FBA Series: FBA Fees Breakdown

By Tami Ben-David
Published on June 26, 2015 | 2810 views

06-26 large

As any Amazon FBA seller knows, the FBA fees policy is both detailed and exact, and sometimes a little hard to keep track of!

But keep track of them one must in order to optimize product inventory and fulfillment strategy.

Remember, FBA fees exist in addition to the existing 15% that Amazon charges third-party sellers. HOWEVER, sellers should not view the fees as an extra cost for selling on the Marketplace.

FBA fees are in place of a seller’s normal operational costs (outbound shipments, packaging, customer service, etc.). This is a huge consideration that many sellers often overlook.

The following is a complete breakdown of all the obligatory fees, as well as the fees that cover additional optional services.

* Due to Amazon’s recent changes to its fee structure, the below information is effective as of February 18, 2015.

Storage TypeFee
Monthly StorageThis fee is charged for all units stored in an Amazon fulfillment center and is based on calendar month and daily average volume. This is calculated in cubic feet when the unit is properly packaged and ready for shipment to the customer.

* From January to September, the fee is $0.48 per cubic foot per month.
* From October to December, the fee is $0.64 per cubic foot per month.
* From March 1, 2015, this fee will change to $0.51 for standard-size units and $0.40 for oversized units.
*From March 1, 2015, this fee will change to $0.68 for standard-size units and $0.53 for
oversized units

Long term storageA fee of $22.50 per cubic foot is charged semi-annually (August 15 and February 15) for units that have been stored in Amazon’s fulfillment centers for 365 days or more.
* From August 15, 2015, a fee of $11.25 per cubic foot will be charged for units that have been in Amazon fulfillment centers between 6 and 12 months
Order HandlingFor standard-size media items, there is no fee.
For standard-size non-media items, there is a $1 fee per order, unless the order cost $300 or more, in which case there is no fee.
For oversized items, there is no fee.
Pick & PackThere is a $1.04 fee per unit of standard-size items, unless the unit cost $300 or more, in which case there is no fee.
For small oversized items there is a fee of $4.05.
For medium oversized items there is a fee of $5.12.
For large oversized items there is a fee of $8.21.
For special oversized items there is a fee of $10.34.
(For certain clothing products, there is an addition $0.40 per unit.)
Weight HandlingThis is based on the Outbound Shipping Rate (Unit Weight + Packaging Weight). The total for each unit is then rounded up to the nearest pound.
For all small standard-size items that weigh 1lb. or less, there is a fee of $0.50.
For all large standard-size items that weigh 1lb. or less, there is a fee of $0.63.
For large standard-size media items that weigh 1lb. to 2lb., there is a fee of $0.88.
For large standard-size non-media items that weigh 1lb. to 2lb., there is a fee of $1.59.*
For large standard-size media items that weigh over 2lb., there is a fee of $0.88 + $0.41/lb.
over the first 2lb.
* For large standard-size non-media items that weigh over 2lb., there is a fee of
$1.59 + $0.39/lb. over the first 2lb.
Note: In the above cases, if the orders are worth $300 there is no fee for weight handling.
* For small oversized items, there is a fee of $1.59 + $0.41/lb. over the first 2lb.
* For medium oversized items, there is a fee of $2.23 + $0.41/lb. over the first 2lb.
For large oversized items, there is a fee of $63.09 + $0.41/lb. over the first 90lb.
For special oversized items, there is a fee of $124.58 + $0.41/lb. over the first 90lb.
* For large standard-size non-media units weighing more than 1lb and all oversized units,
Dimensional Weight (Unit Volume divided by 166) will be used to calculate Outbound
Shipping Rate, if it is greater than the Unit Weight.
Special handlingA $40 fee applies to plasma and projection large-screen television units with screens of 42? or larger.
Returns ProcessingIf a customer returns an item for which Amazon offers free return shipping (such as apparel, watches, jewelry, shoes, handbags, sunglasses and luggage), the seller will be charged a fee for each returned unit. This is calculated as the total fulfillment fee (Order Handling + Pick & Pack + Weight Handling) for a given product.
Inventory RemovalIf a seller wants their inventory to be returned or disposed of, they need to pay a fee. To return a standard-size item costs $0.50 per unit. To return an oversized item costs $0.60 per unit. To dispose of a standard-size item costs $0.15 per unit. To dispose of an oversized-size item costs $0.30 per unit.
Inventory ShippingThis would include the cost for shipping the items to an Amazon fulfillment center. A seller can choose to utilize Amazon Partnered Carriers or the Inventory Placement Service for this.
Product Preparation(optional)This is the cost involved to prepare the item for FBA. Preparing the item includes labeling it and properly packaging it, according to Amazon?s particular requirements. Amazon offers an FBA Label Service and an FBA Prep Service to sellers.

Those are the fees Amazon charges to FBA sellers. If you’re trying to calculate costs for any specific item, feel free to refer to this chart. Or use Amazon’s FBA calculator.

Want to learn more about FBA? Download our FBA guide!

About the Author

A British ex-pat, Tami been writing and content-strategizing for Israeli tech start-ups for the last 5 years. When she's not writing nerdy content, you can find Tami on open water charity swims or traveling to far-flung countries.

Read some more of their incredible blog posts

You may also like: