FBA Fees on Amazon: Be Smart. Reduce Your Amazon FBA Costs!

What FBA fees on Amazon does a seller pay?

Being a seller on Amazon means enjoying lots of financial opportunities, but you will also have to pay some Amazon FBA fees. In this article, we will dive deeper into how to reduce FBA costs on Amazon and what they actually are.

If you want to know more about general Amazon seller fees, please read our corresponding article.

So, let’s start with the basics before we will have a closer look at FBA fees on Amazon. If you decide to sell on the online giant’s marketplaces, you have three options regarding fulfillment methods:

  1. Fulfillment by Amazon (FBA): The seller ships their product to Amazon directly, and Amazon processes and fulfills orders on their behalf. 
  2. Fulfillment by Merchant (FBM): After receiving an order through the Amazon Marketplace, the seller sends their own merchandise directly to the customer.
  3. Seller-Fulfilled Prime (SFP):The seller sends their own products directly to the customer in accordance with Amazon Prime’s shipping policies, allowing them to display the Prime badge on their Amazon Marketplace products. After that, the seller is solely responsible for product fulfillment and FBA shipping cost.

It goes without saying that each of these fulfillment options has its own set of advantages, disadvantages, and different paying options, but the majority of Amazon sellers use FBA. Why? It’s very convenient when it comes to shipping: Sellers can use Amazon’s fulfillment centers to store their goods and then have Amazon handle the selecting, packaging, and shipping. 

However, if you think that you can just sign up for Amazon FBA, kick up your feet and start relaxing, we’re sorry to say that you might have gotten the wrong impression regarding the Amazon FBA Program. Costs such as shipping and storage fees are only the beginning. Let’s get into the details.

Well, What Are FBA Costs?

FBA costs on Amazon include fees for storage.

The cost of Amazon FBA is “dynamic”, which means it might differ depending on criteria such as the type and quantity of the products being stored and sent, the amount of time they are stored, seasonality, and so on.

There are two types of Amazon FBA fees in addition to the seller fee: fulfillment fees and inventory storage fees. In other words, the cost of storing your products in Amazon fulfillment centers is included in the FBA inventory storage costs. Here you can find all FBA fees on Amazon, but we will cover almost everything in this article as well. 

Amazon FBA Fulfillment Fees

This type of Amazon FBA fee encompasses every step of the fulfillment process, unlike many fulfillment service pricing models that charge separately for picking, packing, and shipping. The fulfillment cost is calculated based on the product size and weight of the item being shipped. “Standard size” and “Oversize” are the two basic types of item sizes.

Items that weigh less than 20 pounds or have dimensions less than 18x14x8 inches are considered the standard size. Correspondingly, items that are larger or weigh more than what is indicated above are considered oversized.

There are multiple subcategories within each of those categories. Your FBA fees on Amazon will be mostly determined by what you’re selling on the marketplace.

Standard size product fulfillment fees can range from $2.41 for things under one pound to over $4.71 for items over two pounds, plus $0.38 per pound above two pounds.

Amazon FBA fees for large products (above 18x14x8 inches) start at $8.13 for small oversize objects (over 70 pounds or dimensions greater than 60 inches on the longest side), plus $0.38 each pound beyond that.

On the other hand, fulfillment expenses for particularly oversize products (weighing more than 150 pounds or measuring more than 108 inches on the longest side) start at $137.32, with an extra $0.91 per pound after the first 90 pounds.

Amazon also charges $0.40 per item in fulfillment costs for clothing.

There is something you should consider as a marketplace seller: while Amazon’s fulfillment prices include packing, your items will be shipped in Amazon-branded boxes. This implies that Amazon’s logo is front and center, and any brand experience you want to build through shipment may be overshadowed.

FBA fees calculator can be used to estimate how much you’ll spend in fees if you apply the Fulfillment by Amazon business model for a certain product. The use is easy and pretty straightforward. You can try out the Amazon FBA fees calculator here.

What Are the Current FBA Fees on Amazon? Let’s Take a Look!

FBA fees can be divided into three categories: Amazon FBA storage fees, fees for certain services, and other Amazon FBA fees such as penalty charges, for instance. 

Amazon FBA Storage Fees

Shipping to Amazon: included in FBA cost

Amazon charges storage fees to maintain your inventory since your items are stored in Amazon’s fulfillment facilities.

FBA storage costs are classified into two types: monthly and long-term.

FBA Fees on Amazon for Monthly Storage

Amazon charges a monthly storage fee if you have merchandise in an Amazon warehouse at the end of the month. The amount is either deducted from your account balance or charged to your credit card.

FBA Fees on Amazon for Long-Term Storage

Every month on the 15th, Amazon undertakes inventory clean-ups. During the clean-up, Amazon keeps track of any items that have been sitting in its fulfillment facilities for 180 days or more. Let’s see what Amazon FBA fees are implied here.

When products are held for 180 days or more, Amazon charges the seller a long-term storage cost of $6.90 per cubic foot of storage used.

You will be charged $0.15 per unit for items that have been in Amazon’s warehouses for more than 365 days.

Long-term storage costs, like monthly storage fees, are taken from your Amazon seller account balance or the credit card you provided when you registered as an Amazon seller on the same day each month. 

Amazon FBA Fees for Certain Services

Amazon FBA shipping cost

There are FBA fees on Amazon that must be paid when you sell particular items or provide a specific service that requires Amazon to fulfill extra tasks.

Closing Costs

Media items such as books, DVDs, CDs, and Blu-Ray are charged a fixed $1.80 fee for each transaction, and only vendors who specialize in selling these products are subject to these costs.

FBA Fees on Amazon for High-Volume Listing

Sellers with thousands of ASINs may be forced to pay a $0.005 monthly flat charge per qualifying ASIN.

High volume listing fees are paid in conjunction with Amazon FBA storage fees. 

FBA Fees on Amazon for Rental Book Service

Sellers that rent textbooks on Amazon are required to pay a $5.00 rental book service charge for each textbook rental sold.

Other FBA Fees on Amazon

Amazon FBA: Shipping fees don't include packaging items.

Using FBA to fulfill Amazon orders may entail additional expenses depending on your business needs. Let’s divide these Amazon FBA fees into some subcategories:

Removal Charges for Inventory

Furthermore, if you decide you no longer want to use FBA, removing your inventory from their fulfillment facilities might be expensive. If you opt to have Amazon remove and return your inventory to you, you will be charged $0.50-$0.60 per item, depending on the size of the item. It will cost you $0.15 to $0.30 for each item for Amazon to dispose of your inventory for you.

Penalty Charges

Amazon is notorious for having extremely stringent seller criteria, and they also employ fines to penalize sellers who do not meet their regulations. We want to mention this here unless these costs are no FBA fees on Amazon in general. Amazon, for example, would levy a labeling Amazon FBA fee to sellers who do not adhere to their stringent barcode label standards for FBA merchandise. Sellers who have not prepared their items in compliance with the rigorous packing and prep standards will be charged an unexpected FBA prep fee. White space surrounding the Amazon barcode and associated text (0.25 inch on the sides and 0.125 inch on the top and bottom), ASIN or FNSKU, product name, and item condition are among the label requirements.

Fees for the Package Preparation

Of course, you may always have Amazon prepare and package your items for you for a charge. Depending on your margins and order volume, this might either save you time or add extra expenditures to your brand.

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How to Reduce Amazon FBA Fulfillment Fees

Here are 5 quick tips to help you save money:

  1. Keep an item’s weight and size to a minimum. Keep in mind that FBA storage rates are dependent on these two factors.
  2. If possible, try bundling things. If you sell it separately, you must pay FBA fees on Amazon separately as well. Bundled goods are also ideal for Amazon promotions.
  3. Arrange for an inventory clean-up. Amazon considers aged inventory to be an eyesore, and they will punish you for not selling your items immediately.
  4. Promote a clearance sale for your out-of-date inventory.
  5. List your unwanted things on the Amazon Outlet. This little-known area sells overstock and discount products.

FBA Errors

Amazon FBA fees: the amount differs depending on many factors.

Another point that we want to make here are the FBA errors. Although they are not direct FBA fees on Amazon, they are still very important. Because if they remain undetected, you will lose your money! 

The most typical mistakes in the Amazon FBA process fall into three categories:

  • The item has been damaged and cannot be sold.
  • Several return errors have occurred.
  • The calculation of the FBA charge has a flaw.

Because the products were transferred to Amazon, Amazon must pay any later loss of value throughout the fulfillment process. In contrast, reimbursements do not happen by themselves. In reality, it is the seller’s obligation to provide documentation of these value losses and to file a claim with Amazon.

Without a doubt, the seller’s time spent preparing reports and resolving open issues may rapidly become unprofitable. This is why we developed the “Lost & Found” tool at SellerLogic, an automated solution that handles the laborious process for you. SellerLogic Lost & Found analyzes the data identifying the FBA issues listed above. Each visible transaction is the result of a separate operation. This can be done retrospectively for up to 18 months in most case types.

Final Thoughts: 

There is no such thing as a free lunch. Amazon FBA cost is something that you have to pay, but forewarned is forearmed which means that now you have an understanding of how to reduce Amazon FBA fees and what expenses you should always keep in mind as an Amazon seller. 

Frequently Asked Questions

What is the FBA fee on Amazon?

FBA fees are the fees for the Fulfillment by Amazon service, they depend on many aspects such as the type and quantity of the products being stored and sent, the amount of time they are stored, seasonality, and so on.

How much does FBA cost?

The cost of Amazon FBA is “dynamic”, which means it might differ depending on criteria such as the type and quantity of the products being stored and sent, the amount of time they are stored, seasonality, and so on.

Does FBA fee include shipping?

FBA Fulfillment Fees encompass every step of the fulfillment process, unlike many fulfillment service pricing models that charge separately for picking, packing, and shipping.

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SellerLogic Repricer
Enables, by means of dynamic and intelligent price control, to place the products in the Amazon Buy Box and sell them at the highest possible price.
SellerLogic Lost & Found
Monitors FBA processes for possible errors and assists sellers with their refund claims against Amazon. The seller sends the cases to Amazon via copy & paste.