Amazon FBA Fees: A Comprehensive Overview of All Costs for 2024
What are the actual Amazon FBA costs? Often, Amazon FBA fees are solely associated with shipping and storage expenses. However, there are additional costs that must be considered when calculating the expenses of an FBA business.
Amazon newcomers are enthusiastic supporters of the Amazon business model with the in-house shipping service, Fulfillment by Amazon (FBA). The grand promise circulating in numerous Facebook groups is that virtually anyone can enter the Amazon arena with relatively modest startup capital and generate seven-figure profits in no time.
It’s undeniable that establishing one’s own logistics can be very costly. Fulfillment by Amazon – or simply FBA – covers many areas that would otherwise be the responsibility of online retailers. But what are the actual Amazon FBA costs, and is the service truly worthwhile for Amazon sellers?
What Is FBA, Anyway?
Over time, Amazon has optimized its own shipping processes and developed a paid product called “Fulfillment by Amazon” (FBA). With Amazon FBA, the marketplace assists online retailers in minimizing the extensive efforts involved in shipping items. The FBA program’s service portfolio includes the following:
As a seller, you are now responsible “only” for sending your goods to an Amazon fulfillment center. From there, Amazon takes care of packing and shipping for you. Amazon sellers now “only” need to ensure that their inventory is constantly replenished.
How Do the Costs Differ in the Amazon FBA Business?
When we talk about Amazon FBA costs, we mean all fees associated with transporting your goods to Amazon customers. But what should you actually consider when calculating the costs for your Amazon business?
Costs Related to Selling on Amazon
Regardless of the shipping method, whether you sell through Amazon FBA or self-fulfillment (Fulfillment by Merchant – FBM), additional costs come into play. These costs include:
Amazon FBA Costs
These fees encompass all expenses incurred through shipping with Amazon. This includes:
However, at the very beginning, it all starts with the products themselves. To get these products on Amazon, a lot of effort is put into purchasing and subsequently shipping them to Amazon FBA warehouses. In addition to the purchase price, there are other expenses, such as:
What are the Amazon FBA Costs?
As you can see, starting without a detailed cost calculation can be challenging. With a detailed cost analysis, you can determine in advance whether the targeted product will yield enough profit margin or if it might incur a deficit during price fluctuations in the Buy Box.
Let’s now go through the fees related to the Amazon Business and FBA Costs.
One-time Amazon FBA Costs:
Business Registration:
Without a business registration, you cannot engage in commercial activities in most countries. The costs for business registration in the US are within a modest range and, in most cases, will be less than $300. But fees vary highly depending on your state and business structure.
Fees for the Amazon Seller Account
When signing up with Amazon, you’ll encounter two account models: Basic and Professional. However, to leverage Amazon FBA, you’ll need a Seller Account with the Professional plan. The monthly cost stands at $39.99. Fees like the sales commission and additional Amazon FBA (shipping) costs kick in after a successful sale and shipment.
Monthly Amazon FBA Costs
Referral Fees (Sales Commission)
With each sale, another fee comes into play – the referral fee or sales commission. This is percentage-based and varies depending on the category and sales country. In the US, the Amazon sales fees range from 8% to 45% (a crucial consideration during product research and niche selection). These percentages apply to the total selling price – the final amount the buyer pays, encompassing the item price and the costs for shipping and gift wrapping. Since shipping is part of the Amazon FBA costs, they, in turn, impact the sales fees.
Additionally, Amazon charges a minimum referral fee of $0.30 per item in most categories. This does not apply to product categories such as:
You can find the current Amazon FBA sales fees here. However, this doesn’t cover all the relevant costs associated with Amazon FBA.
Closing Fee
For the sale of media products, an additional closing fee is applicable per item sold. This fee amounts to $1.80 per unit sold for products in the Books, DVD, Music, Software & Computer/Video Games, Video Game Consoles, and Video Game Accessories categories.
Amazon Advertising
With Amazon Ads, you can showcase your products or brand on both Amazon websites and external platforms using comprehensive advertising solutions. Amazon offers various advertising formats, ranging from Sponsored Products and Sponsored Brands to display and video ads, even including dedicated multi-page stores. This allows products to be positioned prominently, potentially surpassing current bestsellers. Sellers can strategically create advertising campaigns and promote their offerings under specific keywords, products, and categories.
While advertising is optional and not considered part of Amazon FBA costs, during the launch phase (60 days), Pay per Click ads are crucial to generate initial sales and enhance organic rankings.
Are ads billed when online sellers don’t secure the Buy Box for their items? No. Amazon fairly charges for advertising only when sellers have a chance to sell their products on Amazon. Sponsored Brands Ads are exempt from this rule as they do not aim for direct sales.
Costs for the Amazon FBA Service
Amazon FBA Storage Fees
The Amazon FBA storage fees are measured per cubic meter per month and vary in each country. Additionally, prices differ based on the product category and the season. During the holiday season, from October to December, higher storage costs are incurred compared to the off-peak season from January to September.
Storage fees January to September (USA)
| Storage utilization ratio | Standard-size1 | Oversize | ||||
| Base monthly storage fee (per cubic foot) | Storage utilization surcharge (per cubic foot) | Total monthly storage fee (per cubic foot) | Base monthly storage fee (per cubic foot) | Storage utilization surcharge (per cubic foot) | Total monthly storage fee (per cubic foot) | |
| Below 26 weeks | $0.87 | N/A | $0.87 | $0.56 | N/A | $0.56 |
| 26 – 39 weeks | $0.87 | $0.69 | $1.56 | $0.56 | $0.46 | $1.02 |
| 39+ weeks | $0.87 | $0.94 | $1.81 | $0.56 | $0.63 | $1.19 |
| New sellers2, individual sellers, and sellers with less than or equal to 25 cubic feet daily volume | $0.87 | N/A | $0.87 | $0.56 | N/A | $0.56 |
Storage fees October to December (USA)
| Storage utilization ratio | Standard-size1 | Oversize | ||||
| Base monthly storage fee (per cubic foot) | Storage utilization surcharge (per cubic foot) | Total monthly storage fee (per cubic foot) | Base monthly storage fee(per cubic foot) | Storage utilization surcharge (per cubic foot) | Total monthly storage fee (per cubic foot) | |
| Below 26 weeks | $2.40 | N/A | $2.40 | $1.40 | N/A | $1.40 |
| 26 – 39 weeks | $2.40 | $0.69 | $3.09 | $1.40 | $0.46 | $1.86 |
| 39+ weeks | $2.40 | $0.94 | $3.34 | $1.40 | $0.63 | $2.03 |
| New sellers2, individual sellers, and sellers with less than or equal to 25 cubic feet daily volume | $2.40 | N/A | $2.40 | $1.40 | N/A | $1.40 |
Storage Fees for Hazardous Materials (USA)
The storage of hazardous materials in logistics centers comes with specific requirements. To cover the additional costs associated with this, Amazon introduced a separate storage fee for such goods in June 2021.
| Month | Standard-size (per cubic foot) | Oversize (per cubic foot) |
| January – September | $0.99 | $0.78 |
| October – December | $3.63 | $2.43 |
Additionally, for some sellers, an additional charge applies if their average daily inventory volume for the product size category exceeds 25 cubic feet. You can find the specific conditions for this charge here: Storage utilization surcharge.
Aged Inventory Surcharge
Amazon writes: “Effective April 15, 2023, we will increase the granularity and magnitude for the aged inventory surcharge (previously known as the long-term storage fee) on inventory stored between 271 to 365 days. Additionally, we will introduce new tiers to begin the aged inventory surcharge on inventory aged 181 to 270 days for all products except items listed under clothing, shoes, bags, jewelry, and watches in the US. We will continue to charge an aged inventory surcharge for units that we store for more than 365 days.”
These long-term storage fees tag along in addition to your regular storage charges and won’t make an appearance if you’ve requested the removal or disposal of the units before the fees kick in. So, keep an eye on your inventory to keep your Amazon FBA costs on the down-low.
| Inventory Assessment date | Items aged 181-210 days | Items aged 211-240 days | Items aged 241-270 days | Items aged 271-300 days | Items aged 301-330 days | Items aged 331-365 days | Items aged 365 days or more |
| Monthly (every 15th of the month) | $0.50 per cubic foot (excluding certain items)* | $1.00 per cubic foot (excluding certain items)* | $1.50 per cubic foot (excluding certain items)* | $3.80 per cubic foot | $4.00 per cubic foot | $4.20 per cubic foot | $6.90 per cubic foot or $0.15 per unit, whichever is greater |
Excluded from this are items in the categories of clothing, shoes, bags, jewelry, and watches.
Additional Shipping Options
Amazon’s additional shipping options include
The first two shipping options require a more detailed explanation, as they represent a not insignificant value in the breakdown of all Amazon FBA costs.
Fees for Returns (Returns to the Seller) and Disposal
If the inventory causes high storage costs due to slow turnover or unsuitable resale or if the online seller is threatened by high long-term storage fees due to longer storage times, it is worth applying for returns (return of the goods to the online seller) or disposal of the items. With Amazon FBA, the costs for returns depend on the weight, item size and whether the goods have to be returned to you as the online seller locally or across borders.
In the case of disposal, the weight and size of the item are taken into account when calculating the fee.
Fee for listing large quantities (over 2 million SKUs)
If you list over 1.5 million SKUs on the Amazon marketplace (media items are excluded from this calculation), you will be charged a monthly fee based on the number of active SKUs you list on Amazon.
| Eligible SKU count | Rate | Charge frequency |
| Less than 1.5 million SKUs | None | N/A |
| More than 1.5 million SKUs | $0.001 per SKU over 1.5 million | Monthly |
Tools You Need
Amazon FBA Fees: Are Calculators Worth It?
Most calculators for Amazon FBA costs fall short. Anyone aiming to genuinely and professionally build or run an Amazon business should not rely on such small tools. While cost calculators might be handy for initial assessments of whether a product idea is feasible for Amazon FBA sellers, they are far too imprecise to keep track of actual costs. Relying on them risks online sellers’ margins and profitability.
Instead, professional Amazon sellers need sophisticated software that keeps costs, revenues, and profits in check. SELLERLOGIC Business Analytics is a specialized profit dashboard designed for Amazon sellers:
Because only when online sellers understand their business’s performance can they make data-driven decisions. With Business Analytics for Amazon, they can visualize all costs and revenues almost in real-time on a clear profit dashboard. This provides an overview of which listings to optimize or discontinue and which product segments to expand. Insights into the development of FBA products can lead to crucial strategic decisions and sustainable success.
Identify bestsellers and profit killers for free for 14 days: Try it out now.
Repricer and Refund for FBA Errors
Profit dashboards aren’t the only tools making an online seller’s daily operations smoother. Other tools are equally crucial for business success. This includes a reliable repricer that handles price optimization. With the help of a repricer, you secure the Buy Box, ensuring a steady turnover of your goods. This, in turn, impacts your storage costs by minimizing them. Additionally, all sellers should use a tool for refunding FBA errors unless they want to unnecessarily give money to Amazon. One of the most common errors is Amazon incorrectly assessing items, which can significantly increase your Amazon FBA costs as storage costs and shipping fees depend on it.
SELLERLOGIC Repricer
A repricer is instrumental in winning the Buy Box and ensuring a consistent turnover of your FBA goods, consequently minimizing storage costs. However, many repricer tools implement rigid rules like “The price is always two cents below the cheapest competitor product.” This approach can lead to conflicts in repricing:
That’s why the SELLERLOGIC Repricer for Amazon works dynamically and intelligently. This means it not only considers important metrics but thoroughly analyzes the market situation. It initially sets the price low enough for the product to win the Buy Box. However, it then re-optimizes the price, ensuring that the Buy Box is held not with the lowest but with the highest possible price. Moreover, this professional software offers additional optimization strategies to determine the best price, even for Private Label products.
SELLERLOGIC Lost & Found
The experiences of our customers speak for themselves:
Sandra Schriewer
SELLERLOGIC Lost & Found is irreplaceable for every FBA merchant in two ways: First of all, it shows reimbursements from Amazon of which one did not even know before. Secondly, it saves an unbelievable amount of time you would have needed for research and processing the cases. This time can now be allocated to different areas.
If you don’t want to needlessly give your money to Amazon, utilizing Lost & Found is an absolute must. In Amazon’s fulfillment centers, countless items are taken from shelves, packed, and shipped every day. With so much activity, mistakes are bound to happen – products can break, returns may never arrive, or FBA fees might be miscalculated. Often, FBA sellers are unaware of these issues as they are responsible for troubleshooting themselves.
SELLERLOGIC Lost & Found meticulously searches through all FBA reports and promptly reports any irregularities. Lost & Found can even do this retrospectively for up to 18 months. If there are ever issues with a refund, our Customer Success Team assists for free in communication with Amazon.
Conclusion – Remove the Rose-Colored Glasses
With numerous tools, including Amazon’s in-house shipping service, you can automate many processes in online retail. An investment that usually pays off. The costs for an Amazon business (with or without FBA) can be well-managed, and some items can be quickly reduced – such as packaging, shipping, marketing, or accounting. However, such a service is, of course, not free. Amazon FBA costs, therefore, constitute a significant portion that sellers must factor into their product prices.
Inexperienced online sellers may feel overwhelmed at first with the overwhelming number of factors to consider when selling with Amazon FBA. However, preparation is key, and with time, one can quickly find their way.
As an online seller, keeping the costs in mind for your FBA Amazon business will enable you to quickly assess which goods are suitable for FBA, when you might need to switch to your own logistics for certain product types, or which items you should completely remove from your marketplace and portfolio.
Frequently Asked Questions
FBA fees are the fees for the Fulfillment by Amazon service, they depend on many aspects such as the type and quantity of the products being stored and sent, the amount of time they are stored, seasonality, and so on.
Amazon FBA costs consist of several components. Firstly, there is a storage fee per cubic meter, which varies based on the product type and current season. Additionally, Amazon charges FBA shipping costs, which vary depending on the destination country and product dimensions. Additional costs, such as long-term storage fees or remission costs, may also apply.
FBA Fulfillment Fees encompass every step of the fulfillment process, unlike many fulfillment service pricing models that charge separately for picking, packing, and shipping.
Amazon fees include selling fees, per-item fees, or monthly fees depending on the selling plan, as well as additional costs for premium services or marketing. Amazon FBA fees are levied on products listed under the FBA service and cover the costs of storage, picking, packing, and shipping. Both Amazon fees and FBA fees are calculated based on the category, size, and weight of the sold item.
The most significant costs of Amazon FBA arise from storing and transporting products to Amazon’s warehouse. Ideally, you should ship your goods directly from your supplier to Amazon and try not to keep too much inventory.
To start an Amazon FBA business, sellers need startup capital. However, an exact amount is challenging to determine, as it depends on various factors such as the product category, existing logistics, personal goals, and more. Generally, the startup capital is lower than many beginners believe. With a startup capital of less than a thousand dollars, you can aim for six-figure revenue. Find out more.
Amazon FBA storage costs usually range between $0.46 and $3.09 per cubic foot and month.
The pure selling commission varies depending on the product category, ranging from 8% to 45%. However, additional costs, especially for Amazon FBA, include storage, remissions, and product shipping.
Since the actual costs for FBA consist of various items, there is no comprehensive document of Amazon FBA fees, neither as a PDF nor as a webpage.
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