It is essential to have the knowledge of Amazon FBA Fees to run a viable Amazon Business.

Amazon FBA Fees details

• Referral Fee | Amazon FBA Fees

As said earlier, the services offered by Amazon FBA don’t come for free. There are different types of charges for different types of services. For example, Amazon charges a referral fee every time a product is sold. The referral fee is deducted per unit as a share of profit for giving buyer and seller a platform to interact. The fee differs for different products; 8% to 15% is the average referral fee for most products.

• Selling Plan | Amazon FBA Fees

Furthermore, it costs some amount to sell on amazon; this comes under the selling plan. $0.99 is charged for an individual plan, best suited for newbies or sellers trying the new product in the market. $39.99 is charged for the professional plan, which is best suited for brand owners with a high reputation amongst sellers. It is simple mathematics; if you are sure that forty or more units will be sold, go for the professional plan as it will give a greater profit than the individual plan. The greater the sale, the lesser the charge per unit for this plan.

• Fulfillment Fee | Amazon FBA Fees

Next in line is the fulfilment fee. It is the fee Amazon will deduct for “pick and drop” shipping and providing space at the fulfillment center and customer support. The fulfillment fee is categorized into two parts; apparel and non-apparel. The fee depends on the dimension of the product, the weight of the product, and the size tier. For further information on specified rates, visit the Amazon Fulfillment page. Lastly, Amazon provides a list of programs like FBA Small and Light, Multi-Channel Fulfillment, Dangerous Goods, Long-Term Inventory Storage, and more to facilitate the seller by remaining competitive and paying for the suited service only.

• Storage Fee | Amazon FBA Fees

The storage charges are divided into two categories; from January to September and October to December. The rates are three times more for the year’s second period; for instance, $2.40 per cubic foot for October to December and $0.75 per cubic foot for January to September. Note that the mentioned rates are for standard size, and the rates for an oversize category are different; $0.48 per cubic foot for January to September and $1.20 for October to December.

• Inventory Fee | Amazon FBA Fees

The inventory fee is somewhat linked to the fulfillment fee. It is paying Amazon for long-term inventory storage, removal order fees, or dangerous products since they require a special storage area and supervision. For long-term units, aging between 271 days to 365 days will be surcharged at $1.50 per cubic foot. And if the aging is above 365 days, it is $0.15 per unit or $6.50 per cubic foot, whichever is greater. Lastly, whenever a product is requested to be removed from the fulfilment centre, a fee is charged based on per unit removed.

The rate depends on the weight of the shipment. There are two categories in the product removal section; standard size and oversize or special handling items like jewelry, shoes, dangerous goods, and more. All the rates are mentioned on the Amazon FBA page for précised rates or fees.

• Rental Book Service Fee | Amazon FBA Fees

The product containing books or reading materials, which are for rent purposes, will cost $5.00. Rental policies and refund conditions should be read before ordering or entering the rental business on Amazon FBA.

• Refund Administration Fee | Amazon FBA Fees

$5.00 or 20%, whichever is less, is charged for refund administration. Moreover, the referral fee is returned to the seller. Keeping a good link with the customer is preferred to avoid refunds as it affects the profit earned. Work on the negative reviews to make the product more appealing and avoid order cancellation.

Starting in Amazon FBA can be challenging for some people. Therefore, we have written detailed articles for our users to make it easier. There are so many categories out there for Amazon people get confused. Please don’t forget to read our detailed article Top Amazon FBA Business Categories in the US- Which One to choose in 2022.