FBA Fees – Are They Worth It?

For most business owners, the answer to the question: “Should I sell my product on Amazon?” is something of a no-brainer. Sales on Amazon account for almost half of overall e-commerce sales revenue in the US, and selling on Amazon allows brands to take advantage of a massive amount of online traffic that continues to increase year over year. However, making the decision to expand your sales channels to include Amazon will lead you to another set of questions, and at the forefront of these is: “How should I sell my product on Amazon?”

FBM vs FBA: Getting Your Products to Your Customers

On Amazon’s Seller Central platform, which allows you to manage your listings, pricing, and advertising, Amazon offers two options for you to get your product to your customers: Fulfillment by Merchant (FBM) and Fulfillment by Amazon (FBA). If you select Fulfillment by Merchant, you will be responsible for packing and shipping your orders, handling all returns, and working directly with the customer when there’s a problem with their order. If you choose to take advantage of FBA, Amazon will do all of those for you, and they’ll even give you a “Prime” badge next to your product name, which tells potential customers that they can get free two-day shipping on their order.

FBA Fees: What Fulfillment by Amazon Will Cost You

But Amazon won’t do it for free. There are two main costs associated with selling through FBA — the first is a fulfillment fee that Amazon charges to pick, pack, and ship your order to a customer; the second is a monthly storage fee that is charged based on how much space you’re using in Amazon’s warehouses. Of course, products can vary greatly in their size and storage capacity needs. In order to determine your fulfillment and storage fees, Amazon divides products into one of two overall categories based on the size of the product’s packaging.

Standard Size Products

A standard-size product is any product that weighs less than twenty pounds and is smaller than 18”x 14”x 8”. Amazon places these products into one of four size-based subcategories that affect fees.

Oversize Products

An oversize product is any product that weighs more than twenty pounds or is larger than 18”x 14”x 8”. Amazon places these products into one of four size-based subcategories that affect fees.

Once your product size category is determined, it’s pretty easy to see how much your FBA fees will be. Take note of the storage fee increase, which happens annually from October through December.

Choose Evolved Commerce to Help with FBA Fees

FBA Fees are just the tip of the iceberg when it comes to selling on Amazon. If you are looking for someone to help you with your Amazon account management or Amazon SEO, contact Evolved Commerce. Our team of Amazon experts can help you get your Amazon content fully optimized and bring you more sales than ever before!