Amazon FBA Fees: How Much Does It Cost To Sell With Amazon?
Thinking about using Fulfillment by Amazon (FBA) to streamline your Amazon business?
While FBA offers a convenient way to store and ship your products, it’s crucial to understand the associated costs before diving in.
In this blog post, we will provide a transparent breakdown of the key FBA fees you’ll encounter, helping you make informed decisions about your Amazon selling strategy. We’ll explore fulfillment fees, storage fees, and other potential expenses, so you can accurately calculate your profit margins and determine if FBA is the right fit for your business.
What is Amazon FBA?
FBA, which stands for Fulfillment by Amazon, is a service offered by Amazon to its third-party sellers. It essentially acts as an outsourced fulfillment center for your products. Here’s the gist:
- You send your products to Amazon’s warehouses.
- Amazon stores your inventory.
- When a customer orders your product, Amazon picks, packs, and ships it to the customer.
- Amazon can also handle customer service and returns for you.
So, by using FBA, you basically hand off the storage, shipping, and some customer service tasks to Amazon, allowing you to focus on sourcing products, marketing, and growing your sales.
What are Amazon FBA Fees?
Now that we understand how FBA works, let’s delve into the nitty-gritty: the fees. There are several costs associated with using Amazon FBA, and understanding them is essential for calculating your profit margins and deciding if FBA is the best option for you. Here’s a quick breakdown of the main FBA fees:
Referral Fees
Before we completely dive into the FBA fee structure, there’s another important cost to consider: referral fees. This is essentially the commission Amazon takes for each sale you make through their platform. It’s a separate fee from FBA, but it’s a crucial part of understanding your overall Amazon selling costs.
Referral fees are a percentage of the total sales price (including shipping) of your product. The exact percentage varies depending on the product category you’re selling in. Some categories have lower referral fees (around 8%), while others can be as high as 45%.
Here’s a breakdown of Referral fees for different product categories-
| Product Category | Referral Fee |
|---|---|
| Automotive and Powersports | 12% |
| Baby Products | 8% on a sale price of $10 and 15% on sales greater than $10. |
| Backpacks, Luggage, Handbags | 15% |
| Amazon Device Accessories | 45% |
| Clothing and Accessories | 17% |
| Personal Care, Beauty, and Health | 8% for a sale price of $10 or less and 15% for sales greater than $10. |
| Footwear | 15% |
| Furniture | 15% for a total sales price of $200 and 10% for any portion of SP over $200. |
| Office Items | 15% |
| Pet Products | 15% for general and 22% for veterinary diets |
| Gaming Accessories | 15% |
| Home Improvement Tools | 15% |
| Furniture | 15% for sale price up to $200 and 10% for S.P. greater than $200. |
| Jewellery | 20% for S.P. up to $250 and 5% for any portion of SP greater than $250. |
| Garden and Lawn Products | 15% |
| Home and Kitchen | 15% |
| Grocery Items | 8% for total S.P. of $10 and 15% for SP over $15. |
| Toys and Games | 15% |
| Amazon Explore | 30% |
| Base Equipment Power Tools | 12% |
| Business or Industrial Supplies | 12% |
| Full Sized Appliances | 8% |
| Gift Cards | 20% |
| Mowers and Throwers | 15% for a total SP of $500 and 8% for an SP above $500. |
| Media – DVD, Music, Software, Video | 15% |
| Sports and Outdoors | 15% |
| Tires | 10% |
| Video Game Consoles | 8% |
| Watches | 16% for SP up to $1500 and 3% for any portion of SP above $1500. |
| Consumer Electronics | 8% |
| Computers | 8% |
| Compact Appliances | 15% for a total SP of $300 and 8% for any portion of SP above $300. |
| Eyewear | 15% |
| Entertainment Collectibles | 20% for the portion of total sales price up to $100.00, 10% for the portion of total sales price greater than $100.00, up to $1,000.00, and 6% for the portion of total sales price greater than $1,000.00 |
| Electronic Accessories | 15% for the portion of the total sales price up to $100.00, and 8% for any portion of the total sales price greater than $100.00 |
| Sports Collectibles | 15% for the portion of the total sales price up to $100.00 10% for any portion of the total sales price greater than $100.00 up to $1,000.00 6% for any portion of the total sales price greater than $1,000.00 |
| Musical Instruments and AV Production | 15% |
| Everything Else | 15% |
| Collectible Coins | 15% for the portion of the total sales price up to $250.00, 10% for any portion of the total sales price greater than $250.00 up to $1,000.00, and 6% for any portion of the total sales price greater than $1,000.00. |
| Fine Art | 20% for the portion of the total sales price up to $100.00, 15% for the portion of the total sales price greater than $100.00 up to $1,000.00, 10% for the portion of the total sales price greater than $1,000.00 up to $5,000.00, and 5% for the portion of the total sales price greater than $5,000.00. |
Fulfillment Fees
The amounts sellers pay to Amazon for picking, packing, and shipping their orders are called FBA fulfillment fees. Unlike referral fees, which apply to all Amazon sales, FBA is an optional service. While you can fulfill orders yourself, FBA offers significant convenience, especially as your business grows. It frees you from the time-consuming tasks of packing bulk orders and managing customer inquiries related to shipping, allowing you to focus on growing your business.
These Fulfillment Costs are based on the size and weight (including packaging) of the products. FBA divides them into six shipping weight tiers: Small Standard, Large Standard, Small Oversize, Medium Oversize, Large Oversize, and Special Oversize. Additionally, fulfillment fees can vary slightly depending on the product category. We’ll explore the breakdown of fulfillment fees in more detail next.
Fulfillment fee for Apparel
Fulfillment fee for Dangerous Goods
Monthly Inventory Storage Fees
When you store your products in Amazon fulfillment centers (FCs) using FBA, you’ll incur monthly storage fees. These fees are based on two key factors:
- Storage volume: The amount of space your products occupy in cubic feet (cu. ft.) in Amazon’s warehouses.
- Time of storage: Storage fees can be higher during peak season (October to December) due to increased demand for warehouse space.
By understanding these factors, you can better estimate your storage costs and potentially optimize your inventory management strategy.
In the next section, we’ll explore how these factors influence the actual storage fee rates.
What are other types of Fees associated with Amazon FBA?
While FBA fulfillment fees, storage fees, and referral fees are the main costs associated with Fulfillment by Amazon, there are other charges to be aware of when calculating your overall selling expenses on Amazon. Let’s explore these additional fees:
1. Subscription Fee
Whether you are an FBM seller or FBA, the subscription fee is the basic fee that every seller has to pay. To become an Amazon seller, one has to choose a plan from the two options below:
There are two main Amazon seller account plans:
- Individual Selling Plan: This plan has no monthly subscription fee, but you pay a per-item fee ($0.99 as of June 2024) for each item sold. This can be cost-effective for sellers with low sales volume.
- Professional Selling Plan: This plan requires a monthly subscription fee ($39.99 as of June 2024) but eliminates the per-item fee. It’s ideal for sellers with higher sales volume or who want access to additional selling features.
2. Refund Administration Fee
When you process a customer refund, Amazon will credit you back the referral fee you paid on the sale. However, they deduct a small fee to cover administrative costs associated with the refund. This fee is either a flat $5 or 20% of the original referral fee, whichever is lower.
3. Closing Fees
Media products like books, music, DVDs, software, and video game consoles incur a closing fee per unit sold. This fee is typically around $1.80 (as of June 2024).
4. FBA Aged Inventory Surcharge fee
This fee, previously known as long-term storage fees, applies to inventory that remains unsold for an extended period (over 181 days) in Amazon fulfillment centers. The fee is assessed per unit on the unsold items. This incentivizes sellers to manage their inventory effectively and avoid stockpiling slow-moving products.
5. Returns Processing Fee
When a customer returns a product, you’ll incur a returns processing fee. This fee varies based on the size and weight of the returned item. As of June 2024, Amazon has added a return processing fee for high-return rate products, excluding apparel and shoes.
6. Inventory Removal and disposal fees
If you need to remove items from your inventory due to damage, expiration, or other reasons, you’ll be charged inventory removal and disposal fees. These fees vary depending on the size, weight, and standard/oversized classification of the removed items.
7. Low Inventory-level fee
A recent addition to the fee structure, the low-inventory level fee penalizes sellers who consistently fail to maintain sufficient stock in Amazon fulfillment centers. This can lead to delays in order fulfillment and increased shipping costs for Amazon. Maintaining at least a four-week supply of inventory can help avoid this fee.
8. FBA inbound placement service fee
Introduced in March 2024, this fee applies to FBA sellers who utilize split shipments for faster order fulfillment. Split shipments involve distributing your inventory across different fulfillment centers closer to your customers. The inbound placement service fee applies to standard-sized and large/bulky products after 45 days of them being received by Amazon.
9. High-volume listing fees
Sellers with a large product inventory exceeding 100,000 units on Amazon will incur high-volume listing fees. This fee is a small charge (0.005 cents per month, as of June 2024) applied to each additional item listed beyond the 100,000 limit.
10. Rental book Service fees
If you sell books through Amazon’s Rental Book Service, you’ll be charged a fee per rental transaction (typically $5) after the rental is completed. There’s no upfront cost for this service.
How to calculate your overall selling fees on Amazon FBA?
The Amazon FBA revenue calculator can be a helpful tool for getting a quick estimate of your total selling fees. You can access it within Seller Central by searching for it. Once you find it, simply provide the ASIN (unique product identifier) of the item you’re interested in.
The calculator will then retrieve product details and might prompt you for additional information like estimated sales volume and storage needs. After filling in all the relevant details, click “Calculate” to get an estimated breakdown of Amazon fees, including referral fees, FBA fulfillment fees, and potential storage fees.
How to deal with high Amazon FBA Fees?
High Amazon FBA fees are a common concern for sellers. But fear not! Here are some effective strategies to minimize or even avoid them altogether:
1. Prioritize Profitable Products:
Focus on products with a minimum profit margin of 40% after factoring in FBA fees. Consider the product’s weight, size, and category during selection. This ensures you can comfortably invest in FBA and grow your business.
2. Price Optimization is Key:
Focus on products with a minimum profit margin of 40% after factoring in FBA fees. Consider the product’s weight, size, and category during selection. This ensures you can comfortably invest in FBA and grow your business.
3. Manage Inventory Levels Wisely:
Maintaining optimal inventory levels is key to avoiding expensive storage fees associated with low stock. By strategically managing your inventory, you can save money and keep your business running smoothly.
4. Conquer Dimensional Weight:
Remember, the higher the dimensional weight of your product, the higher the fulfillment costs. To reduce it, consider using compact packaging, bundling similar products together, and modifying product dimensions if feasible.
5. Monitor Performance Like a Hawk:
Keep a close eye on your profits, pricing, and overall performance. Utilize the Amazon FBA calculator for necessary calculations and leverage analytics tools to track expenses effectively.
By implementing these strategies, you can significantly reduce the impact of FBA fees on your business, allowing you to focus on growth and profitability.
Conclusion
While Amazon FBA offers undeniable convenience and potential for growth, understanding the associated fees is crucial for success. By carefully considering referral fees, fulfillment costs, and storage charges, you can make informed decisions about product selection, pricing strategy, and inventory management.
Turning your bookshelf into a source of income has never been easier, thanks to Amazon. If you have books collecting […]
If you’re an Amazon seller, encountering an account suspension or policy violation can be a significant setback. But with the […]
Introduction Amazon dropshipping is an increasingly popular way to run an e-commerce business without the need to store or ship […]
Introduction The Amazon Influencer Program is a great way for content creators to turn their influence into earnings. This program […]
Introduction Amazon Kindle Direct Publishing (KDP) is a platform that allows authors to self-publish their work as ebooks or print […]
Selling on Amazon offers many opportunities for businesses, but it’s essential to understand the costs involved with Fulfillment by Amazon […]
Walmart is quickly becoming a popular platform for brands and sellers to connect with more customers. One way to boost […]
In today’s competitive retail landscape, reaching the right audience at the right time is crucial for success. Walmart’s Demand Side […]
In today’s fast-paced eCommerce landscape, shoppers demand speedy delivery. Walmart has responded by offering 2-day shipping, giving sellers on the […]
Running successful Walmart advertising campaigns takes more than just setting them up—it requires ongoing optimization. A Walmart PPC (Pay-Per-Click) audit […]
Are you ready to tap into the massive potential of Walmart Marketplace? With millions of daily visitors and a loyal […]
In the world of e-commerce, Amazon and Walmart reign supreme, dominating the retail landscape. These two giants offer vast opportunities […]
Are you a brand owner struggling to maintain control over your products on Walmart? The Walmart Brand Portal is here […]
Are you dreaming of a passive income stream from your Walmart store? The allure of an automated Walmart store with […]
Are you a seller looking to tap into the massive market of private-label brands? Walmart, one of the world’s largest […]
Tired of your Walmart products getting lost in the shuffle? In this blog post, we’ll dive into the essential strategies […]
Ever wondered why some Amazon sellers seem to have a magic touch with product bundles? It’s not luck—it’s strategy. Bundling […]
If you’re a Walmart seller looking to grow your business through retail media, Walmart Connect could be a game-changer. But […]
If you’re an Amazon seller, you may have noticed a portion of your inventory marked as “reserved” without knowing exactly […]
Have you ever wondered what managing your own Amazon orders is like? Switching from Fulfilled by Amazon (FBA) to Fulfilled […]
Walmart Marketplace offers an exciting opportunity for sellers to reach a vast audience by listing their products on Walmart’s platform. […]
Selling products on online marketplaces has become a vital strategy for businesses to reach more customers. If you’re looking to […]
Are you a Walmart seller aiming to improve your visibility and sales? In this blog, we will explore Walmart SEO, […]
As an Amazon brand owner, maintaining control over your product listings is essential to protect your brand’s reputation and customer […]
Introduction​ Tired of losing out on Walmart sales to competitors? Want to know the secret to consistently winning the Buy […]
Are you an Amazon seller struggling to increase your rating? A high seller rating is crucial for attracting new customers […]
As an Amazon seller, providing the best customer service is paramount to maintaining a positive customer experience. One key metric […]
Are you an Amazon seller wondering what the IPI score is and how it affects your business? Look no further! […]
Introduction Starting an Amazon subscription box business presents a unique opportunity to tap into the growing trend of curated, recurring […]
Thinking about using Fulfillment by Amazon (FBA) to sell on the Amazon marketplace? Awesome! But before you box up your […]
Thinking about using Fulfillment by Amazon (FBA) to streamline your Amazon business? While FBA offers a convenient way to store […]
For FBA sellers, the Amazon Buy Box is the holy grail of product visibility. But with constant algorithm updates and […]
Have you ever wished you could offer customers pre-made packages of complementary products without the hassle of physically bundling them […]
Have you ever wanted to create a more branded and engaging presence for your products on Amazon? An Amazon storefront […]
Are you storing items on Amazon for a while? If so, it’s important to be aware of Amazon’s long-term storage […]
When selling products on Amazon, it is crucial to follow their packaging requirements, rules, and guidelines. Proper packaging ensures that […]
A/B testing on Amazon can significantly enhance your product listings and boost sales. This method, also known as split testing, […]
Have you ever browsed Amazon and stumbled upon a product with a little blue badge that reads “Amazon’s Choice”? It […]
Introduction Selling on Amazon can be a great way to get your products out there. But once someone buys your […]
Ever feel like you’re missing something in your Amazon PPC Search Terms report? You might be! Sure, they show what […]
Amazon can be a fantastic platform to reach new customers, but keeping your virtual shelves stocked can get tricky. That’s […]
Navigating Amazon as a new seller can be tough, but there are tools and programs available to help. Amazon’s Launchpad […]
Have you ever scrolled through an Amazon search result page and noticed product recommendations nestled alongside the standard listings? These […]
Finding time for yourself while selling on a competitive marketplace like Amazon can be challenging. As a seller, your main […]
Starting an E-commerce business has become quite easy with Amazon, but it also brings heavy competition. Millions of Amazon sellers […]
As an Amazon seller, you know the importance of getting your products seen. But with millions of listings, how do […]
Ever scrutinized an Amazon product page and noticed the cryptic “Sales Rank”? Wondering what it means and how it impacts […]
Millions of products compete for customer attention on Amazon’s search results page, making it tough for your brand to stand […]
Are you selling products on Amazon and looking to increase your sales? This blog is for you. We’ll share tips […]
Are you an Amazon seller looking to boost your brand visibility and profitability? Are you feeling stuck in the cycle […]
Ever wonder what drives your online shopping habits? Perhaps a captivating product description, or an eye-catching professional photo? As it […]
For any seller on Amazon, understanding the A9 algorithm is crucial for success. This complex algorithm dictates which products appear […]
Are you an Amazon seller looking to turn those single purchases into recurring revenue? Look no further than the Subscribe […]
Amazon has become a go-to platform for all e-commerce business owners to launch and scale their e-commerce brands online. But […]
Mother’s Day, a time to celebrate the incredible women who raised us, is a prime opportunity for Amazon sellers to […]
In the ever-competitive landscape of Amazon, ranking high in organic search results is crucial for driving sales. While you might […]
If you’ve ever found yourself scratching your head over Sessions and Pageviews on your Amazon business reports, you’re not alone. At […]
Amazon is a massive marketplace, attracting millions of customers with diverse needs, preferences, budgets, and mindsets for shopping. To effectively […]
With Amazon boasting over $575 billion in retail sales for 2023, it’s no wonder so many sellers flock to its […]
Advertising on Amazon through pay-per-click campaigns can significantly enhance product visibility and sales for sellers. However, mastering Amazon PPC, with […]
Have you heard of the terms copyright infringement and plagiarism? If so, then Amazon Brand gating won’t be unfamiliar to […]
If you are running ads on Amazon, you’ll come across a sea of data in your advertising console. But does […]
Have you heard of the terms copyright infringement and plagiarism? If so, then Amazon Brand gating won’t be unfamiliar to […]
In the fast-paced world of e-commerce, where shoppers are bombarded with choices, standing out on platforms like Amazon is paramount […]
Are you planning to start an Amazon FBA store? If so, you’ll encounter a unique term – FNSKU. This seemingly […]
Introduction As an Amazon seller, you understand the power of reviews. They’re the lifeblood of trust and conversion on the […]
Are you struggling to get Amazon reviews on your product? Well, you are not alone! Reviews are the backbone of […]
Are you tired of bland Amazon product listings failing to grab attention? In today’s competitive online marketplace, standing out is […]
As an Amazon seller, understanding how your brand performs throughout the customer journey is vital for success. However, until recently, […]
As an Amazon seller, optimizing your business and maximizing profits relies heavily on data analysis. One invaluable tool for gaining […]
Are you struggling to get noticed on Amazon’s massive platform? Do your products get lost in a sea of similar […]
For any Amazon seller getting into the world of sponsored advertising, understanding the Advertising Cost of Sale (ACoS) is crucial. […]
A well-executed product launch on Amazon can be the key to unlocking success and gaining a competitive edge. As the […]
In the ever-evolving landscape of e-commerce, distinguishing between keywords and search terms is vital for optimizing product visibility and driving […]
Ever felt like you are throwing darts in the dark when it comes to your marketing efforts outside Amazon for […]
Amazon, the e-commerce giant, has successfully concluded a robust business year with outstanding performance in quarter 4. The most recent […]
Picture this: you have a great product on Amazon, but it’s not selling well despite having attractive images and a […]
The advertising landscape is evolving, and viewers are rapidly migrating from traditional cable TV to streaming platforms. This presents a […]
Feeling lost in the Amazon discount jungle? Struggling to reach the right customers and entice them to make the purchase? […]
Are you losing your product in the deep ocean of Amazon product listings? Want your product to stand out, rank […]
For years, Amazon sellers were in the dark. They couldn’t see what keywords customers were using to find their products, […]
Selling on Amazon can be tough with so many others doing the same in your category. That’s why it’s super […]
For Amazon sellers, understanding their customers has often felt like navigating a maze without a map. The missing link? A […]
Have you ever felt like your Amazon advertising campaigns are lost in a tangled jungle of keywords? You’re not alone. […]
When did you last give your Amazon PPC account a checkup? Regular Amazon PPC audits are crucial to ensure the […]
Embarking on the path of online selling? If so, you’re likely aware that Amazon is your ultimate destination. With a […]
Ever felt like your product is lost in the vast Amazon jungle? You’re not alone. With millions of shoppers actively […]
Amazon Sellers selling on the Amazon marketplace usually utilize Amazon advertising without keeping a close eye on the TACoS metric. […]
The rush of Black Friday and Cyber Monday might be over, but the opportunity for continued sales growth extends beyond […]
In the fierce Amazon advertising domain, where competition rises and costs increase, understanding and keeping track of the right metrics […]
Have you ever felt the frustration of campaigns going out of budget, leading to missing out on potential sales, or, […]
Amazon PPC campaigns can be a powerful tool for driving traffic and sales to your products. However, without proper structure, they […]
Whether you are creating a new advertising campaign or optimizing existing ones, doing it manually from the Amazon ad console […]
Want to know what search terms people use to visit or purchase your product on Amazon? If yes, you’re in […]
When you are spending dollars or even more to get a click on your Amazon ads, you want to ensure […]
Are you an Amazon seller looking to maximize your profits and minimize your advertising costs? If so, you’re not alone. Many […]
Are you exclusively relying on traditional metrics such as CTR, CPC, CVR, or ROAS to make your campaign optimization decisions? […]
Navigating the ever-evolving landscape of Amazon’s online marketplace is essential for any seller looking to thrive on the platform. Among […]
As the holiday season approaches, businesses are gearing up for the highly anticipated Q4 rush. To ensure a successful Q4, […]
Do you regularly review your Amazon advertising reports? If not, you may be missing out on numerous opportunities. Amazon […]
Whether you’ve just launched a new product or have been selling on Amazon for a while, advertising on the platform […]
Amazon PPCÂ bidding strategies that you choose play a significant role in the success of your Amazon Ads campaigns. As […]
Have you ever heard of a “catch-all campaign”? This single campaign can generate extra sales for you at a very […]
Amazon Prime Day is one of the largest global e-commerce sales events, attracting millions of customers worldwide. But how do […]
Are you looking to boost your brand’s visibility and drive more sales on Amazon? Look no further than Amazon Sponsored […]
Succeeding on Amazon in 2023 isn’t easy. Just listing your products and hoping for the best won’t work anymore. You […]
Are you bidding the same amount for all your ad placements on Amazon? If yes, then you’re missing out on […]
Whether you are looking to boost product discovery or target audiences further down the sales funnel who have already engaged […]
We, at Adbrew catalyze millions of dollars of ad spend monthly through our platform, with Sponsored Product Ads being […]
Do you want to know how many clicks you should give a search term before adding it as negative in […]
Think of your product listing as a guiding light on the Amazon marketplace. It’s your chance to grab attention, tell […]
It is no longer a secret that shopping behavior on Amazon varies over the day. This is the reason why […]
Are you struggling to get the most out of your advertising budget on Amazon? Do you find that your campaigns […]
Ever run an Amazon Ad campaign and wondered why some sales weren’t directly linked to the products you advertised? That’s […]
If you’re managing Amazon PPC ads, it’s essential to have an effective and organized approach for target harvesting and movement. […]