Q&A Pro

What’s the payment process in Amazon FBA?

Jenny WeistJenny Weist asked 2 months ago
1 Answers
Dani Avitz Staff answered 2 months ago

The main costs of FBA are storage and filling: You are essentially paying “rent” for the warehouse space, for storing your products until you receive an order and Amazon delivers them directly to your customers. On the plus side, you will not have to pay for two-way shipping for Amazon Prime members (and neither will they). However, you will have to pay long-term storage fees, if your products stay in the warehouse for over six months.

You have two types of main FBA fees:

Fulfillment fees: includes picking, packing, even product returns.

Monthly storage fees: these are the storage fees you pay, based on the amount of space (measured in cubic ft.) your shipments take in the warehouse.

Size categories: There are two size category types in Amazon FBA:

a) Standard Size: Items that weigh less than 20 lbs. and measure less 18″x 14″x 8″ or less

b) Oversized items: Products include items that weigh over 20 pounds or are larger than 18″x 14″x 8” including packaging.

These costs also vary, depending on the season. Amazon does provide you with a free calculator to help you analyze your expenses and income. Remember, you need to ship your items to Amazon’s fulfillment centers, and that is a separate fee, although Amazon offers partnered carrier options to help reduce the shipping fees. If you sell your products in channels other than Amazon (such as your own website), you can still use Amazon FBA to ship your products.