Amazon Logistics (FBA) Fulfillment Fees

Understanding FBA Fees

Amazon FBA fees are calculated based on several components:

• Fulfillment Fees: A fixed fee per unit based on the item's size and weight. This includes charges for envelopes, special oversized items, and standard packages, with volumetric weight considered for larger items.
• Storage Fees: Monthly fees charged for storing inventory in Amazon fulfillment centers. These include monthly storage fees, aged inventory surcharges (for inventory over 241 days), and storage utilization surcharges (for sellers exceeding certain inventory levels).
• Optional Service Fees: Charges for services like returns processing, disposal, labeling, bagging, bubble wrap, poly bagging, and shrink wrapping.
• Selling Fees: A commission charged on each item sold, typically ranging from 8% to 15% of the selling price, depending on the product category.

FBA Fee Calculation

Your total FBA fees are the sum of your fulfillment fees, storage fees, and any applicable optional service fees. Fulfillment fees depend on the destination country, shipping speed, and the size and weight of the item.

FBA Shipping Fees

Shipping fees are calculated per unit based on size and weight. For items shipped via Low-Price FBA, actual unit weight is used. For packages and oversized items (excluding special oversized), the greater of unit weight or volumetric weight is used. Volumetric weight is calculated as (Length x Width x Height in cubic cm) / 5,000.

Low-Price FBA: This service is for small and light items with low selling prices (e.g., under £10 in the UK, €11 in Germany, €12 in France/Italy/Spain/Netherlands/Belgium/Ireland, etc.). It offers lower fulfillment fees for eligible items shipped domestically.

Standard FBA: Covers domestic FBA, Pan-European FBA, and European Fulfillment Network (EFN) services, with varying fees based on item size, weight, and destination.

Pan-European FBA: Allows sellers to store inventory in fulfillment centers across Europe to leverage lower local FBA fees and faster delivery. Additional surcharges may apply for oversized items and low-inventory levels.

European Fulfillment Network (EFN): Enables sellers to fulfill orders from inventory stored in their local country to customers in other EU marketplaces, incurring cross-border fees.

Self-Ship Packaging Program (SIPP): Offers reduced FBA fulfillment fees for items shipped in their original packaging, provided they meet certification guidelines.

FBA Storage Fees

• Monthly Storage Fees: Charged based on the volume (cubic meters/feet) of inventory stored in fulfillment centers, varying by location, calendar month, and average daily inventory levels.
• Aged Inventory Surcharge: Applied to inventory stored for over 241 days.
• Storage Utilization Surcharge: Applies to professional sellers whose storage utilization ratio (average daily inventory / average daily shipped units over 13 weeks) exceeds certain thresholds, particularly for non-apparel/accessories/footwear/bags categories.

FBA Optional Service Fees

These fees cover services such as:

• Returns to Seller, Disposal, and Liquidation
• FBA Prep Service
• Returns Processing Fee for High Return Rate Products
• Labeling, Bagging, Bubble Wrap, Poly Bagging, Shrink Wrapping

FBA Selling Fees

A sales commission is charged on each item sold, typically ranging from 8% to 15%, depending on the product category.

Multi-Channel Fulfillment (MCF) Fees

MCF allows sellers to use Amazon's fulfillment network to ship orders from their own sales channels (e.g., their own website). Fees are structured similarly to FBA, including fulfillment fees, storage fees, and optional service fees, calculated based on item size, weight, destination, and shipping speed.

• MCF Fulfillment Fees: Based on the number of units per order (UPO) and the item's size and weight.
• MCF Storage Fees: Similar to FBA storage fees, charged monthly for inventory held in fulfillment centers.
• MCF Optional Service Fees: Apply for services like returns, labeling, and packaging.

MCF Fee Calculation: Fees are determined by the UPO (Units Per Order) and the item's size and dimension tier. For example, an order with 2 UPOs will incur fees based on the 2-UPO rates for each item's respective size tier.

Key Considerations and FAQs

• Additional Fees: Sellers may incur subscription fees (depending on the selling plan), transaction fees for media items, and return processing fees for high-return rate items.
• Storage Fee Calculation: Based on cubic volume and average daily inventory, with potential surcharges for aged or poorly utilized inventory.
• Pan-European FBA Oversized Item Surcharge: Calculated based on historical inventory-to-sales ratios, applied when inventory levels exceed sales over specific periods.
• Return Processing Fee: Introduced to cover operational costs of returns, applied to items with return rates exceeding category thresholds. For apparel and footwear, it's 50% of the fulfillment fee.
• Low Inventory Fee (Pan-EU): Charged when inventory levels fall below 28 days of historical sales, impacting distribution efficiency and increasing costs.
• Self-Ship Packaging Program (SIPP): Offers reduced FBA fees for items shipped in their original packaging after certification.
• Aged Inventory Surcharge: Applied to inventory stored for extended periods to encourage faster inventory turnover.
• Product Restrictions: Certain product types are restricted from FBA. Refer to Amazon's FBA product restrictions for details.
• Buyer Returns: Amazon handles buyer returns, issuing credit memos and sales commission credits based on refund value. Fees may apply depending on the item and reason for return.
• Damaged/Lost Inventory: Sellers may be eligible for compensation if Amazon handles damaged or lost inventory.
• Customer Service: Amazon provides customer service for FBA orders but not for MCF orders.
• Cross-Border Shipping Options: Amazon FBA offers EFN, Pan-European FBA, and Multi-Country Inventory (MCI) for international fulfillment.
• Tax Implications: Sellers operating in the EU may have VAT registration and reporting obligations. Amazon's VAT Services can assist with compliance.

Useful Links for Sellers

For detailed information on fees, definitions, and seller support, please refer to the following resources:

• Seller Central: Detailed fee pages, definitions, and further information for UK, Germany, France, Spain, Italy, Netherlands, Sweden, Poland, Belgium.
• Seller Forums: For community discussions and support.
• Seller Support: For direct assistance.
• Revenue Calculator: A tool for comparing estimated revenues and fees across different fulfillment options.