What are the Amazon FBA storage fees and how are they calculated?

In general, FBA fees include storage fees, order processing fees, pick and pack fees, weighing processing fees, and other service fees.

To put it simply: FBA fee = execution fee (order processing fee + sub-packaging fee + weighing processing fee) + storage fee + warehousing inventory prevention service fee.

1) Monthly inventory storage fee.

Monthly storage fee = the number of products that should be charged 6 months long-term storage fee x unit product volume x storage fee per cubic meter in the corresponding month.

Amazon generally charges storage fees for the previous month between the 7th and 15th of the following month, and storage fees vary depending on the size tier and month of the product, starting April 1, 2018, the monthly inventory storage fee for standard-size and oversized products will be increased by USD cubic feet.

2) Long-term inventory storage fees.

Long-term storage fee = the number of products that should be charged long-term storage fee for the time period x unit product volume x long-term storage fee for the corresponding time period.

In fact, if you want to reduce FBA costs and better manage FBA inventory, you can use some professional Amazon FBA management software. ScootBird FBA assistant helps sellers connect with FBA data, intelligently improve the efficiency of the chain, and prevent shortages; Using return information matching and rolling calculation of storage fees, sellers can grasp comprehensive FBA information in a timely manner and avoid unnecessary FBA cost waste; It can also easily create shipping plans, strengthen the management process between Amazon FBA inventory and local inventory, and improve operational efficiency.

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Amazon FBA fee calculation formula, Amazon FBA product general pricing formula: FBA product selling price = (product cost + FBA head fee + FBA fee) x (1 + profit) (1 - commission). Where the cost of the product:

Cost commissions for production, promotion, taxation, labor and other aspects: Amazon charges different commission ratios for different categories, generally 8%-15%. FBA headway fee:

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Amazon FBA fee calculation formula, Amazon FBA product general pricing formula: FBA product selling price = (product cost + FBA head fee + FBA fee) x (1 + profit) (1 - commission). Where the cost of the product:

Cost commissions for production, promotion, taxation, labor and other aspects: Amazon charges different commission ratios for different categories, generally 8%-15%. FBA headway fee:

Logistics and transportation costs, customs clearance fees and other <>

<> expansion: FBA pricing formula = product cost + platform commission + FBA head fee + FBA fee + expected profit + others. In fact, in addition to storage fees, FBA also includes order delivery fees, removal order fees, return processing fees and unplanned pre-processing service fees, which add up to a lot of expenses, and only by mastering the cost of each part can we better calculate our profits.

Don't forget about the costs that come with FBAs and make good use of the numbers"9"In the marketing mind, pay attention to differential pricing, pay attention to market demand, and make timely adjustments, of course, in no special circumstances, it is not recommended to modify the product frequently. <>

The latest Amazon FBA fulfillment fee calculation method and fee changes in 2022 are as follows;

For all large standard-size products, except apparel, Amazon will use the greater of the unit weight or dimensional weight to determine the shipping weight.

3. Amazon will raise the cost of patting old removal and disposal seepage sheds. Ascension.

4Amazon will increase off-season monthly storage fees for standard-size and oversize products (January-September), and peak season storage fees (October-December) will remain unchanged. Effective February 1, 2022, Amazon's storage fees will increase to the following levels: January-September:

USD cubic feet (standard), USD cubic feet (king) October-December: USD cubic feet (standard), USD cubic feet (king) cents per cubic foot during January-September, with storage rates unchanged from October to December.

5Amazon will introduce a tiered rate structure for long-term storage fees.

Founded in 2010, it aims to be a multinational e-commerce operator, providing one-stop logistics and distribution services for Amazon FBA in Europe and the United States and European markets.

FBA orders include: Cost + Commission + Single Product Headship Fee + FBA Fee + Value-added Services (optional) Storage Fee.

If you want to know more about how the fees are charged, you can see below.

Cost: The cost of purchasing a product.

Commission: Different commissions for different categories, most of them charge 15%, and the first cost of a single product: that is, the cost of sending products from China to Amazon warehouse, generally using the average value, for example: a batch of 300 FBA products sent to the warehouse.

The total logistics fee is 3,600 RMB, and the first leg fee for a single product is 12 RMB.

FBA Fees: Includes Order Handling Fee, Pick-up & Packing, and Weight Handling Fee (Note: FBA has increased prices in 2016, and Order Handling Fee: This is the fee charged for processing one order.)

Pick-up and packing fees: Several items per order are charged several times. For example, if a customer places 1 order, including 2 items, they will be charged.

2 times this charge. (Note: Clothing is subject to an additional fee of around USD USD).

Weight Handling Fee: Product weight + plus the weight of the package that was packed at the time of FBA shipment.

To get a proper estimate of this cost, you need to know which size segment and which weight segment your product is charged for by Amazon.

For example, a product 15"*12"*4", 4 lbs. Reference.

Amazon FBA fees in the United States.

As in previous years, FBA fees in the US will be adjusted to reflect changes in costs in fulfillment, shipping, and customer service. The new FBA fee system will take effect on February 22, 2018. Sellers should be informed of this information and make adjustments to these changes.

In 2018, the FBA will see the following changes:

FBA Fulfillment Fee: Amazon will adjust the fulfillment fee for most sizes and weights of products. The adjusted fees will apply throughout the year, and Amazon will not introduce separate FBA rates between October and December 2018.

Dimensional weight calculations: Amazon is adjusting dimensional weight calculations to align with current industry standards. Currently, volumetric weight is calculated by dividing the unit volume (based on length, width, height, in inches) by 166.

As of February 22, 2018, Amazon will calculate by dividing the unit volume by 139 (instead of 166). Dimensional weight only applies to large standard-size items weighing more than 1 pound, and all small, medium, and large oversized items.

Amazon will announce changes to FBA inventory storage fees in early 2018.

FBA Fulfillment Fee

Frequently asked questions. Will the FBA's execution fee change for products placed before February 22, 2018?

FBA execution fees do not begin to be calculated and collected until the goods leave the fulfillment center. Therefore, if an order for a product is placed before February 22, 2018, but is not shipped until on or after February 22, 2018, then the order will be subject to the new FBA execution fee system.

How do I determine which product size class my product belongs to?

You can use Amazon's official product size chart to determine which size class your product belongs to.

Will this fee change affect Multi-Channel Fulfillment or Inventory Placement Service?

Multi-Channel Fulfillment and Inventory Placement Services will not change this time. However, it's important to note that dimensional weight is also used to calculate fees for Multi-Channel Fulfillment and Inventory Placement services, and the way Amazon calculates dimensional weight is about to change.

As of February 22, 2018, Amazon will calculate by dividing the unit volume by 139 (instead of 166). Dimensional weight only applies to large standard-size items weighing more than 1 pound, and all small, medium, and large oversized items.

Will this fee change affect FBA's Small and Light service fees?

No. The rates for the FBA Small and Light service will not change at this time.

FBA fee = fulfillment fees + monthly storage fees + inventory placement service

Fulfillment Fees = Order Handling + Pick & Pack + Weight Handling

There are two types of FBA fees and commissions for Amazon:

1. Amazon platform fees.

Amazon classifies each product into 38 categories (there is one category called "Other"). Amazon charges a different fee for each type of product, which is either a percentage of the referral fee for the product's selling price or a minimum referral fee, whichever is higher.

2. Amazon delivery fees.

Whether you use an FBA or another freight carrier, there will be fees involved. The difference is that Amazon will deduct the FBA fee directly from your sales and will not need to pay separately. Every two weeks, you'll earn your own sales profit, where the fulfillment fee and Amazon seller fee have been deducted.

Commissions are generally charged as a percentage of the product category, ranging from 15 to 26.

BA is an abbreviation for Fulfillment by Amazon, which is simply understood as Amazon dropshipping service. FBA (Fulfillment by Amazon, the dropshipping business provided by Amazon) Amazon currently has three main businesses:

Media (i.e., the sales commission of its own vendors products), FBA (rental** + selling traffic + sub-warehouse leasing + packaging and delivery + collection), Amazon Web Services (including S3 DB AQ and other products, which can be understood as IDC + CDN acceleration + personalized website building).

There are three conditions for commissions:

1. Have legal and authentic certificates;

2. The object of payment must be an independent taxpayer or individual who has the right to engage in intermediary services;

3. The commission paid to an individual, unless otherwise specified, shall not exceed 5% of the service amount, and may be included in the sales expense.

According to the current tax law, units or individuals engaged in intermediary services must have legal and authentic reimbursement vouchers when receiving commissions, and the payment object must be independent taxpayers or individuals (excluding employees of the enterprise) who have the right to engage in intermediary services, and the commission paid to individuals, unless otherwise specified, shall not exceed 5% of the service amount.

Commission expenses that do not meet the above conditions are not included in the pre-tax deduction of sales expenses. The commission paid by the enterprise shall not be deducted from the sales amount of the relevant sales business and the turnover tax payable (the commission on export goods shall be deducted from the export business income of the current period), and the commission that meets the requirements shall be included in the sales expenses (or operating expenses) and can be deducted before income tax.

Many novice friends have no concept of Amazon at all, do not know the distribution process after Amazon issues an order, and do not know how much different distribution channels cost, and whether the category they want to do is worth it. Lao Chen will teach you how to calculate profits and how to roughly select products today!

First of all, let me talk about the biggest benefit of using this tool - you can know the total cost of that FBA product charged by Amazon. Seeing this, some people may say, after converting a product to Amazon fulfillment, won't there be a fee preview? Just look at the cost preview (as shown below), why bother so much?

Yes, you can see the fee preview of the listing, but you may have overlooked one point, as I circled the text in the picture, the fee preview does not include storage fees [of course, some local tyrant sellers can ignore this small storage fee].

Back to the topic, today's purpose is to share with you a tool for calculating expenses, a tool, a tool.

After using the tool, you will find that the Amazon fee display for the same product is different [the fee preview is, and the calculator shows what I said, right?]

How can we use the tool? The steps are as follows:

1.In the upper-right corner of the homepage, click Help.

3.Enter the ASIN code and click Search, but you can also choose a different site.

4.Enter the product dimensions and weight for the product, noting the units.

5.Enter the ** of the product self-delivery and FBA respectively, and click Calculate.

6.The FBA fees displayed include storage fees, processing fees, and packaging fees, and then you will know how much profit the product makes by entering the product production cost.