Shipping on Amazon can be handled in two different ways: Fulfillment by Amazon (FBA, Amazon handles all logistics) or fulfillment by the merchant (FBM, you the seller handle all logistics).FBA is the ideal choice for most eCommerce businesses. Customers receive the benefit of trustworthy Amazon shipping, while the seller can offload the cost of warehousing to some extent. Keep in mind, Amazon does charge long-term storage fees on any products that sit in their warehouse for more than 181 days. FBA is an attractive option because it simplifies the entire fulfillment process. However, it does have higher fees.Finally, Amazon fees come from three main sources:
- Fulfillment fees that depend on the size and weight of the shipment.
- Warehousing fees that change depending on how long your items will stay before being sold
- Referral fees, which are naturally part of selling on Amazon. Different seller account types use different fees.
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