Getting Charged an FBA Fee Per Unit
Hello,
I am new to selling on Amazon and am wondering how I will ever make a profit? Does Amazon charge an FBA fee for every unit sold or per total shipment to their warehouse? It doesn't make sense to pay $7.50 per unit that only make $6.25 per unit back for example. In this scenario I would be paying about $1750 for total shipment of products to Amazon then only making about $1350 back, less than what I spent to buy all the product. Maybe I'm doing the math wrong, but this doesn't seem profitable at all.
Getting Charged an FBA Fee Per Unit
Hello,
I am new to selling on Amazon and am wondering how I will ever make a profit? Does Amazon charge an FBA fee for every unit sold or per total shipment to their warehouse? It doesn't make sense to pay $7.50 per unit that only make $6.25 per unit back for example. In this scenario I would be paying about $1750 for total shipment of products to Amazon then only making about $1350 back, less than what I spent to buy all the product. Maybe I'm doing the math wrong, but this doesn't seem profitable at all.
0 replies
Seller_nRFmxiQg4EGrw
Change the "or" in your question to "and", and the answer will be YES.
There is a charge to ship your product to the Amazon warehouse; this covers nothing more than the shipping charge, whether small parcel service with UPS, or LTL/FTL. Amazon will receive your shipment, unpack it and check it in, then start charging you storage fees.
Then when you sell an item, Amazon will charge what you see listed as "FBA Fee" to cover the cost of picking/pulling your item from its place in the warehouse, packing it in a box, and delivering it to the customer. Note that FBA fees are ON TOP of the regular selling fees, which vary by category but are typically 15% of the total amount (plus $1.80 if you are selling media, plus $.99 if you are on the individual plan).
It sounds as if your math skills are fine, but you are now realizing that you did not have all of the numbers to plug into the calculation. At least you are figuring it out now, and not (like some) only after losing many thousands of dollars.
Note that on top of all the other fees associated with FBA, there is also a fee charged to have your items returned to you, or removed from inventory. Selling what is left at a small loss might still be better than recalling your inventory, especially if you lack another outlet to sell it at a true profit.
Blake_Amazon
Hi @Seller_KMHimdqTNqfLC, another seller has provided good info on this thread, however you can also check out this help page that discusses FBA fees!