Fulfillment by Amazon
FBA fees and facts
Selling your product through Amazon can be one of the best things you do to get more eyeballs, around-the-clock customer service and quick delivery … BUT like most big decisions make sure to gather the facts before signing up!
If you are considering Fulfillment by Amazon (FBA) for orders placed on Amazon.com, through a third party site or your own eCommerce site, factor these fees into your decision:
1. Two Standard Fulfillment Fees
Amazon uses your product’s category type and product size tier to calculate your standard monthly FBA order fee. Your monthly inventory storage fees are based on the calendar month and your daily average volume of inventory.
2. Shelf Life Fee
Longer shelf life items will cost you. FBA conducts an inventory clean up on the 15th of every month. Inventory that has been sitting for more than one year incurs a long-term storage fee ($6.90 per cubic foot or a $0.15 per-unit long-term storage fee, whichever is greater).
3. Peak Season = Higher Fees
Amazon charges higher storage fees during the peak buying season (October through December) so if your product is seasonal, you’ll be paying more for the listing.
4. Removal Fees
FBA charges a removal fee of $.50 to $.60 per unit if you want to pull inventory from Amazon or dispose of unsold stock.
5. Return Fees
A returns processing fee is charged for orders returned through Amazon. Free returns only applies to your customer.
6. Sales Channel Fees Differ
FBA charges more to process orders from your own channel sales. If you are interested in FBA mainly for the free shipping options, 24/7 customer support and returns handling, weigh the cost vs benefits before diving in.
Use this calculator to estimate your cost to sell on Amazon.
Prepping your product for Amazon
Once you’ve done the calculations and decide FBA is right for your product(s), speak with an Amazon representative or contact MCRL Overseas Group’s customer care team to get started! Amazon has strict requirements on:
- Packaging and Prep – Amazon has packaging and prep requirements you have to follow in order to have your product in their fulfillment centres. You can have FBA team prep your product for a fee, or save money and incorporate it right into your packaging/cover. Sellers sometimes struggle with preparing and shipping their items to Amazon’s fulfillment centers. MCRL knows the restrictions and will ensure your order meets Amazon’s requirements.
- Certified Carriers – Amazon will only receive orders from specific carriers. MCRL’s sea forwarders know the carriers to use and provided us with this quick reference guide to packaging and shipping inventory to Amazon.
- Delivery Times – Amazon gives specific times they will receive your items. You must follow their instructions or risk having your delivery denied.
- Country of Origin – There are different standards and regulations on receiving shipments from North America and Europe. MCRL ships to both continents and knows what to do.
Sheri Fink talks about FBA in the printing industry in her popular training course you can access here.
MCRL Overseas Group works with many FBA clients. Our customer care team would be happy to share our expertise and resources with you. Contact us to set up a FREE consultation.
Other links to note:
https://services.amazon.com/fulfillment-by-amazon/benefits.html
https://services.amazon.com/fulfillment-by-amazon/how-it-works.html
Shopify – USA Only
https://www.shopify.com/fulfillment
