If you’re using Amazon FBA to fulfill your orders, it’s crucial to understand the three main fees that will impact your margins. Here’s a breakdown of the key charges you’ll see per unit sold:
1. Referral Fee
This is Amazon’s commission for each item sold. The percentage depends on the product category, but for most items, it’s 15% of the sales price. For example, if you sell a product for $40, your referral fee would be approximately $6.
2. Fulfillment Fee
This is what you pay Amazon to pick, pack, and ship the item to your customer. It’s calculated based on the weight and dimensions of your product, and may vary by the country you’re selling in. Heavier or bulkier items will naturally incur higher fulfillment fees.
3. Monthly Storage Fee
Amazon charges this fee to store your inventory in their warehouses. It’s also based on product size and volume, but there’s a catch: during peak holiday season (October to December), these storage fees can triple—so it’s critical to plan ahead and manage inventory levels wisely.
By understanding how each of these fees works, you can price your products more effectively, protect your margins, and plan for seasonal fluctuations.
If you’re using Amazon FBA to fulfill your orders, it’s crucial to understand the three main fees that will impact your margins. Here’s a breakdown of the key charges you’ll see per unit sold:
1. Referral Fee
This is Amazon’s commission for each item sold. The percentage depends on the product category, but for most items, it’s 15% of the sales price. For example, if you sell a product for $40, your referral fee would be approximately $6.
2. Fulfillment Fee
This is what you pay Amazon to pick, pack, and ship the item to your customer. It’s calculated based on the weight and dimensions of your product, and may vary by the country you’re selling in. Heavier or bulkier items will naturally incur higher fulfillment fees.
3. Monthly Storage Fee
Amazon charges this fee to store your inventory in their warehouses. It’s also based on product size and volume, but there’s a catch: during peak holiday season (October to December), these storage fees can triple—so it’s critical to plan ahead and manage inventory levels wisely.
By understanding how each of these fees works, you can price your products more effectively, protect your margins, and plan for seasonal fluctuations.
