Fulfillment By Amazon is one of the best innovations in ecommerce. It has assisted numerous entrepreneurs to acquire a network of consumers of their products. Furthermore, it offers unique services like packing, fulfillment, shipment, as well as exceptional customer care. Like in every business, you need a reasonable budget plan and that is where the Amazon FBA fees come in. There are a number of Fulfillment By Amazon fees , and knowing them would help you plan your budget. Under other circumstances, it is possible that you may experience more losses than profits. Read further to understand the dynamics of the FBA Amazon fees .
FBA fees are charges for each service provided by Amazon, depending on the requests of the seller. For instance, when you utilize the storage option provided by FBA, then you are obliged to pay for the service. Looking for Amazon Product Research Tool try IO Scout free trial in 2020.
The principal Amazon FBA cost includes packaging, customer support, storage charges, and shipment. There are other subordinate fees which will be revealed as you continue to read. It is important that you know your fees, so that you can calculate your expenses, and know how to stay within your budget.
In summary, the following are the main Amazon FBA costs you must know about before making investments:
- The general fees that must be paid by all sellers, irrespective of if they are an FBA or FBM seller.
- Secondly, there are specific fees you must pay as an FBA seller.
- Thirdly, there are also specific fees to be paid when you’re an FBM (Fulfilled by Merchant) seller.
- Lastly, miscellaneous and voluntary services fees by Amazon.
Amazon Referral Fees
Amazon FBA fees are gotten on each product sold on the ecommerce platform. It is more like a commission to Amazon. Since the FBA fees are removed from every product, it is advisable to be mindful of the item you choose to sell. The percentage shouldn’t be above 15% and don’t pick goods that won’t be easy to sell. Referral fees aren’t to be paid in advance. Amazon, itself, deducts its commission from your account on the platform as soon as the trade is completed.
Amazon Fulfillment Fees
Fulfillment by Amazon fees are directly associated with the main services of FBA, including packaging, customer support, storing, and shipping. To make things more convenient for new, FBA embraces a secure storage facility. However, by utilising the storage space, you attract additional Amazon FBA fees . Also, you don’t have to worry about logistics or your customer’s satisfaction. It is recommendable to deal with lightweight products for cheaper prices.
Monthly Amazon FBA Fee
Once you are a regular user of Amazon marketplaces, then you have a standard fee to pay every month. There are different plans tailored to suit every entrepreneur’s unique tastes, and they are:
- The Individual plan: This plan doesn’t involve anything extravagant as deduced from its title. In this plan, it isn’t compulsory that you subscribe to any Amazon FBA fee . Nevertheless, you must pay $0.99 for every product you sold amongst other criterias.
- The Professional selling plan: There is a level you attain as an Amazon seller that you can get above 40 orders within a month. With $39.99, you can subscribe to the monthly professional selling plan.
Amazon FBA Storage Fees
Most new entrepreneurs don’t have the luxury of space which is why FBA specialists have provided an alternative. The FBA storage facility houses your goods until you are ready to ship or your customer is ready for the delivery. Once you pay the storage Amazon FBA fees , then you are good to go. The Amazon FBA storage cost relies on the size of the product or monthly subscription to the facility’s space.
Miscellaneous service fees
Usually, Amazon miscellaneous fees are quite affordable, depending on the category. Below are examples of the miscellaneous services that Amazon offers:
Rental book service fees
On the Amazon platform, sellers can also rent textbooks, but you must pay $5.00 rental book service fee per textbook rental that is sold.
When it comes to Amazon FBA fees , the category of the item matter. For example, media products like DVDs, books, Blu-Ray, and CDs attract a fixed cost of $1.80 fee on each sale. It only applies to sellers who specialise in these products.
High-volume listing fee
Some sellers have thousands of ASINs which is why they are to pay a monthly fixed cost of $0.005 per qualified ASIN. If you have over 100,000 items listed, then you must pay this fee alongside your Amazon FBA fees . The charge is either made from your Amazon account balance or credit card.
Although FBA is extremely helpful to entrepreneurs, the fees are something to watch closely so you don’t lose your profit. Once you get the hang of it, all other factors of FBA will be a cakewalk for you. The dynamics have been explained above. When you know what you are paying for, you will be more in control of your business. Read carefully and then you’re good to go!