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The Seller Guide to Amazon FBA Fees and Expenses!

Published:

August 16, 2023

The Seller Guide to Amazon FBA Fees and Expenses!

The Seller Guide to Amazon FBA Fees and Expenses!

Amazon
August 16, 2023

Being familiar with the substantial profit opportunities of trading on the largest global online marketplace, as an Amazon vendor, you probably recognize the importance of comprehending and handling the charges linked to Amazon's FBA service. This can prove to be demanding, even for seasoned sellers. I've prepared an all-encompassing guide to the FBA fee structure, aimed at keeping you ahead of the game and optimizing your profits for the year 2023. 

In this blog post, we'll delve into the fulfillment fees concerning hazardous materials (Hazmat), as well as the small and light fulfillment fees. Additionally, we'll explore the fees associated with the removal or disposal of products and the multi-channel fulfillment fees applicable to non-Amazon products. This comprehensive guide will empower you with the essential knowledge to make informed decisions and maximize your success in the dynamic world of e-commerce.

How does Amazon FBA Pricing Function?

Amazon's FBA fee is determined by three main factors:

Product Weight

A calculation to determine the volumetric weight of your Amazon product.

Product Size

The dimensions of the product refer to its size, which encompasses various measurements and physical attributes. 

Sales Channels

The channels through which products are sold include Amazon and third-party websites. Opting for Fulfillment by Amazon (FBA) service entails dealing with crucial fees, namely the Amazon Fulfillment Fees and Monthly Storage Fees. These charges play a vital role in the entire selling procedure.

Fulfillment Fee for Hazardous Material

Fulfillment by Amazon FBA imposes varying fulfillment fees for dangerous goods, commonly referred to as hazardous materials or hazmat, due to their unique requirements for handling and storage.

Size Tier and Shipping Weight Fulfillment Fee per Unit
Small standard 4 oz or less $4.19
Small standard 4+ to 8 oz $4.48
Small standard 8+ to 12 oz $4.64
Small standard 12+ to 16 oz $4.37
Large standard 4 oz or less $4.64
Large standard 4+ to 8 oz $4.89
Large standard 8+ to 12 oz $5.03
Large standard 12+ to 16 oz $5.34
Large standard 1+ to 1.5 lb $6.00
Large standard 1.5+ to 2 lb $6.29
Large standard 2+ to 2.5 lb $6.56
Large standard 2.5+ to 3 lb $6.85
Large standard 3+ lb to 20 lb $7.63 + $0.16/ half-lb above first 3 lb

Amazon FBA Fulfillment Fees for Oversized Dangerous Goods

Size Tier and Weight Max Dimension Fulfillment Fee per Unit
Small oversize 70 lb or less 60” x 30” $10.48 + $0.42/ lb above the first lb
Medium oversize 150 lb or less 108” (longest side) $19.92 + $0.42/ lb above the first lb
Large oversize 150 lb or less 108” (longest side) $101.91 + $0.83/ lb above the first 90 lb
Special oversize Over 150 lb >108” (longest side) $179.28 + $0.83/ lb above the first 90 lb

Fulfillment Fees for Small and Light Products on Amazon FBA

Amazon FBA Small & Light program is designed to lower fulfillment expenses for products that meet specific criteria related to weight, dimensions, and price. This initiative enables sellers to offer customers lightweight and compact items at budget-friendly prices. Participating in FBA Small and Light brings various advantages, including reduced fulfillment costs and improved accessibility for customers seeking affordable and conveniently sized products.

  • Prime customers enjoy the benefit of receiving free shipping.
  • Cost savings on fulfillment.
  • Creating a sense of trust with customers right away
Size Tier and Shipping Weight Dimensions Fulfillment Fee
FBA Small & Light small standard 4 oz or less 15 x 12 x 0.75 inches or less $2.47
FBA Small & Light small standard 4+ to 8 oz 15 x 12 x 0.75 inches or less $2.54
FBA Small & Light small standard 8+ to 12 oz 15 x 12 x 0.75 inches or less $2.61
FBA Small & Light small standard 12+ to 16 oz 15 x 12 x 0.75 inches or less $3.15
FBA Small & Light large standard 4 oz or less 18 x 14 x 8 inches or less $2.66
FBA Small & Light large standard 4+ to 8 oz 18 x 14 x 8 inches or less $2.77
FBA Small & Light large standard 8+ to 12 oz 18 x 14 x 8 inches or less $2.94
FBA Small & Light large standard 12+ to 16 oz 18 x 14 x 8 inches or less 6+ oz to 1.5 lb $3.77
FBA Small & Light large standard 18 x 14 x 8 inches or less $4.42
FBA Small & Light large standard 1.5+ to 2 lb 18 x 14 x 8 inches or less $4.68
FBA Small & Light large standard 2+ to 2.5 lb 18 x 14 x 8 inches or less $5.19
FBA Small & Light large standard .5+ to 3 lb 18 x 14 x 8 inches or less $5.40

FBA Removal or Disposal Fees

When a seller submits a removal or disposal request through Amazon FBA, the relevant fees for these services are immediately calculated. These fees will be imposed according to the mutually agreed-upon rate once the products are ready to be dispatched from the Amazon fulfillment centers. The updated removal and disposal order fees are provided below - 

Standard Size

Shipping Weight Removal or Disposal Fee per Unit
0 to 0.5 lb $0.97
0.5+ to 1.0 lb $1.46
1.0+ to 2.0 lb $2.20
More than 2 lb $2.83 + $1.06/ lb above 2 lb

Oversize and Special Handling Items

Shipping Weight Removal or Disposal Fee per Unit
0 to 1.0 lb $3.12
1.0+ to 2.0 lb $4.07
2.0+ to 4.0 lb $5.56
4.0+ to 10.0 lb $9.43
More than 10.0 lb $13.05 + $1.06/lb above 10 lb

In this context, special handling items would encompass shoes, watches, clothing, jewelry, and hazardous materials.

Multi-Channel Fulfillment Fees – Non-Amazon Products (Amazon FBA for Shopify Products)

You can employ Amazon FBA for products marketed through online platforms other than Amazon. If you operate a dedicated website for your product, you can leverage Amazon FBA to handle order fulfillment, relieving you of the logistical burden. Amazon labels this service as Multi-Channel Fulfillment (MCF). It's worth noting that the fees associated with Amazon FBA for MCF tend to be on the higher side.

Standard 3-5 Business Days Shipping

The MCF fulfillment fees were modified after January 19, 2023. The following information outlines the updated specifics for your reference.

Size Tier 1 unit order 2 unit order 3 unit order 4 unit order
Small Standard 6 oz or less $7.15 $4.92 $4.19 $3.72
Small Standard 6 to 12 oz $7.80 $5.49 $4.72 $4.23
Small Standard 12 to 16 oz $8.25 $5.70 $4.88 $4.38
Large Standard6 oz or less $7.35 $5.05 $4.49 $4.08
Large Standard 6 to 12 oz $8.20 $5.80 $4.90 $4.50
Large Standard 12 to 16 oz $8.50 $6.05 $5.15 $4.70
Large Standard 1 to 2 lb $9.50 $6.65 $5.88 $4.75
Large Standard Above 2 lb $9.50 + $0.62/lb $6.65 + $0.55/lb $5.88 + $0.55/lb $4.75 + 0.55/lb
Small oversize 2 to 30 lb $16.00 + $0.62/lb $11.79 + $0.55/lb $10.18 + $0.55/lb $8.62 + $0.55/lb

Oversize Item Shipping Fee

Size Tier Unit Orders
Small oversize Above 30 lb $32.88 + $0.62/lb
Medium oversize Above first 2 lb $25.25 + $0.62/lb
Large oversize Above first 90 lb $118.80 + $1.16/lb
Special oversize Above first 90 lb $189.19 + $1.21/lb

Expedited 2 Business Day Shipping

Size tier 1 unit order 2 unit order 3 unit order 4 unit order
Small standard 6 oz or less $9.37 $5.62 $4.40 $3.80
Small standard 6 to 12 oz $9.66 $6.14 $5.00 $4.50
Small standard 12 to 16 oz $11.50 $6.67 $5.61 $4.70
Large standard 6 oz or less $9.53 $5.62 $4.57 $4.15
Large standard 6 to 12 oz $10.35 $6.14 $5.12 $4.80
Large standard 12 to 16 oz $11.50 $6.67 $5.61 $4.95
Large standard 1 to 2 lb $12.00 $7.10 $5.90 $5.44
Large standard above 2 lb $12.00 + $0.62/lb $7.10 + $0.62/lb $5.90 + $0.62/lb $5.44 + $0.62/lb
Small oversize 2 to 30 lb $17.66 + $0.62/lb $12.83 + $0.62/lb $12.10 + $0.62/lb $11.75 + $0.62/lb

Oversize Products

Size Tier Unit Orders
Small oversize Over 30 lb $35.45 + $0.62/lb
Medium oversize Above first 2 lb $30.06 + $0.62/lb
Large oversize Above first 90 lb $135.19 + $1.25/lb
Special oversize Above first 90 lb $225.17 + $1.32/lb

Priority 1-day Shipping

Size tier 1 unit order 2 unit order 3 unit order 4 unit order
Small standard 16 oz or less $18.03 $9.60 $7.00 $6.35
Large standard 16 oz or less $18.58 $10.20 $8.30 $7.55
Large standard 1 to 2 lb $20.70 $11.81 $8.98 $8.00
Large standard Above 2 lb $20.70 + $0.65/lb $11.81 + $0.65/lb $8.98 + $0.65/lb $8.00 + $0.65/lb
Small oversize 2 to 30 lb $31.11 + $0.65/lb $16.89 + $0.65/lb $13.00 + $0.65/lb $12.31 + $0.65/lb

Oversize Products

Size Tier Unit Orders
Small oversize Over 30 lb $47.96 + $0.65/lb
Medium oversize Above first 2 lb $37.58 + $0.65/lb
Large oversize Above first 90 lb $183.70 + $1.25/lb
Special oversize Above preferably 90 lb $305.91 + $1.32/lb

Product Size Tiers

Product size tier Unit weight Longest side Median side Shortest side Length + girth
Small standard 16 oz 15 inches 12 inches 0.75-inch N/A
Large standard 20 lb 18 inches 14 inches 8 inches N/A

Oversize Products

Product size tier Unit Weight Longest side Median side Shortest side Length + girth
Small oversize 70 lb 60 inches 30 inches N/A 130 inches
Medium oversize 150 lb 108 inches N/A N/A 130 inches
Large oversize 150 lb 108 inches N/A N/A 165 inches
Small oversize Over 150 lb Over 108 inches N/A N/A Over 165 inches

Amazon FBA Monthly Storage Fees

Amazon charges sellers a monthly fee for storing their products in the company's fulfillment centers. These charges are applied from the 7th to the 15th of the subsequent month and depend on the size of the products, categorized into standard size and oversize tiers.

Amazon's monthly storage fees are determined by the size category of the product and the time of year. These charges are determined using the product's volume measured in cubic feet. The period from October to December, corresponding with the bustling Christmas shopping season, sees an escalation in storage fees as fulfillment centers globally are at their peak operational capacity.

Starting from October 1, 2023, there will be a rise of $0.20 per cubic foot in the highest monthly storage charges for oversized items from October to December. This adjustment will initially appear in the November 2023 billing for storage incurred in October 2023. No alterations to the peak monthly inventory storage fees for regular-sized products exist.

Non-Dangerous Goods

February 1, 2023, and after

Month Standard Size Oversize
January - Septembe $0.87 per cubic foot $0.56 per cubic foot
October - December $2.40 per cubic foot $1.40 per cubic foot

Dangerous Goods

Month Standard Size Oversize
January - Septembe $0.99 per cubic foot $0.78 per cubic foot
October - December $3.63 per cubic foot $2.43 per cubic foot

Amazon assesses a fee for products stored in their fulfillment centers for more than a year. The calculation for long-term storage fees takes place on the 15th day of each month.

Surcharge for Monthly Storage Fees

Since April 1 Amazon is implementing an additional storage charge based on how much storage you use compared to what you're allotted. This extra charge is determined using the storage utilization ratio, calculated on the final day of each month. For instance, if you store inventory in September 2023, Amazon FBA will compute the storage utilization ratio on September 30th, and any applicable surcharges will be added to your storage fees for October 2023.

Off-peak period (January-September)

Standard size Standard size Standard size Oversize Oversize Oversize
Storage utilization ratio Base monthly storage fee Storage utilization surcharge Total monthly storage fee Base monthly storage fee Storage utilization surcharge Total monthly storage fee
Below 26 weeks $0.87 per cubic foot N/A $0.87 per cubic foot $0.56 per cubic foot N/A $0.56 per cubic foot
26 - 39 weeks $0.87 per cubic foot $0.69 per cubic foot $1.56 per cubic foot $0.56 per cubic foot $0.46 per cubic foot $1.02 per cubic foot
39+ weeks $0.87 per cubic foot $0.94 per cubic foot $1.81 per cubic foot $0.56 per cubic foot $0.63 per cubic foot $1.19 per cubic foot
Sellers who are new, those operating with Individual selling accounts, and those with a daily volume of less than 25 cubic feet. $0.87 per cubic foot N/A $0.87 per cubic foot $0.56 per cubic foot N/A $0.56 per cubic foot

Peak Period (October-December)

Standard size Standard size Standard size Oversize Oversize Oversize
Storage utilization ratio Base monthly storage fee Storage utilization surcharge Total monthly storage fee Base monthly storage fee Storage utilization surcharge Total monthly storage fee
Storage utilization ratio $2.40 per cubic foot N/A $2.40 per cubic foot $1.40 per cubic foot N/A $1.40 per cubic foot
26 - 39 weeks $2.40 per cubic foot $0.69 per cubic foot $3.09 per cubic foot $1.40 per cubic foot $0.46 per cubic foot $1.86 per cubic foot
39+ weeks $2.40 per cubic foot $0.94 per cubic foot $3.34 per cubic foot $1.40 per cubic foot $0.63 per cubic foot $2.03 per cubic foot
Sellers who are new, those operating with Individual selling accounts, and those with a daily volume of less than 25 cubic feet. $2.40 per cubic foot N/A $2.40 per cubic foot $1.40 per cubic foot N/A $1.40 per cubic foot

FBA Aged Inventory Surcharge

From April 15, 2023, and after

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
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

Referral Fees

The referral fees charged by Amazon are essentially commissions that sellers need to pay for each product they sell on the Amazon platform. These fees are not fixed and can differ based on the product category, usually spanning from 6% to 45% of the item's selling price. However, regardless of the percentage, a minimum fee of $0.30 is applied to each item sold.

The referral fee exists to offset Amazon's operational expenses, encompassing services like maintaining a platform for sellers to showcase their products, managing payment transactions and order fulfillment, and delivering customer support and returns processing. This fee is subtracted from the seller's profits before disbursal.

Amazon has declared that it will maintain its current referral fees, considering them crucial in granting sellers access to a wide customer pool, reliable payment processing, and other advantageous amenities. Given these circumstances, certain fee classifications like Collectible Coins, Entertainment Collectibles, Sports Collectibles, and Collectible Cards will be removed. Consequently, items falling under these categories will be moved to the most suitable alternative category, potentially leading to altered referral fees – either decreased or increased – for these newly categorized products.

Additional Costs for Amazon Sellers to Consider

It's important to be mindful of the following charges in conjunction with the previously mentioned ones when opting for Fulfillment by Amazon (FBA). Being vigilant about these fees is crucial, as neglecting them could potentially impact your earnings negatively.

Excess Charges for Surplus FBA Inventory Storage

If the amount of inventory you have stored in Amazon's fulfillment centers goes beyond the designated capacity limit, you will incur extra charges for exceeding inventory storage, along with the regular monthly storage fees. If relevant, you might also face an additional fee for keeping inventory that has been stored for an extended period of time.

The charge is determined by how long your inventory surpasses the capacity limit, and it applies even if your inventory is subsequently decreased below the limit. The fee for exceeding the capacity is computed as $10 per cubic foot, using the average daily volume in cubic feet that your inventory occupies beyond the limit, across any storage space within the fulfillment center.

FBA Prep Service Fees

If a vendor aims to guarantee that their items are appropriately packed and ready for shipment, they can utilize the FBA Prep service. By utilizing the right packaging and preparation assistance, you can minimize delays in the time it takes to receive your items, ensure the safety of your products, and enhance the level of customer service. Opting for this service will lead to Amazon handling the preparation of your qualifying items, subject to a fee per unit. Amazon will furnish you with an approximate preparation fee depending on the anticipated service required for the chosen product.

FBA Label Service Fees

When utilizing the FBA label service to mark and receive a unit, a charge of $0.55 is applied per unit. You have the flexibility to adjust your default setting to the FBA label service at your convenience.

Unplanned Service Fees

In case products lacking the necessary label or preparation are shipped to Amazon's fulfillment center, there is a possibility of incurring unplanned service fees from FBA. These fees are applied on a per-unit basis.

Inventory Placement Service

Instead of having Amazon divide your shipment and send it to different centers, you have the option to enroll in the FBA Inventory Placement Service. This allows you to send all your eligible inventory to just one fulfillment center. However, there is a charge for utilizing this service.

Returns Processing Fees

Amazon provides free return shipping for products sold in specific categories. If you're returning items from the clothing and shoe categories, there will be a return processing fee applied per item. However, there are no return processing fees for products in categories like watches, jewelry, luggage, handbags, and sunglasses.

Amazon FBA Export Fees

If this exporting service is provided in your country, utilizing FBA allows you to send your products to numerous other countries. Consequently, depending on the sales platform you employ, there might be an applicable export charge for your merchandise.

Summing It Up

The Amazon FBA Fees Guide for 2023 offers essential insights to sellers regarding the expenses linked with utilizing Amazon's fulfillment services. The guide details diverse charges, including storage, fulfillment, and referral fees, elucidating the methods of fee computation. Sellers must consider these costs while determining product prices, ensuring their sales generate profits. Proficiency in comprehending the fulfillment by Amazon (FBA) fees guide is fundamental for sellers seeking to optimize their use of Amazon's fulfillment services.

FAQ’S

Q1) Why should you use Amazon FBA for your business?

Amazon FBA streamlines order fulfillment, storage, and customer service, allowing businesses to focus on growth. With Amazon handling shipping, returns, and Prime eligibility, sellers gain wider reach and trust, while offloading logistical burdens. 

Additionally, Amazon MCF is a fulfillment service that allows sellers to use Amazon's fulfillment network to fulfill orders placed on any sales channel, including their own website, eBay, and social media. This can help sellers save time and money on fulfillment, and it can also help them improve customer service by offering fast and reliable shipping.

Q2) Why should you choose Amazon FBA over other third-party logistics (3PL)?

Amazon FBA offers seamless integration with the Amazon marketplace, providing access to Prime benefits, a vast customer base, and efficient order fulfillment. This unique synergy enhances product visibility and customer trust, making it a compelling choice compared to traditional 3PL services.

Q3) Is Amazon FBA a good idea in 2023?

Yes, Amazon FBA can still be a good idea in 2023, but it is important to do your research and plan carefully. The market is competitive, but there are still opportunities for sellers who can offer unique products, provide excellent customer service, and effectively market their products.

Q4) Are Amazon FBA fees negotiable?

No, Amazon FBA fees are not negotiable. However, there are ways to lower your FBA fees by optimizing your product listings, shipping methods, and inventory levels. You can also claim back any fees that Amazon charges incorrectly.

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Being familiar with the substantial profit opportunities of trading on the largest global online marketplace, as an Amazon vendor, you probably recognize the importance of comprehending and handling the charges linked to Amazon's FBA service. This can prove to be demanding, even for seasoned sellers. I've prepared an all-encompassing guide to the FBA fee structure, aimed at keeping you ahead of the game and optimizing your profits for the year 2023. 

In this blog post, we'll delve into the fulfillment fees concerning hazardous materials (Hazmat), as well as the small and light fulfillment fees. Additionally, we'll explore the fees associated with the removal or disposal of products and the multi-channel fulfillment fees applicable to non-Amazon products. This comprehensive guide will empower you with the essential knowledge to make informed decisions and maximize your success in the dynamic world of e-commerce.

How does Amazon FBA Pricing Function?

Amazon's FBA fee is determined by three main factors:

Product Weight

A calculation to determine the volumetric weight of your Amazon product.

Product Size

The dimensions of the product refer to its size, which encompasses various measurements and physical attributes. 

Sales Channels

The channels through which products are sold include Amazon and third-party websites. Opting for Fulfillment by Amazon (FBA) service entails dealing with crucial fees, namely the Amazon Fulfillment Fees and Monthly Storage Fees. These charges play a vital role in the entire selling procedure.

Fulfillment Fee for Hazardous Material

Fulfillment by Amazon FBA imposes varying fulfillment fees for dangerous goods, commonly referred to as hazardous materials or hazmat, due to their unique requirements for handling and storage.

Size Tier and Shipping Weight Fulfillment Fee per Unit
Small standard 4 oz or less $4.19
Small standard 4+ to 8 oz $4.48
Small standard 8+ to 12 oz $4.64
Small standard 12+ to 16 oz $4.37
Large standard 4 oz or less $4.64
Large standard 4+ to 8 oz $4.89
Large standard 8+ to 12 oz $5.03
Large standard 12+ to 16 oz $5.34
Large standard 1+ to 1.5 lb $6.00
Large standard 1.5+ to 2 lb $6.29
Large standard 2+ to 2.5 lb $6.56
Large standard 2.5+ to 3 lb $6.85
Large standard 3+ lb to 20 lb $7.63 + $0.16/ half-lb above first 3 lb

Amazon FBA Fulfillment Fees for Oversized Dangerous Goods

Size Tier and Weight Max Dimension Fulfillment Fee per Unit
Small oversize 70 lb or less 60” x 30” $10.48 + $0.42/ lb above the first lb
Medium oversize 150 lb or less 108” (longest side) $19.92 + $0.42/ lb above the first lb
Large oversize 150 lb or less 108” (longest side) $101.91 + $0.83/ lb above the first 90 lb
Special oversize Over 150 lb >108” (longest side) $179.28 + $0.83/ lb above the first 90 lb

Fulfillment Fees for Small and Light Products on Amazon FBA

Amazon FBA Small & Light program is designed to lower fulfillment expenses for products that meet specific criteria related to weight, dimensions, and price. This initiative enables sellers to offer customers lightweight and compact items at budget-friendly prices. Participating in FBA Small and Light brings various advantages, including reduced fulfillment costs and improved accessibility for customers seeking affordable and conveniently sized products.

  • Prime customers enjoy the benefit of receiving free shipping.
  • Cost savings on fulfillment.
  • Creating a sense of trust with customers right away
Size Tier and Shipping Weight Dimensions Fulfillment Fee
FBA Small & Light small standard 4 oz or less 15 x 12 x 0.75 inches or less $2.47
FBA Small & Light small standard 4+ to 8 oz 15 x 12 x 0.75 inches or less $2.54
FBA Small & Light small standard 8+ to 12 oz 15 x 12 x 0.75 inches or less $2.61
FBA Small & Light small standard 12+ to 16 oz 15 x 12 x 0.75 inches or less $3.15
FBA Small & Light large standard 4 oz or less 18 x 14 x 8 inches or less $2.66
FBA Small & Light large standard 4+ to 8 oz 18 x 14 x 8 inches or less $2.77
FBA Small & Light large standard 8+ to 12 oz 18 x 14 x 8 inches or less $2.94
FBA Small & Light large standard 12+ to 16 oz 18 x 14 x 8 inches or less 6+ oz to 1.5 lb $3.77
FBA Small & Light large standard 18 x 14 x 8 inches or less $4.42
FBA Small & Light large standard 1.5+ to 2 lb 18 x 14 x 8 inches or less $4.68
FBA Small & Light large standard 2+ to 2.5 lb 18 x 14 x 8 inches or less $5.19
FBA Small & Light large standard .5+ to 3 lb 18 x 14 x 8 inches or less $5.40

FBA Removal or Disposal Fees

When a seller submits a removal or disposal request through Amazon FBA, the relevant fees for these services are immediately calculated. These fees will be imposed according to the mutually agreed-upon rate once the products are ready to be dispatched from the Amazon fulfillment centers. The updated removal and disposal order fees are provided below - 

Standard Size

Shipping Weight Removal or Disposal Fee per Unit
0 to 0.5 lb $0.97
0.5+ to 1.0 lb $1.46
1.0+ to 2.0 lb $2.20
More than 2 lb $2.83 + $1.06/ lb above 2 lb

Oversize and Special Handling Items

Shipping Weight Removal or Disposal Fee per Unit
0 to 1.0 lb $3.12
1.0+ to 2.0 lb $4.07
2.0+ to 4.0 lb $5.56
4.0+ to 10.0 lb $9.43
More than 10.0 lb $13.05 + $1.06/lb above 10 lb

In this context, special handling items would encompass shoes, watches, clothing, jewelry, and hazardous materials.

Multi-Channel Fulfillment Fees – Non-Amazon Products (Amazon FBA for Shopify Products)

You can employ Amazon FBA for products marketed through online platforms other than Amazon. If you operate a dedicated website for your product, you can leverage Amazon FBA to handle order fulfillment, relieving you of the logistical burden. Amazon labels this service as Multi-Channel Fulfillment (MCF). It's worth noting that the fees associated with Amazon FBA for MCF tend to be on the higher side.

Standard 3-5 Business Days Shipping

The MCF fulfillment fees were modified after January 19, 2023. The following information outlines the updated specifics for your reference.

Size Tier 1 unit order 2 unit order 3 unit order 4 unit order
Small Standard 6 oz or less $7.15 $4.92 $4.19 $3.72
Small Standard 6 to 12 oz $7.80 $5.49 $4.72 $4.23
Small Standard 12 to 16 oz $8.25 $5.70 $4.88 $4.38
Large Standard6 oz or less $7.35 $5.05 $4.49 $4.08
Large Standard 6 to 12 oz $8.20 $5.80 $4.90 $4.50
Large Standard 12 to 16 oz $8.50 $6.05 $5.15 $4.70
Large Standard 1 to 2 lb $9.50 $6.65 $5.88 $4.75
Large Standard Above 2 lb $9.50 + $0.62/lb $6.65 + $0.55/lb $5.88 + $0.55/lb $4.75 + 0.55/lb
Small oversize 2 to 30 lb $16.00 + $0.62/lb $11.79 + $0.55/lb $10.18 + $0.55/lb $8.62 + $0.55/lb

Oversize Item Shipping Fee

Size Tier Unit Orders
Small oversize Above 30 lb $32.88 + $0.62/lb
Medium oversize Above first 2 lb $25.25 + $0.62/lb
Large oversize Above first 90 lb $118.80 + $1.16/lb
Special oversize Above first 90 lb $189.19 + $1.21/lb

Expedited 2 Business Day Shipping

Size tier 1 unit order 2 unit order 3 unit order 4 unit order
Small standard 6 oz or less $9.37 $5.62 $4.40 $3.80
Small standard 6 to 12 oz $9.66 $6.14 $5.00 $4.50
Small standard 12 to 16 oz $11.50 $6.67 $5.61 $4.70
Large standard 6 oz or less $9.53 $5.62 $4.57 $4.15
Large standard 6 to 12 oz $10.35 $6.14 $5.12 $4.80
Large standard 12 to 16 oz $11.50 $6.67 $5.61 $4.95
Large standard 1 to 2 lb $12.00 $7.10 $5.90 $5.44
Large standard above 2 lb $12.00 + $0.62/lb $7.10 + $0.62/lb $5.90 + $0.62/lb $5.44 + $0.62/lb
Small oversize 2 to 30 lb $17.66 + $0.62/lb $12.83 + $0.62/lb $12.10 + $0.62/lb $11.75 + $0.62/lb

Oversize Products

Size Tier Unit Orders
Small oversize Over 30 lb $35.45 + $0.62/lb
Medium oversize Above first 2 lb $30.06 + $0.62/lb
Large oversize Above first 90 lb $135.19 + $1.25/lb
Special oversize Above first 90 lb $225.17 + $1.32/lb

Priority 1-day Shipping

Size tier 1 unit order 2 unit order 3 unit order 4 unit order
Small standard 16 oz or less $18.03 $9.60 $7.00 $6.35
Large standard 16 oz or less $18.58 $10.20 $8.30 $7.55
Large standard 1 to 2 lb $20.70 $11.81 $8.98 $8.00
Large standard Above 2 lb $20.70 + $0.65/lb $11.81 + $0.65/lb $8.98 + $0.65/lb $8.00 + $0.65/lb
Small oversize 2 to 30 lb $31.11 + $0.65/lb $16.89 + $0.65/lb $13.00 + $0.65/lb $12.31 + $0.65/lb

Oversize Products

Size Tier Unit Orders
Small oversize Over 30 lb $47.96 + $0.65/lb
Medium oversize Above first 2 lb $37.58 + $0.65/lb
Large oversize Above first 90 lb $183.70 + $1.25/lb
Special oversize Above preferably 90 lb $305.91 + $1.32/lb

Product Size Tiers

Product size tier Unit weight Longest side Median side Shortest side Length + girth
Small standard 16 oz 15 inches 12 inches 0.75-inch N/A
Large standard 20 lb 18 inches 14 inches 8 inches N/A

Oversize Products

Product size tier Unit Weight Longest side Median side Shortest side Length + girth
Small oversize 70 lb 60 inches 30 inches N/A 130 inches
Medium oversize 150 lb 108 inches N/A N/A 130 inches
Large oversize 150 lb 108 inches N/A N/A 165 inches
Small oversize Over 150 lb Over 108 inches N/A N/A Over 165 inches

Amazon FBA Monthly Storage Fees

Amazon charges sellers a monthly fee for storing their products in the company's fulfillment centers. These charges are applied from the 7th to the 15th of the subsequent month and depend on the size of the products, categorized into standard size and oversize tiers.

Amazon's monthly storage fees are determined by the size category of the product and the time of year. These charges are determined using the product's volume measured in cubic feet. The period from October to December, corresponding with the bustling Christmas shopping season, sees an escalation in storage fees as fulfillment centers globally are at their peak operational capacity.

Starting from October 1, 2023, there will be a rise of $0.20 per cubic foot in the highest monthly storage charges for oversized items from October to December. This adjustment will initially appear in the November 2023 billing for storage incurred in October 2023. No alterations to the peak monthly inventory storage fees for regular-sized products exist.

Non-Dangerous Goods

February 1, 2023, and after

Month Standard Size Oversize
January - Septembe $0.87 per cubic foot $0.56 per cubic foot
October - December $2.40 per cubic foot $1.40 per cubic foot

Dangerous Goods

Month Standard Size Oversize
January - Septembe $0.99 per cubic foot $0.78 per cubic foot
October - December $3.63 per cubic foot $2.43 per cubic foot

Amazon assesses a fee for products stored in their fulfillment centers for more than a year. The calculation for long-term storage fees takes place on the 15th day of each month.

Surcharge for Monthly Storage Fees

Since April 1 Amazon is implementing an additional storage charge based on how much storage you use compared to what you're allotted. This extra charge is determined using the storage utilization ratio, calculated on the final day of each month. For instance, if you store inventory in September 2023, Amazon FBA will compute the storage utilization ratio on September 30th, and any applicable surcharges will be added to your storage fees for October 2023.

Off-peak period (January-September)

Standard size Standard size Standard size Oversize Oversize Oversize
Storage utilization ratio Base monthly storage fee Storage utilization surcharge Total monthly storage fee Base monthly storage fee Storage utilization surcharge Total monthly storage fee
Below 26 weeks $0.87 per cubic foot N/A $0.87 per cubic foot $0.56 per cubic foot N/A $0.56 per cubic foot
26 - 39 weeks $0.87 per cubic foot $0.69 per cubic foot $1.56 per cubic foot $0.56 per cubic foot $0.46 per cubic foot $1.02 per cubic foot
39+ weeks $0.87 per cubic foot $0.94 per cubic foot $1.81 per cubic foot $0.56 per cubic foot $0.63 per cubic foot $1.19 per cubic foot
Sellers who are new, those operating with Individual selling accounts, and those with a daily volume of less than 25 cubic feet. $0.87 per cubic foot N/A $0.87 per cubic foot $0.56 per cubic foot N/A $0.56 per cubic foot

Peak Period (October-December)

Standard size Standard size Standard size Oversize Oversize Oversize
Storage utilization ratio Base monthly storage fee Storage utilization surcharge Total monthly storage fee Base monthly storage fee Storage utilization surcharge Total monthly storage fee
Storage utilization ratio $2.40 per cubic foot N/A $2.40 per cubic foot $1.40 per cubic foot N/A $1.40 per cubic foot
26 - 39 weeks $2.40 per cubic foot $0.69 per cubic foot $3.09 per cubic foot $1.40 per cubic foot $0.46 per cubic foot $1.86 per cubic foot
39+ weeks $2.40 per cubic foot $0.94 per cubic foot $3.34 per cubic foot $1.40 per cubic foot $0.63 per cubic foot $2.03 per cubic foot
Sellers who are new, those operating with Individual selling accounts, and those with a daily volume of less than 25 cubic feet. $2.40 per cubic foot N/A $2.40 per cubic foot $1.40 per cubic foot N/A $1.40 per cubic foot

FBA Aged Inventory Surcharge

From April 15, 2023, and after

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
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

Referral Fees

The referral fees charged by Amazon are essentially commissions that sellers need to pay for each product they sell on the Amazon platform. These fees are not fixed and can differ based on the product category, usually spanning from 6% to 45% of the item's selling price. However, regardless of the percentage, a minimum fee of $0.30 is applied to each item sold.

The referral fee exists to offset Amazon's operational expenses, encompassing services like maintaining a platform for sellers to showcase their products, managing payment transactions and order fulfillment, and delivering customer support and returns processing. This fee is subtracted from the seller's profits before disbursal.

Amazon has declared that it will maintain its current referral fees, considering them crucial in granting sellers access to a wide customer pool, reliable payment processing, and other advantageous amenities. Given these circumstances, certain fee classifications like Collectible Coins, Entertainment Collectibles, Sports Collectibles, and Collectible Cards will be removed. Consequently, items falling under these categories will be moved to the most suitable alternative category, potentially leading to altered referral fees – either decreased or increased – for these newly categorized products.

Additional Costs for Amazon Sellers to Consider

It's important to be mindful of the following charges in conjunction with the previously mentioned ones when opting for Fulfillment by Amazon (FBA). Being vigilant about these fees is crucial, as neglecting them could potentially impact your earnings negatively.

Excess Charges for Surplus FBA Inventory Storage

If the amount of inventory you have stored in Amazon's fulfillment centers goes beyond the designated capacity limit, you will incur extra charges for exceeding inventory storage, along with the regular monthly storage fees. If relevant, you might also face an additional fee for keeping inventory that has been stored for an extended period of time.

The charge is determined by how long your inventory surpasses the capacity limit, and it applies even if your inventory is subsequently decreased below the limit. The fee for exceeding the capacity is computed as $10 per cubic foot, using the average daily volume in cubic feet that your inventory occupies beyond the limit, across any storage space within the fulfillment center.

FBA Prep Service Fees

If a vendor aims to guarantee that their items are appropriately packed and ready for shipment, they can utilize the FBA Prep service. By utilizing the right packaging and preparation assistance, you can minimize delays in the time it takes to receive your items, ensure the safety of your products, and enhance the level of customer service. Opting for this service will lead to Amazon handling the preparation of your qualifying items, subject to a fee per unit. Amazon will furnish you with an approximate preparation fee depending on the anticipated service required for the chosen product.

FBA Label Service Fees

When utilizing the FBA label service to mark and receive a unit, a charge of $0.55 is applied per unit. You have the flexibility to adjust your default setting to the FBA label service at your convenience.

Unplanned Service Fees

In case products lacking the necessary label or preparation are shipped to Amazon's fulfillment center, there is a possibility of incurring unplanned service fees from FBA. These fees are applied on a per-unit basis.

Inventory Placement Service

Instead of having Amazon divide your shipment and send it to different centers, you have the option to enroll in the FBA Inventory Placement Service. This allows you to send all your eligible inventory to just one fulfillment center. However, there is a charge for utilizing this service.

Returns Processing Fees

Amazon provides free return shipping for products sold in specific categories. If you're returning items from the clothing and shoe categories, there will be a return processing fee applied per item. However, there are no return processing fees for products in categories like watches, jewelry, luggage, handbags, and sunglasses.

Amazon FBA Export Fees

If this exporting service is provided in your country, utilizing FBA allows you to send your products to numerous other countries. Consequently, depending on the sales platform you employ, there might be an applicable export charge for your merchandise.

Summing It Up

The Amazon FBA Fees Guide for 2023 offers essential insights to sellers regarding the expenses linked with utilizing Amazon's fulfillment services. The guide details diverse charges, including storage, fulfillment, and referral fees, elucidating the methods of fee computation. Sellers must consider these costs while determining product prices, ensuring their sales generate profits. Proficiency in comprehending the fulfillment by Amazon (FBA) fees guide is fundamental for sellers seeking to optimize their use of Amazon's fulfillment services.

FAQ’S

Q1) Why should you use Amazon FBA for your business?

Amazon FBA streamlines order fulfillment, storage, and customer service, allowing businesses to focus on growth. With Amazon handling shipping, returns, and Prime eligibility, sellers gain wider reach and trust, while offloading logistical burdens. 

Additionally, Amazon MCF is a fulfillment service that allows sellers to use Amazon's fulfillment network to fulfill orders placed on any sales channel, including their own website, eBay, and social media. This can help sellers save time and money on fulfillment, and it can also help them improve customer service by offering fast and reliable shipping.

Q2) Why should you choose Amazon FBA over other third-party logistics (3PL)?

Amazon FBA offers seamless integration with the Amazon marketplace, providing access to Prime benefits, a vast customer base, and efficient order fulfillment. This unique synergy enhances product visibility and customer trust, making it a compelling choice compared to traditional 3PL services.

Q3) Is Amazon FBA a good idea in 2023?

Yes, Amazon FBA can still be a good idea in 2023, but it is important to do your research and plan carefully. The market is competitive, but there are still opportunities for sellers who can offer unique products, provide excellent customer service, and effectively market their products.

Q4) Are Amazon FBA fees negotiable?

No, Amazon FBA fees are not negotiable. However, there are ways to lower your FBA fees by optimizing your product listings, shipping methods, and inventory levels. You can also claim back any fees that Amazon charges incorrectly.