Amazon FBA (Fulfillment by Amazon) has revolutionized e-commerce by providing a platform that handles storage, shipping, and customer service for sellers. However, there are several associated fees that sellers need to be aware of to manage their business effectively. In this detailed overview for 2024, we will explore all the costs related to using Amazon FBA, helping you understand and prepare for the financial aspects of selling through Amazon.
1. Fulfillment Fees
Fulfillment fees are the charges Amazon collects for picking, packing, and shipping your products. These fees are based on the size and weight of your items.
- Standard-size Products: These are items weighing less than 20 lbs with specific dimensional requirements. Fulfillment fees for standard-size items in 2024 range between $2.50 and $6.00.
- Oversize Products: Items that exceed standard-size dimensions or weigh over 20 lbs fall under oversize categories. Fulfillment fees start at $9.00 and can exceed $137.00 for large items.
2. Monthly Storage Fees
Amazon charges monthly storage fees based on the amount of space your products occupy. These fees change depending on the time of year:
- January to September: $0.87 per cubic foot for standard-size products and $0.56 for oversized items.
- October to December: During the holiday season, fees increase to $2.40 per cubic foot for standard-size products and $1.40 for oversized items.
3. Long-term Storage Fees
For products stored in Amazon's fulfillment centers for over 365 days, long-term storage fees are applied. This fee is $6.90 per cubic foot or $0.15 per unit, whichever is greater.
4. Removal and Disposal Fees
If you choose to remove inventory or have it disposed of by Amazon, fees are charged for this service. In 2024, removal fees typically range from $0.52 to $2.25 per unit, while disposal fees are similar.
5. Unplanned Service Fees
Unplanned service fees occur when shipments to Amazon do not meet their preparation or labeling requirements. Fees include:
- Labeling: $0.55 per unit
- Polybagging: $1.00 per unit
6. FBA Prep Service Fees
Amazon also offers FBA Prep Services for sellers who prefer them to handle product preparation. Fees include:
- Labeling: $0.30 per unit
- Polybagging: $1.00 per unit
- Bubble-wrapping: $1.50 per unit
7. Returns Processing Fees
For products eligible for free returns, Amazon charges a returns processing fee ranging from $2.00 to $5.00 per unit. Make sure to account for these costs if your products fall into return-eligible categories.
8. Referral Fees
Amazon charges a referral fee on every sale, which is a percentage of the total sales price. In 2024, this fee ranges between 6% and 45%, depending on the category.
9. Refund Administration Fees
If a customer returns an item, Amazon refunds the referral fee but retains a refund administration fee. This fee is either $5.00 or 20% of the referral fee, whichever is lower.
10. High-Volume Listing Fees
Sellers with over 100,000 active ASINs will be charged a high-volume listing fee of $0.005 per ASIN, applied monthly.
How SellerMagnet Can Help
Managing FBA fees can be overwhelming, but tools like SellerMagnet can simplify the process. SellerMagnet's software helps sellers track inventory, analyze fees, and boost profitability. With features such as real-time profit calculators, inventory management, and repricing tools, SellerMagnet empowers sellers to optimize their Amazon FBA operations.
