Selling more products than the competition is the dream of every Amazon FBA seller. The online retail giant realizes this and has introduced the FBA (Fulfillment By Amazon) program. It is a program that picks up products, packs them up and ships them to customers so the seller doesn't have to do it. This has freed up so much time for them, allowing them to focus on achieving their goals. But this service is anything but free, meaning one needs to know the fees before signing up.
Before registering for this incredible program, you need to know the most relevant fees that will affect you. While there are many, you will want to give more consideration to the following:
You can't benefit from Amazon FBA if you are not a seller. Amazon has two plans that sellers need to choose when signing up. The Individual plan is the first plan, and this is where you don't pay anything for joining but must pay a per-item fee. The second plan is called Professional, where you pay $39.99 every month.
Only sellers under the Individual plan have to worry about the per-items fee. They get charged $0.99 per every item that they sell.
Both types of sellers will have to pay referral fees, which are a percentage of the sales they make. Referral fees usually range anywhere from 6% on the lower end to 45% on the higher end. Also, some items have what is known as the applicable minimum referral fee. You are not required to pay both but whichever is greater between the referral fee and the applicable referral fee.
This is quite easy to understand with an example. Suppose you’re selling an item that is worth $1 with a referral rate of 15%, meaning you pay $0.15. However, if the applicable minimum referral fee is $0.30, you will pay the $0.30 since it is the greater one between the two.
All sellers will pay this closing for every physical media item that they sell. That means for every book, DVD, music CD, physical game disk, video game console and other similar items you sell, you’ll pay $1.80.
This Amazon FBA fee is based on the size and weight of each unit. It is a combination of everything that Amazon has to do for you in order to make sure that a customer's order is fulfilled. This is everything from the moment the item is picked up from the fulfillment center to when it is delivered to the customer's door-step.
The charges for standard units are as follows:
The charges for over-sized units are as follows:
This Amazon FBA cost is for the units that you will be sending to Amazon fulfillment centers. It is a combination of your daily average volume and the month of the year it is.
The charges for standard-sized units are as follows per cubic feet:
The charges of over-sized units are as follows per cubic feet:
When it comes to Fulfillment By Amazon fees, these are the most important fees you need to be concerned with. While it might seem confusing and expensive on the face of it, many sellers have discovered that is is actually much cheaper than handling fulfillment by themselves. In the end, they discover that the FBA amazon fees aren’t so bad (it is just a matter of demystifying them).
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