New to Amazon? You need to start using FBA. Here's our helpful guide to 2022 FBA fees!
July 19, 2022
Any Amazon seller who takes their business seriously should be using FBA to do so. Some sellers are turned off from using it due to the FBA fulfillment fees associated with it. However, these fees are worth it when you consider the perks.
Learn About Amazon FBA Fees and Start Your Business
There are two possible fulfillment options for most Amazon sellers - FBM (Fulfillment by Merchant) and FBA (Fulfillment by Amazon). FBA allows merchants to process their products with Amazon’s help. They are stored in an Amazon warehouse. Amazon manages returns, customer service, and shipping for these products once they are in the warehouse and stored as inventory.
Amazon FBA allows sellers to focus on the essentials of their business without getting wrapped up in the storage, packing, shipping, or returns processes. Not only that, but FBA allows sellers to offer Prime Shipping to Amazon Prime customers.
Using Amazon FBA can help you:
- Rank well in the search results. Amazon prioritizes FBA products in its search algorithm. If your products are FBM, you will have a harder time ranking on the first page and getting the organic traffic you need to grow your business.
- Scale your business more effectively. Every business owner must find a way to put their energy in the places it matters. The last thing you want to be focused on as a seller is packing up orders and shipping them out. FBA takes away that stress so you can focus on growing your business.
- Build trust with Prime customers. FBA gives you access to offering Prime Shipping - something that the majority of Amazon customers expect. Having that blue checkmark next to your product builds trust and, ultimately, makes sales.
- Ensure quality customer service to your customers. You must have good customer service to keep customers and avoid bad reviews. Amazon handles this for you with FBA - another perk worth paying for.
- Avoid renting warehouse space for your inventory. Whether you pay Amazon for the space or not, you will need a place to store your inventory. Renting or buying your own space will cost you more, including the hassle of managing this space. FBA gives you a place to store your inventory without worrying about the details with little FBA inventory storage fees.
What Are Amazon FBA Fulfillment Fees?
Amazon FBA is not a free service. With so many benefits to offer, there are fees associated with it. These are called fulfillment fees.
There are two main kinds of fees that you will have as an FBA seller.
- Amazon Fulfillment Fees. These are the Amazon fulfillment centers fee paid to Amazon for their service of handling your inventory (packing, shipping, shipping weight, dealing with customer service, and returns). It is calculated with fulfillment fee per unit.
- Monthly Inventory Storage Fees. These are the fees paid to Amazon if you are storing products in their warehouses. FBA storage fees are monthly and dependent on the space your products occupy.
These fees vary and primarily depend on a product's weight, size, and category and what channels it is being sold on.
Amazon FBA fees change from time to time. Fulfillment fee depends a lot on the global condition. Amazon changed prices in April 2022 due to inflation and supply chain issues. We’ve included direct images from Amazon’s FBA fee page to get you the most detailed and current information possible. Feel free to check in on their page for help if needed.
These are the most current FBA fees for categories other than apparel. Note the increases that took place in April of 2022. The surcharge mentioned is a fuel and inflation surcharge of 5% that Amazon instituted at this time.
These are the FBA fees specifically for apparel items.
If you are selling hazardous materials for some reason, you will need to use the FBA Dangerous Goods program. The following fees will apply to you.
You can also use FBA to fulfill orders outside of Amazon’s platform. Of course, this does incur additional charges. Multi-Channel Fulfillment is a great way to keep your business operations smooth across all channels.
You can view all multi-channel fulfillment charges here.
There are a few other FBA fees that you may be charged depending on how you are using FBA.
These may include:
- Long-term storage fees. If you have storage that isn’t being moved out of the warehouse, you will be charged long-term storage fees.
- Removal order fees and disposal order fees. Amazon will return or dispose of your inventory for you, which will incur per-item fees.
- Returns processing fees. This fee is incurred when Amazon offers free return shipping for your product.
- Unplanned service fees. If your inventory arrives at a warehouse without being adequately prepared or labeled, Amazon will assist you (for a per-item fee).
You can utilize Amazon’s FBA fee tools here to get the most accurate understanding of your cost.
Is Amazon FBA Worth It?
Yes. Amazon FBA is worth all the fees. Whether you use Amazon fulfillment center services or not, you will pay for the hassle of shipping out items. What you gain in return for the fees you fork over to Amazon for the service is 100% worth it. Make sure you are taking advantage of all that FBA offers to keep your business growing strong.
Julia Grant is a copywriter specializing in e-commerce and small business, helping businesses expand their reach with copy that clearly communicates their message and converts. She is a certified translator and interpreter and prides herself on providing culturally relevant content in both English and Spanish.See more posts from this author