E-Commerce Trends How to Check the FBA Fee Categories and Rates

Amazon FBA (Fulfillment by Amazon) is a service that allows Amazon to manage complex logistics, delivery, and returns on behalf of sellers. This service can reduce the burden of running an e-commerce business and provide convenience especially to global sellers in various ways. In turn, Amazon charges sellers various fees for the FBA service. Today, we would like to introduce the most typical FBA fees. The Second Logistics Fee – FBA Fulfillment Fee FBA fulfillment fees are costs that Amazon charges sellers in the process of delivering the products from the fulfillment centers to consumers after the products have been sold. This fee is charged for each individual sale and is based on volume and weight. The FBA fulfillment fee rates for standard-size products in product lines excluding apparel and dangerous goods are as follows:

You can check the fees for your products in detail through the ‘Revenue Calculator’ provided by Amazon Seller Central. If you click 'Define product' as shown in the image below and fill in the category and specification of the product, you can check the estimated FBA fee. Not only can you predict FBA fees through the calculator, but you can also check Amazon referral fees and monthly inventory storage fee. Access the ‘Revenue Calculator’ by the following link. (https://sellercentral.amazon.com/revcal?ref=RC1)

Depends on the Size – Monthly Inventory Storage Fee The monthly inventory storage fee is the cost of storing a seller’s product inventory in the Amazon fulfillment center. The settlement of such fees is usually billed to the seller between the 7th and 15th of each month, with the cost of the sale being deducted. The monthly inventory storage fee is also based on product volume, like the FBA fulfillment fee, and the rates are as follows:

The monthly inventory storage fee is calculated in cubic feet(ft3 = 1 ft X 1 ft X ft). Accordingly, lowercase figure out the inventory storage fee for one product, you can use the following formula or check it using the ‘Revenue Calculator’ mentioned above.

(Storage fee per product) = (Stored quantity) X (Volume per Unit / ft3) X (Cost per ft3)

One thing to note is that there is a difference in fees between January through September and October through December. In the United States, October to December is the peak season for discount events such as Black Friday, along with holidays such as Halloween, Thanksgiving, and Christmas. The inventory storage fees significantly increase during this period, so it is advantageous to organize inventory in advance through promotions or inventory clearing programs unless you want to sell them intensively during the peak season. Not This – Long-Term Storage Fees The long-term storage fee is a kind of punitive fee charged for inventory piling up in the Amazon fulfillment center because it has not been sold for a long period of time. Previously, the fee was charged only for products stored for more than 365 days. However, as of May 2022, Amazon began to apply to products stored for more than 271 days. The rates of long-term storage fees can be found in the following table.

As can be seen from the long-term storage fee rate table, storage fees increase significantly for inventories with storage periods exceeding 365 days. In addition, the inventory is classified as ‘problematic inventories’ and adversely affects the IPI (Inventory Performance Index), making it impossible to store the same item until the inventories are cleared. Therefore, for inventories whose storage period is expected to exceed 365 days, set high discount coupons or actively utilize promotions such as Amazon outlet deals[1] and inventory clearing programs[2] to quickly reduce inventory should be cleared. Even Returns are Sad – Returns Processing Fee The returns processing fee is a fee that occurs when Amazon recovers the product back to the Amazon fulfillment center when a customer returns a product.

Access Seller Central’s ‘Reports’ > ‘Payments’ > ‘Transaction View’ to check the fee. Set the transaction type to ‘Refund’ and click on the details of individual transactions. The return processing fee is shown as follows:

Other Fees – Amazon’s Additional Tasks Other fees are fees charged for tasks that allow Amazon to sell products (due to damage, loss of barcodes, etc.) that cannot be sold normally at the time of storing through tasks such as repackaging and re-attaching barcodes. Usually, fees are incurred for the following reasons:

This fee can be checked on your transaction details in ‘Reports’ > ‘Payments’ in Seller Central, or on ‘Inventory’ > ‘Manage FBA Shipments’ > ‘Track Shipment’.

So far, we have introduced the typical fees that incur when Selling Logistics on Amazon using Amazon FBA. In addition to the fees introduced today, Amazon FBA may charge various fees depending on the situation such as inventory removal and inventory storage overage fees. Therefore, each seller should carefully check the Payment Report, which can be accessed through the ‘Reports’ > ‘Payments’ in Seller Central, to ensure if there have been any unrecognized fees. Quick and Simple Logistics through Cello Square’s Amazon FBA Service! When Amazon sellers use FBA properly, they can deliver products to consumers quickly, as well as effectively manage inventory. For this, you need to first send your products to Amazon FBA. We recommend using the reliable Samsung SDS’s Cello Square FBA express and ocean transport service service.

Amazon FBA express service (Global) provides the fastest shipping service. It is the official SPN (Service Provider Network) of Amazon Korea, specializing in Amazon FBA express delivery to the United States, Japan, and Europe.

Amazon FBA ocean transport service (U.S./Japan) is a reliable and affordable FBA marine warehousing service for Amazon global sellers with established regional logistics hubs. In cooperation with overseas bases and logistics partners, It provides door-to-door services including shipping and warehousing.

References [1] 『Amazon Outlet』, Amazon Seller Central
[2] 『FBA Liquidations』, Amazon Seller Central


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