Article last updated 06.13.2022
Quick Introduction to FBA
(Skip if you just want to get to the breakdown of the fees)
Fulfillment by Amazon or FBA is Amazon’s primary logistics solution for sellers on their platform. Sellers that use Amazon can delegate packing, shipping, customer service, and everything in between to Amazon’s specialists. This also includes storage and inventory keeping of goods.
Leveraging Amazon’s fulfillment service brings ease to Amazon’s partners in handling and managing logistics.
Sellers partnered with Amazon also gain additional perks like getting items listed on Amazon Prime offers. Amazon’s search results usually show Prime listings first; this allows for better product visibility.
Amazon FBA Costs and Fees
Amazon FBA costs vary based on the item type, dimensions, shipping weight. Regardless of the amount, the fees incurred by sellers include every step of the fulfillment process.
Fulfillment by Amazon categorizes the dimensional weight of items as either Standard or Oversized.
Starting April 20, 2022 amazon implemented a new 5% fuel and inflation surcharge for all FBA fulfillment fees.
Standard Sized Fulfillment Fees
Under standard-sized items, FBA further subcategories products as either apparel or non-apparel.
For apparel items, the fees go as low as $3.43 for items that weigh 6 oz or less. Larger apparel items weighing 3+ lb to 20 lb cost $7.01 + $0.32/lb above first 3 lb.
Non-apparel items, on the other hand, are priced slightly lower. Pricing begins at $3.07 for items under 6 oz or less , while those weighing 3+ lb to 20 lb cost $6.44 + $0.32/lb above first 3 lb
Oversized Items Fulfillment Fees
Amazon classifies items as oversized when the dimensions exceed 70 lb or less. Oversized items fall into different subcategories; they are either small, medium, large, or special oversize.
For non-apparel goods that fall under small oversize have a shipping weight of 70 lbs or less. It would cost a seller $9.39 for the first lb and an additional $0.40 per pound above the first lb.
When items weigh 150 lb or less, it falls under medium oversize. Likewise, items that weigh less than 71 lbs but exceed 60 inches on its longest side are also considered medium oversize.
Fulfillment for medium oversize is at $13.37 for the first lb and $0.46 per pound over the first lb.
Large oversize follows the same weight bracket as medium oversize150 lb or less. The main difference falls in the dimensions of the item to be shipped.
Goods that are more than 60 inches on the longest side classify as large oversize.
The starting pricing of large oversized is considerably higher than small and medium parcels. Rates begin at $86.71, with $0.83 per pound on top of the first 90 lbs.
Large packages that exceed a length of 108 inches on the long end would fall under special oversized.
Special oversized items cost $150.49 to ship for the first 90 lbs. Sellers pay for $0.83 per pound over the starting 90 lbs.
For apparel the cost are different, for small oversize the shipping weight is 70 lb or less and the fulfillment fee per unit is $9.39 + $0.40/lb above first lb. For medium and large oversize the shipping weight is the same 150 lb or less, the fees for medium oversized items is $13.37 + $0.46/lb above first lb and for large oversize is $86.71 + $0.83/lb above first 90 lb. Special oversize should weight over 150 l and the fees start at $158.49 + $0.83/lb above first 90 lb
Refer to the tables below for the pricing brackets for all products. These fees already include the 5% surcharge added on April 28, 2022
FBA FEES FOR Most products (non-dangerous goods)
FBA FEES FOR Apparel
Dangerous Goods Fees
In certain instances, Amazon can classify items as dangerous goods, regardless if it isn’t what is traditionally known as one. Some household products such as laptops, phones, cleaners may have content that FBA would consider hazardous.
Such items could be classified if they are flammable, corrosive, pressurized, or pose any health risk and damages while transporting.
Items classified as dangerous have higher fulfillment fees due to the added cost of handling them.
For small standard size the shipping weight starts at 6 oz to 16 oz and rates start at $4.04 and go up to $4.37, For large standard items shipping weight starts at 6 oz and goes up to 20 lbs, rates start at $4.50 to $6.90 + $0.32/lb above the first 3 lb. Oversized items start at 70 lbs and go over 150lbs, oversized item rates start at $10.14 and go up to $179.28
A table below lists a breakdown of pricing for dangerous goods.
Here you can see all the details about product size tiers.
Small standard size
Any packaged item that is 16 oz or less with its longest side 15 inches or less, its shortest side 0.75 inch or less, and its median side 12 inches or less.
Large standard size
Any packaged item that is 20 lb or less with its longest side 18 inches or less, its shortest side 8 inches or less, and its median side 14 inches or less.
Small oversize
Any packaged unit that is 70 lb or less with its longest side 60 inches or less, its median side 30 inches or less, and its longest side plus girth 130 inches or less.
Medium oversize
Any packaged unit that is 150 lb or less with its longest side 108 inches or less and its longest side plus girth 130 inches or less.
Large oversize
Any packaged unit that is 150 lb or less with its longest side 108 inches or less and its longest side plus girth 165 inches or less.
Special oversize
Any packaged unit that exceeds one or more of the following: over 150 lb (unit weight or dimensional weight), over 108 inches on its longest side, or over 165 inches when the longest side is added to the girth. In addition, products that we determine require special handling or delivery will be designated as special oversize.
Fees Worth Considering
Inventory Fees
For some businesses, it isn’t uncommon to outsource storage and inventory. Having a third-party solution for warehousing allows for better scalability. Outsourcing rids a seller of costs on employing inventory staff and space leasing.
In areas with high real-estate value (think NYC), an outsourced warehouse eases the upkeep costs of a seller.
Amazon charges sellers a monthly inventory storage fee ranging from $0.83-$3.63 per cubic foot.
Long-term storage fees
Inventory that has been in a fulfillment center for more than 365 days is charged a monthly long-term storage fee in addition to the monthly inventory storage fee. Storing the items cost $6.90 per cubic foot or $0.15, favoring whichever is greater.
Fee Examples
It is a seller’s responsibility to track inventory on their end to avoid incurring extra fees. To track your long storage fees use the Manage Inventory Health report and the Recommended Removal report
FBA Removal and Disposal Order fees
Another way of avoiding excessive fees is to pay for inventory removal. Returning the item to a seller costs $0.52 to $7.25 per unit, depending on size.
Product Return Fees
Sellers shoulder an additional fee when customers decide to return items. Returns prove to be costly as there are charges for shipping and a returns processing fee.
When a customer fulfills an item return, the seller pays for the shipping costs.
For items like apparel, watches, jewelry, shoes, handbags, sunglasses, and luggage, Amazon Amazon do not charge returns processing fees
The returns processing fee is equivalent to the original fulfillment fee.For example if a custom returns a t-shirt with a shipping weight of 6.1 ounces. you will be charged a returns processing fee of $2.23.
Use the size tier of your product to determine which rate card applies.
Amazon FBA Export Fees
Consumer convenience is critical in selling platforms. Amazon ensures its buyers around the world that products are to reach their doorsteps.
Amazon FBA gives sellers the ease of exporting their products to a host of countries. Pricing varies depending on the item’s country of destination. The best practice is to check with Amazon’s seller central to see the rates.
Only Standard-Size1 Units are eligible for FBA Export. Oversize Units cannot be exported.
- FBA Export (through Amazon):For international orders on Amazon there are no additional fees. Standard-Size Media order fulfillment fees apply.
- FBA Export (Multi-Channel Fulfillment): For international orders through Multi-Channel Fulfillment, use the following table to determine the cost of fulfillment.
Learn more about FBA Export.
Package Prep Fees
If packaging proves to be a laborious task of your selling process, Amazon FBA can do it for you. There are additional fees, but it is your discretion as a seller to compute if this is a budget-efficient route for you.
Depending on how frequent you incur penalty fees or the scale of your business, package prep fees can either be beneficial or just a high cost.
Small and Light Fees
To enroll in the Small and Light program, your new products need to be 18 x 14 x 8 inches or less, weigh 3 pounds or less, and be priced at $10 or less.
If you compare these fees with the regular fees, there is a great discount. For example, for small products 6 oz or less, the FBA fees are $3.07 and with the Small and Light discount the new fee will be $2.35. This is a discount of $0.72 which is a lot for a product that will sell for $10 or less.
Conclusion – Consider All Fees!
Amazon FBA is a promising logistics solution regardless of the business scale. Having a proven partner handling logistics allows sellers to focus more on growing their sales.
The burden eased by Amazon FBA is something to consider. But as mentioned earlier, due diligence is still vital for a business to succeed.
A responsible seller should always factor in the FBA fees to determine the best margins. In addition, sellers should run cost analysis for using different fulfillment services.
Lastly, it’s crucial to efficiently move your items. Whether it’s perfectly labeled so you don’t incur extra fees for labeling services or you having to optimize your product page so you don’t have to pay for long term storage, you need to be efficient.
If you want to double check your math, you may get in touch with us at BellaVix to talk about your process and your pricing.
All pricing tables data derived from Amazon (Last Updated June 13, 2022)
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