Which fees apply to Amazon FBA Sellers and how to work them out accurately?
Hi,
I’m really confused on how I can find the exact fees that apply to an Amazon FBA seller.
I’ll be selling on the UK market and my product is 30x20x10cm in it’s final packaging and weighs just under 1kg.
Production = £6 per unit
Shipping = £1 per unit
Total = £7 per unit
I’ll be shipping 500 units to the Amazon warehouse for storage for my initial order.
I’m planning to sell the product for £14.99 on Amazon.
What I’d like to know is where can I find the most accurate fees (including storage, referral fee etc)?
I’ve tried entering this information into the product listing, but the Fee Preview says it’s an estimate and excludes other fees like Inventory Storage etc.
I don’t want to price the item at a cost that is not making me any margin.
Would love your help on this guys.
Thanks.
Which fees apply to Amazon FBA Sellers and how to work them out accurately?
Hi,
I’m really confused on how I can find the exact fees that apply to an Amazon FBA seller.
I’ll be selling on the UK market and my product is 30x20x10cm in it’s final packaging and weighs just under 1kg.
Production = £6 per unit
Shipping = £1 per unit
Total = £7 per unit
I’ll be shipping 500 units to the Amazon warehouse for storage for my initial order.
I’m planning to sell the product for £14.99 on Amazon.
What I’d like to know is where can I find the most accurate fees (including storage, referral fee etc)?
I’ve tried entering this information into the product listing, but the Fee Preview says it’s an estimate and excludes other fees like Inventory Storage etc.
I don’t want to price the item at a cost that is not making me any margin.
Would love your help on this guys.
Thanks.
0 replies
Seller_z6B2L9xab6HlP
Inventory storage depends on the size of your item and the average daily stock held in a FC. It’s impossible to work this out without knowing how fast you’re going to go through the stock.
With fee preview make sure you click the link to add on and applicable VAT. It is a preview but it’s usually pretty accurate.
For a size of 30x20x10cm the assumed packaging weight is 100g. Have you already added this on when determining whether it’s under 1kg?
Most important fees are:-
- Inbound fees either through UPS (up to 15kg costs £4.25+VAT) or through your own courier or pallet delivery company.
- Selling fees (usually 15%+VAT, but this depends on the product’s category)
- Fulfilment fee (see rate table and don’t forget to add VAT if you’re not VAT registered).
- Storage fee (usually quite negligible, but your items are relatively large. A good target is to hold 30-60 days worth of stock).
- Additional fees (destruction 20p+VAT per item, removal 60p+VAT per item).
I would advise you to start with lower quantities in FCs and aim to restock relatively quickly (i.e. same day dispatch). Sending in 500 units that don’t sell could end up costing you quite a lot in storage and removal fees.
Seller_z6B2L9xab6HlP
Are you talking about the duty and tax fees that I’ll have to pay on a pallet delivery here?
Also, I’m not sure whether to use FedEx Air Shipping (many Chinese suppliers seem to offer this as an option, with fees included) to delivery to my office for quality checks or whether to deliver directly to the FC, saving on multiple delivery costs.
- Inbound fees are the shipping fees to get it to Amazon’s FC. If you’re sending from within the UK you can use UPS as above.
- Sending from outside the EEA you’ll have import VAT and duty to think about. Chinese shippers using FedEx don’t usually include payment of VAT and duty. FedEx will charge this to the recipient with an admin fee of £12 added on. Until you’ve got a good relationship with the supplier I would inspect the products before sending them to an FC.
I’ll be selling in the Hair Care category if this helps. this is still 15% + VAT right? Also, can I just calculate this at 16.2% as I’m not VAT registered?
- I’m not going to do all your homework for you - Amazon fees for specific categories can easily be found if you look for them.
By holding stock, do you mean keeping it somewhere else other than the FC?
- 30-60 days of stock in the FC. Be able to restock quick enough to maintain stock around that level.
Can you give me an example calculation from the above fees mentioned, using the OP in order to work them all out?
- Again, I’m not doing your homework for you. Work them out one by one and add them together.
Seller_JzdTQ2uyzaNeK
The fees can be identified through pulling a payments report from Amazon Seller Central.
I have detailed exactly how to do this step-by-step on my recent blog post on pulling a profit and loss report manually: