |
|
|
Oversize |
Small oversize |
$4.19 + $0.20/lb above first 2 lb |
|
Medium oversize |
$10.57 + $0.25/lb above first 2 lb |
|
|
Large oversize |
$43.70 + $0.25/lb above first 90 lb |
|
|
Special oversize |
$75.08 + $0.25/lb above first 90 lb |
c. Fee example:
The example is a t-shirt with an outbound shipping weight of 6.1 ounces. If the customer decides to return this item, you will be charged a returns processing fee of $2.23.
5. FBA disposal order fees
Disposal fees are charged per item when you request that Amazon dispose of items in your FBA inventory stored at an Amazon fulfillment center. You can also remove inventory from a fulfillment center by submitting a removal order.
a. Fee details:
| Time of charge | When disposal order is complete |
| Fee structure | Per unit disposed. Rate based on unit shipping weight |
b. Rate cards:
|
Size tier |
Shipping weight |
Disposal fee per unit |
|
Standard size |
0 to 0.5 lb |
$0.32 |
|
0.5+ to 1.0 lb |
$0.35 |
|
|
1.0+ to 2.0 lb |
$0.48 |
|
|
More than 2 lb |
$0.67 + $0.35/lb above 2 lb |
|
|
Oversize and special handling items* |
0 to 1.0 lb |
$0.60 |
|
1.0+ to 2.0 lb |
$0.72 |
|
|
2.0+ to 4.0 lb |
$1.26 |
|
|
4.0+ to 10.0 lb |
$2.32 |
|
|
More than 10.0 lb |
$3.50 + $0.35/lb above 10 lb |
*Special handling items may include apparel, shoes, watches, jewelry, and dangerous goods.
c. Fee examples:
You decide to request the disposal of two standard-size units, and each unit has a shipping weight of 0.56 lb. The unit’s shipping weight is rounded up to 0.6 lb
→ Disposal fee of 1 unit = $0.35 → Disposal fee of 2 units = $0.7
You decide to request the disposal of three oversize units, and each unit has a shipping weight of 10.1 lb. The unit’s shipping weight is rounded up to 11 lb
→ Disposal fee of 1 unit = $3.85 ($3.50 for the first 10 lb and $0.35 for the additional 1 lb)→ Disposal fee of 2 units = $11.55
6. FBA removal order fees
Removal fees are charged per-item removed. Typically, removal orders are fulfilled in 14 business days. However, removal order processing may take 30 business days or more during the holiday season and peak removal periods.
a. Fee details
| Frequency of charge | One time |
| Time of charge | When removal order is complete |
| Fee structure | Per unit removed. Rate based on unit shipping weight |
b. Rate cards
|
Size tier |
Shipping weight |
Removal fee per unit |
|
Standard size |
0 to 0.5 lb |
$0.32 |
|
0.5+ to 1.0 lb |
$0.35 |
|
|
1,0+ to 2.0 lb |
$0.48 |
|
|
More than 2 lb |
$0.67 + $0.35/lb above 2 lb |
|
|
Oversize and special handling items* |
0 to 1.0 lb |
$0.60 |
|
1.0+ to 2.0 lb |
$0.72 |
|
|
2.0+ to 4.0 lb |
$1.26 |
|
|
4.0+ to 10.0 lb |
$2.32 |
|
|
More than 10.0 lb |
$3.50 + $0.35/lb above 10 lb |
*Special handling items may include apparel, shoes, watches, jewelry, and dangerous goods.
c. Fee examples:
| Product | Shipping weight | Size tier | Removal fee |
| Book | 0,5 lb | Standard size | $0,32 per unit |
| Shoes | 1 lb | Standard size (special handling) | $0,60 per unit |
| Bell | 22 lb | Oversize | $7,70 per unit |
Resources
12 August 2024
Resources
12 August 2024
Resources
12 August 2024
