Detailed explanation of Amazon FBA business operating procedures and fees

1. Overview of FBA business

Amazon FBA (Fulfillment by Amazon) is a one-stop logistics service provided by Amazon including warehousing, sorting and packaging, delivery, collection, customer service and returns after-sales. FBA can not only help sellers improve conversion rates, but also improve search rankings. For Amazon Prime members, the platform will provide free shipping services for FBA goods. In addition, sellers who join FBA do not have to worry about customer dissatisfaction due to problems caused by Amazon delivery, which will be the responsibility of Amazon.

2. FBA operation process

1. Ship to Amazon fulfillment center

• Upload product information to the seller platform.
• Have Amazon fulfill all or part of your inventory.
• Print the PDF labels provided by Amazon or use the Amazon Fulfillment Labeling Service.
• Use Amazon’s logistics or choose another carrier.

2. Create invoice

• Select “Convert & Send Inventory” on the Seller Center backend homepage to create a new invoice or add it to an existing invoice.
• Confirm the shipping address and choose LCL shipping or FCL shipping.
• Fill in the shipping address, save and continue.
• Select the shipping and packaging method, confirm and continue.

3. Prepare the product

• Fill in the product quantity and dimensions, save and continue.
• On the Prepare Products page, select a product category and continue.
• On the Label Products page, select the label printing method and continue.

4. Confirm delivery

• Add products to an existing destination warehouse’s shipping plan or create a new shipping plan.
• Confirm shipping information, including shipping address, packaging type, etc.
• Fill in the actual shipment volume and size and weight information [[1]).

5. Product storage

• Amazon receives and scans the seller’s inventory.
• Amazon records product dimensions for storage.
• Sellers can monitor inventory through Amazon’s integrated tracking system.

6. Customer orders

• For non-Amazon Prime members, orders with a total price of more than $35 are eligible for free shipping.
• Amazon Prime members enjoy free delivery services when purchasing products shipped by Amazon Logistics.

7. Sorting and packaging goods

• Amazon uses high-speed sorting and sorting systems to locate products.
• Buyers can request that this order be combined with other items fulfilled by Amazon.

8. Delivery of goods

• Amazon ships using the shipping method selected by the customer.
• Amazon provides tracking information to buyers.
• For orders placed on Amazon, buyers can contact Amazon for customer service.

3. FBA fee description

1. Order delivery fee

Amazon FBA charges a fixed fee for each product based on the size and weight of the product. Standard merchandise refers to products that weigh no more than 20 pounds after packaging and have dimensions that do not exceed 18 inches on the longest side, 14 inches on the second side, and 8 inches on the shortest side. Oversized items are products that exceed standard item sizes.

2. Inventory storage fees

• Monthly storage fee: charged based on calendar month and daily average inventory.
• Long-term storage fee: Charged per cubic meter based on the quantity of products for which long-term storage fees are charged x unit volume x long-term storage fee for the corresponding time period.

3. Removal order fee

If the seller wants Amazon to return or discard the inventory stored in the fulfillment center, there is a per-piece fee. Generally, clearance orders will be processed within 14 working days, and it may take 30 working days during holidays.