Fulfillment by Amazon FBA Fees: Everything You Need To Know

0
138

Fulfillment by Amazon (FBA) has always played a vital role in the massive Amazon’s development over the past decades. FBA is not a new concept, as many enterprises have been using it successfully. Before joining any market, one of the most crucial factors to consider is expense. So, if you’re thinking about using FBA services but aren’t sure how much budget you’ll need to invest, this blog will give you all the information you need about FBA fees.

Hopefully, it will help you to determine if FBA is appropriate for you. And now it’s time to get started!

1. Fulfillment fee

FBA fee – a service fee paid to Amazon to process an order when a buyer places an order from its platform. This cost is calculated on a per-product basis and varies depending on your category, size, and weight. The fulfillment fee will cover the entire cost of picking, packing, and shipping.

a. Rate cards:

Standard-size product tiers

Product type

Size tier

Weight

Fulfillment fee per unit

Most products (non-dangerous, non-apparel)

Small standard

6 oz or less

$2.70

6+ to 12 oz

$2.84

12+ to 16 oz

$3.32

Large standard

6 oz or less

$3.47

6+ to 12 oz

$3.64

12+ to 16 oz

$4.25

1+ to 2 lb

$4.95

2+ to 3 lb

$5.68

3+ lb to 20 lb

$5.68 + $0.30/lb above first 3 lb

Apparel

Small standard

6 oz or less

$3.00

6+ to 12 oz

$3.14

12+ to 16 oz

$3.62

Large standard

6 oz or less

$3.87

6+ to 12 oz

$4.04

12+ to 16 oz

$4.65

1+ to 2 lb

$5.35

2+ 3 lb

$6.08

3+ lb to 20 lb

$6.08 + $0.30/lb above first 3 lb

Dangerous goods

Small Standard

6 oz or less

$3.63

6+ to 12 oz

$3.85

12+ to 16 oz

$3.89

Large Standard

6 oz or less

$4.22

6+ up to 12 oz

$4.39

12+ to 16 oz

$4.82

1+ to 2 lb

$5.52

2+ to 3 lb

$6.12

3+ lb to 20 lb

$6.12 + $0.30/lb above first 3 lb

Oversized Products

Product type

Size

Shipping weight

Fulfillment fee per unit

Non-dangerous goods (both apparel and non-apparel)

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

Dangerous goods (both apparel and non-apparel)

Small Oversize

70 lb or less

$9.38 + $0.38/lb above first lb

Medium Oversize

150 lb or less

$12.20 + $0.39/lb above first lb

Large Oversize

150 lb or less

$87.93 + $0.79/lb above first 90 lbs

Special Oversize

Over 150 lb

$157.91 + $0.79/lb above first 90 lbs

b. Example:

Large Standard Size (garments, 12+ to 16 oz)

T-shirt

Dimension: 14 x 10 x 0.76 inches

Unit weight: 12.32 oz

Shipping weight: 12.32 oz

Fulfillment fee (per unit)

Large standard garment sizes with a shipping weight greater than 12 ounces and less than 16 ounces: $4.65

2. Long-term Storage Fee

An item that has been stored in the fulfillment center for more than 365 days will be charged long-term storage by month in addition to the monthly storage fee. 

a. Fee details 

Time of chargeMonthly, usually 18th and 22nd day of each month
Fee structurePer unit stored. Fees are based on unit volume or per unit, whichever is greater.
Amount$6.90 per cubic foot or $0.15 per unit, whichever is greater

b. How to Determine Inventory Charges

You can use Inventory Condition Management to determine which ASINs are required charges for long-term storage, including 60-day ASINs. On the Manage Inventory Health, you can locate and filter their inventory by how long it has been in the fulfillment center (FC).

  • 0 – 60 days
  • 61 – 90 days
  • 91 – 180 days
  • 181 – 330 days
  • 331 – 365 days
  • More than 365 days

This data can assist you in estimating how many items will be stored in fulfillment centers (FC) for more than 365 days on the next inventory liquidation date.

c. Fee examples:

Toy: 11 x 8 x 2 inchesStorage durationApplicable cubic-foot feeApplicable per-unit feeBilled long-term storage fee (the greater of the two)
1 unitMore than 365 days$0.70$0.15$0.70
2 unitsMore than 365 days$1.41$0.30$1.41
10 unitsMore than 365 days$7.03$1.50$7.03
Book: 8 x 6 x 0.5 inchesStorage durationApplicable cubic-foot feeApplicable per-unit feeBilled long-term storage fee (the greater of the two)
1 unitMore than 365 days$0.10$0.15$0.15
2 unitsMore than 365 days$0.19$0.30$0.30
10 unitsMore than 365 days$0.96$1.50$1.50

3. Monthly Inventory Storage Fee

Amazon charges a monthly storage fee based on the amount of space your products take up in their warehouse in cubic feet, in addition to long-term storage fees. As indicated below, items are divided into two categories: non-dangerous goods and dangerous goods, with different price regulations.

a. Fee Details:

Collection PeriodMonthly, usually on the 7th to 15th day of the month, in the following month when charges are incurred.
Fee StructureBased on your average daily storage space at fulfillment centers, per storage utilization. Prices are determined by the product type, size class, and date of year.

b. Detailed Fee Sheet:

Non-dangerous Goods 

Months

Standard Size

Oversize

January – September

$0.75/cubic foot

$0.48/cubic foot

October – December

$2.40/cubic foot

$1.20/cubic foot

Dangerous Goods

Month

Standard Size

Oversize

January – September

$0.99/cubic foot

$0.78/cubic foot

October – December

$3.63/cubic foot

$2.43/cubic foot

4. Return Fee

The return charge for Apparel & Footwear products is determined per product. Return fees will not apply to products in the Watches, Jewelry, Luggage, Bags, and Sunglasses category.

a. Fee details: 

Time of chargeWhen the assessment of the item’s condition is complete, which occurs after the item is returned to Amazon’s fulfillment center.
Fee structurePer unit returned. Rate based on product size tier

b. Rate cards:

Size tier

Shipping weight

Return processing fee

Small standard

6 oz or less

$2.12

6+ to 12 oz

$2.23

12+ to 16 oz

$2.32

Large standard

6 oz or less

$2.40

6+ to 12 oz

$2.76

12+ to 16 oz

$2.85

1+ to 2 lb

$2.96

2+ to 3 lb

$3.41

3+ lb to 20 lb

$3.41 + $0.20/lb above first 3 lb

Oversize

Small oversize

$4.19 + $0.20/lb above first 2 lb

Medium oversize

$10.57 + $0.25/lb above first 2 lb

Large oversize

$43.70 + $0.25/lb above first 90 lb

Special oversize

$75.08 + $0.25/lb above first 90 lb 

c. Fee example:

The example is a t-shirt with an outbound shipping weight of 6.1 ounces. If the customer decides to return this item, you will be charged a returns processing fee of $2.23.

5. FBA disposal order fees

Disposal fees are charged per item when you request that Amazon dispose of items in your FBA inventory stored at an Amazon fulfillment center. You can also remove inventory from a fulfillment center by submitting a removal order.

a. Fee details:

Time of chargeWhen disposal order is complete
Fee structurePer unit disposed. Rate based on unit shipping weight

b. Rate cards:

Size tier

Shipping weight

Disposal fee per unit

Standard size

0 to 0.5 lb

$0.32

0.5+ to 1.0 lb

$0.35

1.0+ to 2.0 lb

$0.48

More than 2 lb

$0.67 + $0.35/lb above 2 lb

Oversize and special handling items*

0 to 1.0 lb

$0.60

1.0+ to 2.0 lb

$0.72

2.0+ to 4.0 lb

$1.26

4.0+ to 10.0 lb

$2.32

More than 10.0 lb

$3.50 + $0.35/lb above 10 lb 

*Special handling items may include apparel, shoes, watches, jewelry, and dangerous goods.

c. Fee examples:

You decide to request the disposal of two standard-size units, and each unit has a shipping weight of 0.56 lb. The unit’s shipping weight is rounded up to 0.6 lb

→ Disposal fee of 1 unit =  $0.35 → Disposal fee of 2 units = $0.7

You decide to request the disposal of three oversize units, and each unit has a shipping weight of 10.1 lb. The unit’s shipping weight is rounded up to 11 lb

→ Disposal fee of 1 unit =  $3.85 ($3.50 for the first 10 lb and $0.35 for the additional 1 lb)→ Disposal fee of 2 units = $11.55

6. FBA removal order fees

Removal fees are charged per-item removed. Typically, removal orders are fulfilled in 14 business days. However, removal order processing may take 30 business days or more during the holiday season and peak removal periods.

a. Fee details

Frequency of chargeOne time
Time of chargeWhen removal order is complete
Fee structurePer unit removed. Rate based on unit shipping weight

b. Rate cards

Size tier

Shipping weight

Removal fee per unit

Standard size

0 to 0.5 lb

$0.32

0.5+ to 1.0 lb

$0.35

1,0+ to 2.0 lb

$0.48

More than 2 lb

$0.67 + $0.35/lb above 2 lb

Oversize and special handling items*

0 to 1.0 lb

$0.60

1.0+ to 2.0 lb

$0.72

2.0+ to 4.0 lb

$1.26

4.0+ to 10.0 lb

$2.32

More than 10.0 lb

$3.50 + $0.35/lb above 10 lb

*Special handling items may include apparel, shoes, watches, jewelry, and dangerous goods.

c. Fee examples:

ProductShipping weightSize tierRemoval fee
Book0,5 lbStandard size$0,32 per unit
Shoes1 lbStandard size (special handling)$0,60 per unit
Bell22 lbOversize$7,70 per unit