Detailed explanation of Amazon FBA charging standards and FBA standards

Amazon FBA Service Overview

Amazon FBA (Fulfillment by Amazon) is a logistics service provided by Amazon to help sellers simplify the process of product storage, logistics and delivery. However, while using this service, sellers also need to pay a certain service fee.

FBA related fees

Order delivery fee

FBA delivery fees depend on the weight and size of the product after packaging (product size segmentation). If items are sold as a set, the total weight and dimensions of the entire set when packaged together are calculated.

Inventory storage fees

FBA inventory storage fees are divided into monthly inventory storage fees and long-term inventory storage fees. Storage fees vary by item size tier and month. Amazon generally charges the storage fee for the previous month between the 7th and 15th of the following month. Every year on February 15th and August 15th, Amazon Logistics will conduct inventory counts. During these two days, products that have been stored in Amazon fulfillment centers for between 6 and 12 months and for more than 12 months (inclusive) will be assessed for long-term storage fees.

Removal order fee

Removal fees are charged per item removed. Normally, removal orders will be processed within 10 to 14 working days. However, during holidays and peak removal periods (February, March, August, and September), it can take up to 30 days or more to process removal orders.

Return processing fee

The return processing fee is equal to the total shipping cost for a given item. This fee applies to products sold on Amazon in selected categories (clothing, watches, jewelry, shoes, handbags, sunglasses, and luggage) for which Amazon offers free customer return shipping, and that are actually returned to a Products from Amazon fulfillment centers. When multiple items are shipped to a customer in a single order, the returns processing fee for each individual item may be higher than the total shipping fee.

Unplanned pre-processing service fee

If the goods shipped to Amazon are not properly pre-processed or labeled, unplanned pre-processing services, such as labeling or plastic bag packaging, will need to be implemented at Amazon fulfillment centers. These services will require a fee.

FBA standard requirements

Commodity packaging requirements

Amazon requires sellers’ product packaging to meet certain standards to ensure that the products are not damaged during transportation and delivery. Packaging is generally required to be strong, durable, and able to withstand the bumps and pressure during normal transportation. Additionally, product information, barcodes, and shipping labels need to be properly identified so that Amazon can accurately process and track the product.

Product quality requirements

Amazon requires sellers to provide high-quality products, ensure that the products are not defective or damaged and meet customer expectations. Sellers need to ensure that the quality of their products complies with Amazon’s regulations and complies with relevant industry standards and regulations.

On-time delivery requirements

Amazon emphasizes the importance of on-time delivery. Sellers need to deliver the goods to Amazon’s FBA warehouse according to the agreed time. Timely delivery ensures that Amazon can process and deliver products in a timely manner and provide a good customer experience.

Inventory management requirements

Amazon requires sellers to reasonably manage inventory to ensure product availability and timely replenishment. Sellers need to pay close attention to inventory levels and promptly replenish out-of-stock items to avoid overstocking or out-of-stock situations. In addition, sellers need to regularly check the quality of their inventory to prevent expired or damaged goods from entering the sales process.

Customer service requirements

Amazon attaches great importance to customer service, and sellers need to provide timely and effective customer support and communication channels. Sellers should promptly respond to customer questions and feedback and resolve customer concerns and issues.

How to reduce Amazon FBA service fees?

In order to reduce Amazon FBA service fees, sellers can take the following measures:

• Optimize inventory management: Reduce excess inventory and out-of-stock situations, and try to control storage costs.
• Optimize product strategy: Choose popular products or products that meet current market demand, avoid choosing seasonal products or products with saturated markets, reduce inventory backlog and reduce distribution costs.
• Reduce return rates: Provide high-quality products and services to reduce return rates and return processing costs.
• Promptly dispose of discarded goods: avoid storing expired or unsalable goods and reduce disposal costs.
• Choose the appropriate transportation method: Choose the appropriate transportation method and time to reduce delivery costs.
• Understand the promotion policy: According to Amazon’s promotion policy, make reasonable use of promotion activities to increase sales and reduce storage costs.

Notes

When using Amazon FBA service, sellers need to pay attention to the following points:

• Understand the charging standards: Sellers need to understand the composition and calculation method of Amazon FBA service fees in order to reasonably plan and control fees.
• Pay attention to fee changes: Amazon FBA service fees will change according to policies and market demand, and sellers need to pay attention to changes in a timely manner.
• Properly manage inventory: Sellers need to reasonably manage inventory, minimize excess inventory and backlog, and control storage costs.
• Provide high-quality products and services: Sellers need to provide high-quality products and services to reduce return rates and return processing costs.
• Understand Amazon policies: Sellers need to understand Amazon’s policies and regulations to avoid being fined or having their services suspended for violating regulations.