With the development of cross-border e-commerce, more and more sellers opt for Amazon as a selling platform. Many Amazon sellers would choose Fulfillment by Amazon (FBA). However, for those who are new to Amazon FBA, how to sell on Amazon FBA?
To have a better understanding of Amazon FBA, you should know its meaning and how Amazon FBA works. Next, you should get familiar with the process of selling on Amazon FBA to achieve the final goal. Apart from the above, Amazon FBA fees are also widely concerned. Those who choose Amazon FBA know that Amazon charges fees for FBA services. However, few of them are clear about the pricing.
Don't worry! This article helps you by explaining everything about Amazon FBA. Read on!
What Is Amazon FBA?
In 2007, Amazon introduced FBA (Fulfillment by Amazon) services. In a word, it is the Amazon logistics service. An Amazon seller using FBA can send inventory to local Amazon warehouses, and as long as a customer places an order with the seller, Amazon will pick, pack, ship, and provide customer service for the seller. Choosing Amazon FBA allows sellers to scale the business and reach more customers benefiting from Amazon Prime.
How to Send/Replenish Inventory to Amazon FBA?
First of all, you should "Create a new shipping plan" or add products to an existing shipping plan, confirm your ship-from address, packing type of the products, set quantity, etc. to work on the shipment.
There are many ways to send or replenish inventory to Amazon FBA, including by sea, truck, air or even using express delivery services.
Amazon FBA Fees: How Much Does Selling on Amazon Cost?
As new Amazon FBA sellers, you should know about the pricing of Amazon FBA and stay up-to-date with the latest adjustment. There are two Amazon FBA plans, i.e., the individual plan and the professional plan.
The individual plan charges $0.99 per item sold plus additional selling fees. If you sell over 40 items per month, it would be better to go for a professional plan. The monthly subscription of a professional plan is only $39.99. However, a professional plan comes with a complete set of features.
Selling on Amazon FBA incurs many fees, including sales commission, order fulfillment fee, inventory storage fee (monthly + long-term), order removal fee, multi-channel fulfillment fee, returns processing fee, and unplanned prep fee. Amazon FBA fulfillment fee is of great importance in the sales. Like other online shopping platforms, Amazon charges the fee for its service upon the fulfillment of each order.
1. For most product categories, Amazon charges referral fees which accounts for 15% of the product prices.
2. If you use Amazon FBA, you will need to pay for the fulfillment and processing fee.
3. Some categories, such as books or DVDs, an additional fixed amount will be charged.
4. If you select the individual selling plan, Amazon will charge $0.99 for each item sold. Those who can sell 40 items or more should choose the professional plan to avoid being charged too much for selling.
5. If your inventory is kept for too long, you will have to pay for long-term storage fees.
Bear in mind this formula:
Amazon FBA Fees = Fulfillment Fee (according to size and weight) + Storage Fee (according to the size).
Let's take the Amazon US site as an example to explain the costs.
FBA Fulfillment Fees
Amazon sellers can check the fulfillment fee by referring to the following table. Please note that the shipping weight is calculated by adding the packaging weight. $0.11 will be added for shipping each item with lithium-ion batteries.
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FBA Storage Fees
Inventory storage fees are based on a daily average volume for the space occupied by your inventory in Amazon fulfillment centers. For the peak season, the storage fees will be much higher.
Attention: Long-term storage fees will be charged if your inventory has been in FBA fulfillment centers for more than 365 days!
It's worth mentioning that the subscription fee and VAT are excluded here.
You can refer to this article whenever necessary, as it provides some practical suggestions and makes it convenient for you to check the details of the payment.
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