As one of the world’s largest e-commerce platforms, Amazon has the most complete logistics system in the world, and one of the most popular logistics services is the Fulfillment by Amazon (FBA) service. This service allows sellers to send inventory to Amazon’s warehouses, and Amazon will perform a series of operations such as inventory management, logistics distribution, and after-sales services, allowing sellers to focus more on their core business of products and sales. However, FBA services are not free and sellers need to pay certain fees. This article will introduce in detail the fee structure and calculation method of FBA service so that cross-border e-commerce sellers can better utilize this service.
1. Classification of FBA service fees.
FBA service fees mainly include the following aspects:
1. Storage fees.
Storage fees refer to the seller’s fees for storing goods in the FBA warehouse. They are calculated based on the storage time and the number of goods stored, in US dollars/cubic feet/month. The costs vary with seasons and regions.
2. Picking and packaging costs.
Pick-and-pack fees refer to Amazon’s operating expenses to ship products to customers, such as picking and packaging products, printing shipping labels, etc. This fee is based on item size and weight and is quoted in USD/item.
3. Logistics costs.
Logistics costs refer to Amazon’s costs for shipping goods from the FBA warehouse to customers. They are calculated based on factors such as the size, weight, transportation method and destination of the goods. The costs vary with seasons and regions.
4. Other expenses.
In addition to the above fees, FBA services may also involve other fees, such as return processing fees, long-term storage fees, product cleaning fees, etc. Specific fees vary depending on the situation.
2. Calculation method of FBA service fees.
The calculation method of FBA service fees is relatively complex and mainly depends on many factors such as the size, weight, type, and destination of the goods. The following are the main calculation methods for FBA service fees:
1. Storage fee calculation method.
Storage charges are calculated per cubic foot of storage space occupied by the item. Storage fees are charged monthly and are calculated based on storage volume and time.
2. Calculation method of picking and packaging costs.
Pick and pack fees are calculated based on the size and weight of the item in USD/unit.
3. Logistics cost calculation method.
Logistics costs are calculated based on factors such as the size, weight, transportation method and destination of the product. The specific calculation method is as follows:
Standard size products: Calculated based on the size and weight of the product. Standard size items are defined as no more than 18 inches in length + width + height and no more than 20 pounds in weight.
Large items: Calculated based on the size, weight and distance of the item. Large items are defined as those exceeding 18 inches in length + width + height but not exceeding 96 inches and weighing not more than 150 pounds.
Special products: Some products have special billing methods, such as hangers, balls, etc.
4. Other cost calculation methods.
The calculation method of other fees varies depending on the situation. Return processing fees, long-term storage fees and other fees will be displayed in the seller’s account.
3. How to optimize FBA service fees?
In view of the fee structure and calculation method of FBA services, sellers need to think about how to optimize fees to enhance their competitiveness. The following are several suggestions for optimizing FBA service fees:
1. Plan inventory reasonably.
Inventory planning is the key to reducing FBA storage expenses. Sellers need to estimate product demand and control inventory quantity based on historical sales data, seasonal sales and other factors to reduce long-term storage costs.
2. Optimize product size and weight.
The size and weight of goods directly affect picking and packaging costs, logistics costs and other expenses, so sellers need to consider how to optimize the size and weight of goods to reduce costs.
3. Compare the costs of different transportation methods.
Sellers can compare the costs of different shipping methods and choose the shipping method that suits them best. For example, for smaller and lighter items, sellers may choose to ship by air, while for larger and heavier items, sea shipping may be a more cost-effective option.
4. Regularly clean up expired inventory.
Expired inventory will lead to an increase in long-term storage costs. Sellers need to regularly clear expired inventory to reduce costs.
5. Use the Amazon FBA calculator.
Sellers can use the Amazon FBA calculator to estimate FBA service fees, help them better understand the fee structure and calculation methods, and optimize fees.
In short, FBA service is one of the high-quality services provided by Amazon, but sellers need to carefully understand the structure and calculation method of FBA service fees, and adopt corresponding optimization strategies to control costs and increase their competitiveness.