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Maximising Profit with Amazon FBA Fees: A Comprehensive Guide

What is Amazon FBA?

Amazon FBA

For those unfamiliar, Amazon FBA, or "Fulfilment by Amazon," is a service provided by the e-commerce giant where your products are stored in Amazon's fulfilment centres. Amazon handles storage, packaging, shipping, customer service, and returns for these products, freeing up your time to focus on business growth. However, understanding FBA fees is crucial as they can impact profit margins significantly.

Our guide to Amazon FBA Fees is essential for anyone aiming to maximize profit in their Amazon business. By comprehending and optimizing these fees, you can streamline operations and enhance your bottom line. Let's delve into it!

Different FBA Fees to Consider

Amazon FBA fees comprise Fulfilment Fees, Storage Fees, and Referral Fees.

Amazon FBA Fulfilment Fees

Fulfilment Fees cover Amazon's services such as picking, packing, shipping, handling returns, and customer service. These fees are based on the weight and dimensions of your product, including specific rates for standard-size and oversize items. It's important to note that Amazon considers both shipping weight and unit weight, factoring in packaging.

Amazon FBA Storage Fees

Amazon charges two types of storage fees: Monthly Inventory Storage Fees and Long-Term Storage Fees.

Monthly Inventory Storage Fees apply to all items stored based on the calendar month and your daily average volume of inventory, calculated per cubic foot. The cost varies depending on the time of year, being lower from January to September and higher during the peak selling season from October to December.

Long-Term Storage Fees are incurred if your inventory remains in Amazon's fulfilment centre for over 270 days, encouraging turnover and preventing long-term storage.

Amazon FBA Referral Fees

Referral Fees are Amazon's commission for allowing you to sell on their platform, charged per item sold as a percentage of the total sales price. This percentage varies by category, typically ranging from 6% to 45%, with an average around 15%. It's crucial to factor in these fees when calculating total costs and pricing strategies.

Additionally, there are extra fees for services like removal orders or items requiring special handling.

To maximise profits, it's essential to consider these costs when sourcing products. Incorporate FBA fees into your product cost from the start, ensuring they're integral to your pricing strategy and sourcing decisions.

BestPrep UK Amazon Prep Centre Fees

Amazon FBA

BestPrep UK is a leading amazon prep centre UK offering product preparation services for Amazon FBA sellers, saving you time and energy. With quick turnaround times and pricing aimed at optimising your bottom line, we handle receiving, quality inspection, creating shipping plans, preparation, and dispatching. Learn more about our services.


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