Each seller and business owner must pay four fees. The first cost relates to costs associated with selling. The next fee relates to customer account fees. And the third and fourth expenses are related to shipping fees and Amazon FBA fees respectively. In the rest of this article, we are going to talk about the total cost of Amazon FBA. So, if you decide to start a business on Amazon for yourself or you are interested in this topic, do not miss this article.
What is Amazon FBA?
Amazon FBA is a great way for third party sellers to make it easy for them to ship and fulfill their orders. Amazon ships the product as you sell it. Amazon FBA also offers you other services such as storing your products, packing them, investigating customer complaints and even returning and refunding them. To get all these services and get the biggest market in the world, you must pay Amazon FBA Business. Here’s how it works: you, as a seller, send your products to the warehouse; Amazon FBA will do more.
What are Amazon FBA fees?
The latest FBA funding update is scheduled for June 2021. Based on this update, most referral fees are unchanged, but FBA fees have increased by around 2% or 3%.
Generally, there are two types of fees for those who work in FBA companies. One such cost that all sellers must pay is the seller’s account fee, and another fee is the dedicated FBA fee. In other articles, we will talk about the two bills in detail.
Amazon seller account fees
Amazon offers two plans for sellers. One is for beginners who usually sell less than 40 items per month. It is said that this plan is for everyone. It’s the best choice for beginners if you don’t need volume and speed. Another plan is a professional plan suitable for those who sell more than 40 per month.
The difference between the Individual and Professional plans is that you will pay $0.99 to Amazon for each sale under the Individual plan. On the other hand, you will pay a monthly subscription fee of $39.9 on the non-refundable professional plan; after that, you don’t need to pay Amazon for every sale, and you are free to sell as many things as you can. Consider paying these fees even if you have no sales.
Amazon shipping rates
It would be good to be careful, because this fee is not the responsibility of the seller. Amazon gives you credit because you ship your order yourself. Compared to the shipping rate for each shipment, Amazon credit is low.
Below is an Amazon shipping credit chart that gives you an estimate for each product.
For light and small things, credit is good. But, that is the tongue of a heavy, big big box, you like to fall. Using shipping software can significantly reduce shipping costs or increase Amazon’s profits. In fact, shipping costs are the number one reason Amazon sellers turn to Fulfillment by Amazon (FBA).
Fees related to sales
There are three payment types for Amazon sellers:
- Contribution fee
- Closing costs
- Minimum deposit amount
Depending on your field of work and the cost of your product, these fees will vary.
Other than that, Amazon sellers use personal or business accounts; they must pay an affiliate fee for every item sold on Amazon. The settlement fee is determined by two factors.
- Selling price
- Product type
Generally, a percentage of the selling price of the product is the reference price, which is usually between 6% and 45% depending on the type of product. On average, most of the sellers pay about 15% referral fee.
The Amazon Affiliate Fee Schedule is part of Amazon’s way of looking at affiliate fees for specific Amazon brands.
Products sold through Amazon’s ad format are paid by Amazon to third parties. These fees are known as closing fees and are around $1.80 and are in addition to referral fees for all types of ads such as:
- Video games
- Computer/video software and games
Minimum deposit amount
Some articles have minimum submission fees on Amazon. $1 is a common fee, but for watches and jewelry it increases to $2. If you sell in a category that has a minimum entry fee, of those fees and the entry fee, you will have to pay a higher fee, not both. These fees are based on the selling price of the product.
Fulfillment by Amazon
Amazon provides storage, packing, shipping, and delivery services to sellers and retailers. Before Amazon receives payment, Amazon FBA fees are deducted from it to cover your transaction costs.
Depending on the weight and size of your product, FBA fees vary. According to Amazon’s website, the criteria listed below must be met in order to be eligible for low and low income.
Before using the Amazon FBA service, you need to know the total cost of storing and shipping your products. You will find two types of FBA fees:
- Monthly Storage Fee: Since you store your products in Amazon warehouse, you will pay this fee
- Charges for pick up, packing and handling of cargo
It includes everything from packing to shipping fees, and even covers return processing fees.
There is a multi-channel processing fee (MCF) for sellers who can get fulfillment from FBA but sell through a different platform like Shopify. Standard domestic shipping is 3-5 business days. See the table below to see the fees.
There is no extra charge if you want to place an international order on Amazon through MFC. The chart below from Amazon shows the three fees that apply to one and the law.
Amazon FBA fees for non-Amazon products
It is possible to use Amazon FBA to sell products on channels other than Amazon. For example, you can sell products on your own dedicated website and use Amazon FBA to fulfill your orders. Amazon will be responsible for storage, picking, packaging, shipping, returns and customer service. A short version of this function is Multi-Channel Complement (MCF). Since sellers set different shipping options on their websites, Amazon also offers different fees for its MCF service:
- Priority Shipping (Next Day Shipping)
- Updated (2 days)
- Standard (3-5 days)
These tables list prices for standard products in large quantities. Please note that this price may change due to the size of the product.
- Standard 3-5 Shipping Shipping Over 5 charges
- Fast shipping 2 days
Standard products Amazon FBA monthly storage fee
Amazon Prime has quickly become popular because it has benefits for customers. On the other hand, sellers are quickly adapting to this speed and are using Amazon’s FBA program more than ever to sell their products. To make this service available to all sellers, Amazon transfers the money to the sellers. One of the storage fees is a monthly fee for storage usage based on the calendar month, your average daily inventory in cubic feet. Another factor that affects the rate is the size of the package well and ready for shipping, which must comply with FBA regulations and requirements. Security charges for goods classified as dangerous goods are different. The recharge period is usually between the 7th and 15th of the month. It is usually decided within a month after the payment has been made.
Amazon sellers or business owners have to pay four fees: selling fee, seller account fee, shipping fee, and Amazon FBA fee. In addition, there are three types of fees related to sales, which you will read about in detail in this article. If you want to know more about Amazon FBA, follow the OABeans blog page.