In-depth analysis of the composition and calculation method of Amazon logistics basic service fees

Amazon’s basic logistics service fee (Fulfillment by Amazon, FBA fee) is an expense that many cross-border e-commerce sellers must face. What this fee consists of and how it’s calculated often has a significant impact on a seller’s profitability. The following will introduce in detail the composition and calculation method of Amazon logistics basic service fees to help sellers better conduct financial planning and cost control.

The composition of Amazon logistics basic service fees

Amazon logistics basic service fees mainly include the following aspects:

1. Order delivery fee
   Order fulfillment fees refer to the fees incurred by Amazon for order fulfillment and related services provided to sellers. This fee directly affects the seller’s product pricing strategy, so the seller must understand its composition and changes.

2. Monthly inventory storage fee
   Products stored by sellers in Amazon fulfillment centers are subject to monthly storage fees. This fee is calculated based on average monthly and daily inventory levels.

3. Long-term storage fees
   When inventory is stored in Amazon warehouses for more than a year, sellers will be charged long-term storage fees. This fee is significantly different from the monthly storage fee, and it is something that sellers need to pay special attention to.

4. Clear Order Information Fee
   If you choose to return or dispose of inventory products stored in Amazon fulfillment centers, related clearance order fees will be incurred. This is usually charged on a per-case basis.

5. Return processing fee
   Amazon provides comprehensive return services to support sellers and will charge a return and exchange processing fee for each order with free return shipping. Sellers need to factor this cost into cost considerations.

6. Determine unplanned service fees
   When sellers send products without pre-processing or labeling, Amazon charges additional fees for those products.

Calculation method of Amazon logistics basic service fee

The calculation of Amazon’s basic logistics service fee is affected by many factors, mainly based on the size and weight of the product. Amazon divides items into standard sizes and oversized items:

• Standard size items
  The weight should not exceed 12 kilograms, the longest side should not exceed 45 centimeters, and the shortest side should not be less than 26 centimeters.

• Big-ticket items
  Commodities exceeding the above limits will be considered oversized commodities, and the cost will be calculated based on their weight within the set logistics service fee standard range.

In actual operation, Amazon will automatically calculate fees through the back-end software system, and sellers can obtain accurate deduction standards through the system without manual calculation.

The impact of logistics costs on sellers

High logistics costs will not only directly affect product prices, but also affect consumers’ purchasing decisions. At the same time, this may also lead to a decrease in sellers’ product sales, so it is crucial for sellers to understand and accurately calculate Amazon’s basic logistics service fees.

With a clear understanding of Amazon Logistics basic service fees, sellers can better optimize operational strategies and improve overall operational efficiency.