E-commerce retailers can leverage business solutions offered by Amazon to expand revenues. One such business solution is Amazon FBA. Fulfillment by Amazon (another name for Amazon FBA) enables e-commerce sellers to store and ship their products from Amazon warehouses – regardless of whether they sell their products on Amazon or not.
What’s the best part about using Amazon FBA? Well, sellers get access to one of the world’s most streamlined storage and shipping services. Amazon FBA services handle storing, packaging, as well as shipping of the products.
Though you might be tempted to try out Amazon FBA services, it’s important to have first-hand knowledge of the costs involved before getting started. Deciphering Amazon FBA shipping fees can be like solving a jigsaw puzzle. However, that’s about to change since we’re about to explain the A-to-Z of Amazon FBA fees.
Keep reading to find out more.
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Benefits of Opting for the Amazon FBA Program
Amazon FBA can be beneficial for sellers in different ways. It presents several business benefits, the most significant of which have are below:
Category Gates
Here is a list of Amazon gated categories as of September 2021:
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Amazon FBA Pricing – Explained
The Amazon FBA service is indeed the best out there. However, such premium services come at a cost known as the Amazon FBA fee. The pricing of Amazon FBA depends on three significant factors:
If you decide to sell your products on Amazon through Amazon FBA services, then you’ll have to consider two other fees:
Another factor that sellers should analyze is the weight and size of their products. As we mentioned before, Amazon FBA takes the weight and size under consideration for pricing. To make things simpler for the seller, Amazon FBA has split the product size into two types:
Apart from the above product size categories, there are further subdivisions. We have discussed the drill-down of sub-categories in the below table:
Product Size Category | Weight (In Pounds) | Longest Side (Inches) | Median Side (Inches) | Shortest Side (Inches) | Length + Girth (Inches) |
|---|---|---|---|---|---|
Small standard-size | Equal to or less than 12 lb. | 15″ | 12″ | 0.75″ | N/A |
Large standard-size | Equal to or less than 20 lb. | 18″ | 14″ | 8″ | N/A |
Small oversize | Equal to or less than 70 lb. | 60″ | 30″ | N/A | 130″ |
Medium oversize | Equal to or less than 150 lb. | 108″ | N/A | N/A | 130″ |
Large oversize | Equal to or less than 150 lb. | 108″ | N/A | N/A | 165″ |
Special oversize | Over 150 lb. | Over 108″ | N/A | N/A | Over 165″ |
FBA Fees for Products Sold on Amazon
If you are a seller on Amazon already, the chances are that you are already well aware of Amazon’s fulfillment services. These cover pretty much all tasks related to logistics. Amazon FBA will cover packaging, packing, shipping, and even helping your customers through their customer support.
As we had mentioned earlier, the fees for Amazon FBA depend on several factors. The weight and size of the products you’re selling on Amazon determine the costs. All costs mentioned in the article apply to the US.
Standard Size Products
Product Size | Price |
|---|---|
Small (6 oz or less) | $2.70 |
Small (6 oz to 12 oz) | $2.84 |
Large (6 oz or less) | $3.47 |
Large (6+ to 12 oz) | $3.64 |
Large (12+ to 16 oz) | $4.25 |
Large (1+ to 1.75 lb) | $4.95 |
Large (1.75+ to 2 lb) | $4.95 |
Large (2+ to 2.75 lb) | $5.68 |
Large (2.75+ to 3 lb) | $5.68 |
Large (3+ to 4 lb) | $5.98 |
Large (4+ to 5 lb) | $6.28 |
Large (5+ to 6 lb) | $6.58 |
Large (6+ to 7 lb) | $6.88 |
The fees for large standard-size products weighing 3+ lb to 20 lb are $6.08 + $0.30/lb above the first three lbs.
Oversize Products
Product Size | Price |
|---|---|
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 |
Apart from the charges mentioned in the above chart, Amazon FBA levies different rates for clothing items. If you sell clothes, the below table would better suit you.
FBA Fulfillment Fees for Clothing
Size Tier | Shipping weight (packaging weight no longer applies) | Fulfillment cost per unit |
|---|---|---|
Small Standard | · 6 oz or less · 6+ to 12 ox · 12+ to 16 oz | · $3.00 · $3.14 · $3.62 |
Large Standard | · 6 oz or less · 6+ to 12 ox · 12+ to 16 oz · 1+ to 2 lb · 2+ to 3 lb · 3+ to 20 lb | · $3.87 · $4.04 · $4.65 · $5.35 · $6.08 · $6.08 + $0.30/lb above first 3 lbs |
The oversize apparel tiers with Amazon FBA (small oversize, special oversize, and large oversize) will be charged the core of Amazon FBA fees.
Amazon FBA Shipping Fees for Multi-Channel Fulfillment
We love Amazon FBA because it also helps sellers sell products on channels other than Amazon. For example, if a seller has a dedicated website for their products, they can still use Amazon FBA to fulfill the orders.
Multi-channel(MCF) fulfillment is one of the best perks offered by Amazon. However, you should know that Amazon FBA fees are significantly higher for multi-channel fulfillment.
Amazon FBA understands that sellers have a variety of shipping options for the items listed on their site. Keeping that in mind, Amazon FBA has curated its MCF fees for different shipping options:
We've researched and mentioned the price for each shipping option. The below table also includes two product categories – oversized and standard.
Standard Shipping (3-5 Business Days)
Size Tier | 1 Unit Order | 2 Unit Order | 3 Unit Order | 4 Unit Order | 5+ Unit Order |
|---|---|---|---|---|---|
Small standard: 4 oz or less | $3.95 | $2.75 | $2.39 | $1.89 | $1.79 |
Small standard: 4 oz to 10 oz | $4.95 | $3.45 | $2.95 | $2.29 | $1.99 |
Small standard: 10 oz to 16 oz | $5.79 | $4.05 | $3.45 | $2.89 | $2.59 |
Large standard: 10 oz or less | $5.49 | $3.85 | $3.29 | $2.69 | $2.39 |
Large standard: 10 to 16 oz | $5.79 | $3.90 | $3.40 | $2.89 | $2.59 |
Large standard: 1 to 2 lb | $5.95 | $3.95 | $3.45 | $3.35 | $2.95 |
Large standard: 2 to 21 lb | $5.95+ $0.38/lb above first 2 lb | $3.95 + $0.38/lb above first 2 lb | $3.45 + $0.38/lb above first 2 lb | $3.35 + $0.38/lb above first 2 lb | $2.95 + $0.38/lb above first 2 lb |
Small oversize | $10.99 + $0.38/lb above first 2 lb | $6.80 + $0.38/lb above first 2 lb | $5.80 + $0.38/lb above first 2 lb | $4.80 + $0.38/lb above first 2 lb | $3.80 + $0.38/lb above first 2 lb |
Size Tier | Unit Orders |
|---|---|
Medium Oversize | $15.30 + $0.39/lb above first 2 lb |
Large Oversize | $78.30 + $0.80/lb above first 90 lb |
Special Oversize | $143.30 + $0.92/lb above first 90 lb |
Expedited shipping (2-day)
Size Tier | 1 Unit Order | 2 Unit Order | 3 Unit Order | 4 Unit Order | 5+ Unit Order |
|---|---|---|---|---|---|
Small standard: 10 oz or less | $5.69 | $3.99 | $3.29 | $2.89 | $2.49 |
Small standard: 10 to 16 oz | $5.89 | $4.19 | $3.49 | $3.09 | $2.69 |
Large standard: 10 oz or less | $5.79 | $4.09 | $3.39 | $2.99 | $2.59 |
Large standard: 10 to 16 oz | $6.29 | $4.59 | $3.89 | $3.49 | $3.09 |
Large standard: 1 to 2 lb | $6.99 | $4.99 | $4.19 | $3.69 | $3.29 |
Large standard: 2 to 21 lb | $6.99 + $0.38/lb above first 2 lb | $4.99 + $0.38/lb above first 2 lb | $4.19 + $0.38/lb above first 2 lb | $3.69 + $0.38/lb above first 2 lb | $3.29 + $0.38/lb above first 2 lb |
Small Oversize | $11.99 + $0.38/lb above first 2 lb | $7.80 + $0.38/lb above first 2 lb | $7.30 + $0.38/lb above first 2 lb | $7.15 + $0.38/lb above first 2 lb | $6.85 + $0.38/lb above first 2 lb |
Size Tier | Unit Orders |
|---|---|
Medium Oversize | $16.80 + $0.39/lb above first 2 lb |
Large Oversize | $78.30 + $0.80/lb above first 90 lb |
Special Oversize | $143.30 + $0.92/lb above first 90 lb |
Priority Shipping (24-hour / next day)
Size Tier | 1 Unit Order | 2 Unit Order | 3 Unit Order | 4 Unit Order | 5+ Unit Order |
|---|---|---|---|---|---|
Small Standard: 16 oz or less | $12.80 | $7.30 | $6.30 | $5.80 | $4.30 |
Large Standard: 16 oz or less | $13.80 | $7.80 | $6.80 | $5.90 | $4.80 |
Large Standard: 1 to 2 lb | $13.85 | $7.85 | $6.85 | $5.95 | $4.85 |
Large Standard: 2 to 21 lb | $13.85 + $0.39/lb above first 2 lb | $7.85 + $0.39/lb above first 2 lb | $6.85 + $0.39/lb above first 2 lb | $5.95 + $0.39/lb above first 2 lb | $4.85 + $0.39/lb above first 2 lb |
Small Oversize | $20.80 + $0.39/lb above first 2 lb | $11.30 + $0.39/lb above first 2 lb | $8.20 + $0.39/lb above first 2 lb | $7.70 + $0.39/lb above first 2 lb | $7.30 + $0.39/lb above first 2 lb |
Size Tier | Unit Orders |
|---|---|
Medium Oversize | $31.30 + $0.39/lb above first 2 lb |
Large Oversize | $78.30 + $0.80/lb above first 90 lb |
Special Oversize | $143.30 + $0.92/lb above first 90 lb |
Products such as those with Lithium batteries or any other dangerous product will incur an additional cost of $0.11 per unit fee. From the prices mentioned in the above tables, it is eminent that the more products you sell on your site, the more affordable it will be for you to use Amazon FBA
Monthly Storage Fee for Amazon FBA
It is worth mentioning that Amazon charges monthly inventory storage fees between the 7th and 15th of every month following the month for which charges are applicable. For example, if you want to see your inventory storage fee for February, check out the March payment transaction report (the transactions made between March 7 and 15).
You should also know that the monthly storage fees at Amazon FBA will vary significantly based on time of year and product size tiers. Though regular-sized products are smaller than oversized products, they sometimes need complicated and costly storage and shelving. In some cases, small products might be fragile and require extra care, making their storage difficult. Amazon FBA considers the volumetric weight (cubic foot) for charging a monthly storage fee.
Based on volume, the storage fee for standard-size products is less than that of large-sized products. Here’s a table explaining the Amazon FBA storage fees:
Storage Month | Standard-Size Products | Oversize Products |
|---|---|---|
January to September | $0.69 per cubic foot | $0.48 per cubic foot |
October to December | $2.40 per cubic foot | $1.20 per cubic foot |
Monthly Storage Fee for Dangerous Goods
Storage Month | Standard-Size Products | Oversize Products |
|---|---|---|
January to September | $0.99 per cubic foot | $0.78 per cubic foot |
October to December | $3.63 per cubic foot | $2.43 per cubic foot |
Long-Term Storage Fees
When your inventory has been lying in the fulfillment center for about a year, Amazon levies a monthly long-term storage fee. The LTSF or long-term storage fee is $0.15 per unit or $6.90 per cubic foot of the product, whichever is greater. Also, Amazon FBA calculates the long-term storage fee (LTSF) on the 15th day of every month.
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Things To Consider Before You Start
We've not completed explaining the Amazon FBA fees yet. There's a whole range of prices that Amazon levies on its sellers.
Sellers need to consider these additional charges before selling. Otherwise, it might take a bite out of their profits!
How Can I Reduce FBA Fees?
Here are a few ways by which you can reduce your Amazon FBA fees and increase your profits:
Amazon FBA vs Traditional Selling on Amazon
Before concluding this article, let’s go over Amazon FBA and compare it to the traditional way of selling on Amazon. This will give you a better context as to which model works best for you.
Let’s consider two sellers, named A and B, who recently started their business on Amazon. When a consumer orders one of A's products, A is tasked with packing and shipping it carefully.
Additionally, seller A has to take care of other aspects such as storing the stock and offering customer support. Though this selling cycle might not look challenging for purchasing one product, it becomes a Herculean task for seller A if he tries to expand his business.
Moreover, since seller A is trying to do business all by himself, there is scope for error. A’s warehousing, packing, and shipping model is apt for a small business. On the other hand, seller B made the right decision by delegating these responsibilities to Amazon FBA. All B has to worry about is shipping his products to Amazon, and Amazon FBA will take care of the rest. Amazon FBA stores its inventory in highly secure and safe fulfillment centers and then packages, ships, and offers customer assistance. Choosing Amazon FBA will let B's business grow and expand. Moreover, Amazon FBA's highly trained professionals will also ensure an error-free selling process for B.
With plenty of tools, sellers can easily track and monitor their inventory. Sellers can set up and configure Amazon FBA on the Amazon Seller Central dashboard. You'd also find the dashboard to be highly user-friendly and easy to understand.
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For anyone looking to take up self-employment or venture into lifestyle businesses, running a venture using Amazon FBA should be on the list.
FAQs
Three components(fulfillment, closing, referral fees) make up the overall Amazon FBA fees. Moreover, Amazon FBA also applies tax which differs from one country to another. You can take the help of the Amazon FBA FAQ page or pricing policy to understand tax rates for your country.
Here’s how to calculate the total FBA fee:
Total FBA fee = fulfillment fee + closing fee + referral fee + tax
Sellers indeed have to pay different fees while doing business with Amazon FBA. There are fees such as picking and packaging, commission, weight handling, order handling, disposal, and storage. However, selling with Amazon FBA has several perks.
The streamlined Amazon FBA service can help you expand your business and customer base. It can have a considerable impact on the success of your business.
The profits you generate with Amazon FBA will depend on several factors. For example, the earnings for sellers will vary depending upon the demand in the market and the type of product you are selling. However, most Amazon sellers claim that they make a wholesome amount with Amazon. Amazon also happens to be an excellent platform for start-ups and small businesses.
Apart from the regular fulfillment fees, Amazon FBA also has a disposal fee. Amazon FBA charges a disposal fee when you remove an item from the inventory permanently. The seller has to pay disposal for each item they wish to dispose of. In simpler words, Amazon FBA charges the disposal fee on a per-item basis.
Before you plunge into Amazon FBA services, it is also essential to consider the tax rate. Any seller should be aware that Amazon charges 2.9% of each transaction as sales tax. However, the tax rate will vary from one country to another depending on their tax rules and regulations.
The Bottom Line
Fulfillment by Amazon is one of the best programs that can give a tremendous boost to your business. It is worth mentioning that the fulfillment rates are pretty competitive. Often, you’d find them to be more affordable than a third-party logistics partner.
Running your calculations before selecting a fulfillment service would help you make the best decisions for your business. Additionally, you can also contact Amazon's representatives to understand the Amazon FBA fees better.
Don’t forget to consider the other fees involving Amazon FBA before making your decision. Please pay close attention to these fees as they are crucial for your e-commerce business.
Now that you are aware of Amazon FBA fees, you can decide which solution is best for your business.
