January 7, 2019

Amazon FBA Fees: How to Calculate Comissions|Complete Guide [UPDATE 2021]

Most sellers prefer the Fulfillment By Amazon (FBA) method when selling on Amazon, mostly because it removes the burden of having to package and ship out the product. Sellers face difficulties in understanding how Amazon FBA fees calculate and are unable to do it. This article breaks down the various fees associated with Amazon FBA and educates you on how to calculate Amazon FBA fees so you don’t get confused the next time you are being charged on Amazon.

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Fees Associated With Amazon FBA

When using the Fulfillment by Amazon option you need to take note of the various charges involved so they don’t bite off a big chunk of your profits. The fees associated with Amazon FBA are summarized into the categories below:

  • Referral Fees – This is a commission you pay for every product you sell on Amazon. The Referral Fee amount depends on the price of the product and the category in which it is listed, and it usually ranges from 5% and can go as high as 45%.
  • Minimum Referral Fee – A minimum Referral Fee applies to some categories of products. It costs $0,3. It's not always applied by Amazon (it depends on the Referral Fee amount).
  • Variable Closing Fee – Products listed in the Media category such as books, DVDs, and other media formats come with a flat fee that ranges from $1.35 to $1.80.
  • Seller Account Fees – This fee varies according to the type of seller account you operate on Amazon. All Professional seller accounts are charged a monthly subscription fee of $39.99 per month to sell on Amazon. For the Individual seller accounts, you are charged a flat fee of $0.99 on every product you sell on Amazon.
  • Amazon FBA Fulfillment Fee – This fee covers the cost of picking, packaging, and shipping out your product when you place it at an Amazon fulfillment center. It is relatively cheaper and less stressful when Amazon handles all that for you than having to do all the work yourself and incurring a more expensive shipping cost.
  • Inventory Storage Fee – This is the cost of storing your products in Amazon’s warehouse. Amazon charges this fee to discourage slow-selling products from leaving too long in Amazon warehouses and to ensure that sellers don’t take advantage of the system. These fees are based on the weight and size of the product as well as the time of the year. It is charged every month and based on the daily average volume which your inventory occupies in a warehouse.

Amazon FBA Fulfillment Fees

This fee is paid to Amazon for having it fulfill your order. Fulfillment by Amazon is available to both Individual and Pro account sellers. This charge covers the entire process that goes into fulfilling an order and includes picking, packing, shipping, customer service, and the return of goods if provided.

Amazon FBA fees are calculated per unit and are charged based on the Product size tier, Shipping weightDimensional weight, and Fee category of the product. Use the spreadsheet to estimate how much you will need to pay.

Use the table below to find out the Product size tier.

Product size tier

Unit weight

Longest side

Median side

Shortest side

Length + girth

 Small standard-size 

16 oz 15 inches 12 inches 0.75 inch n/a
 Large standard-size 20 lb 18 inches 14 inches 8 inches n/a
 Small oversize 70 lb 60 inches 30 inches n/a 130 inches

 Medium oversize

150 lb 108 inches n/a n/a 130 inches
 Large oversize 150 lb 108 inches n/a n/a 165 inches
 Special oversize

Over 150 lb

Over 108 inches

n/a

n/a

Over 165 inches

 

You'll find information about the commissions for different categories of products there.

Amazon FBA Fulfillment Fees (non-apparel)

Maximum shipping weights and dimensions for packaged items   

Product tier

Max dimensions

Shipping weight

Fulfillment per unit

FBA Small&Light

Small standard-size

 15"x12"0,75" or less 6 oz or less $2.16
6+ to 12 oz $2.35

FBA Small&Light

Large standard-size

 18"x14"x8" or less 6 oz or less $2.35
6+ to 12 oz $2.60

Small standard-size

  

15"x12"0,75" 

  

6 oz or less

$2.70

6+ to 12 oz

$2.84

12+ to 16 oz

$3.32

Large standard-size   

18"x14"x8"

6 oz or less

$3.47

6+ to 12 oz

$3.64

12+ to 16 oz

$4.25

1+ to 2 lb

$4.95

2+ to 3 lb

$5.68

3+ lb to 20 lb

$5.68+$0.3/lb above first 3 lbs

Small oversize 60" x 30"

70 lb or less

$8.66 + $0.38/lb above first lb

Medium oversize 108” (longest side)

150 lb or less

$11.37 + $0.39/lb above first lb

Large oversize 108” (longest side) 150 lb or less $76.57 + $0.79/lb above first 90 lbs
Special oversize >108” (longest side)
Over 150 lb
$138.11 + $0.79/lb above first 90 lbs

 

 If you sell items that come with lithium batteries, you will have to pay an additional $0.11 per unit.

Amazon FBA Fulfillment Fees (apparel)

Maximum shipping weights and dimensions for packaged items

Product tier

Max dimensions

Shipping weight

Fulfillment per unit

FBA Small&Light

Small standard-size

15"x12"0,75" or less

6 oz or less

$2.16

6+ to 12 oz $2.35

FBA Small&Light

Large standard-size
18"x14"x8" or less 6 oz or less $2.35
6+ to 12 oz $2.60

 

Small standard-size

 

 

15"x12"0,75"

 

6 oz or less

$3.00

6+ to 12 oz

$3.14

12+ to 16 oz

$3.62

 

 

 

Large standard-size

 

 

 

 

 

18"x14"x8"

 

 

6 oz or less

$3.87

6+ to 12 oz

$4.04

12+ to 16 oz

$4.65

1+ to 2 lb

$5.35

2+ to 3 lb

$6.08

3+ lb to 20 lb

$6.08+$0.3/lb above first 3 lbs

 

If you sell items that come with lithium batteries, you will have to pay an additional $0.11 per unit.

Amazon FBA Monthly Inventory Storage Fee

You are charged this fee for storing your products in Amazon fulfillment centers/ warehouses. This fee is charged to ensure that sellers do not keep slow-moving stocks for longer than necessary in Amazon warehouses. These fees are based on the space occupied by the product and it is measured in cubic feet and the calendar month of the year. This fee is also divided into two categories:

Standard Size:

  • January to September - $0.75 per cubic foot.
  • October to December - $2.40 per cubic foot.

Oversized:

  • January to September - $0.48 per cubic foot.
  • October to December - $1.20 per cubic foot.

If you are selling dangerous inventory (hazmat), the commission will be different:

Standard Size:

  • January to September - $0.99 per cubic foot.
  • October to December - $3.63 per cubic foot.

Oversized:

  • January to September - $0.78 per cubic foot.
  • October to December - $2.43 per cubic foot.

Additional FBA Fees

Besides the main FBA fulfillment and storage fees, there are also a few minor fees that Amazon charges for other services it renders. Such fees include:

  • Labeling Fee: Due to Amazon's strict barcode labeling specifications for all items shipped to FBA. You are charged for labeling if your item is not labeled properly. It costs $0.3 per unit. This fee for products, enrolled in the Small and Light Program, costs $0,10 per unit.
  • Long-term Storage: A Long-term Storage Fee is charged by Amazon when your stock was more than 365 days in the Amazon warehouse. This fee is charged in addition to Amazon FBA Monthly Inventory Storage Fee. The amount of fee is calculated taking into account the unit volume or per unit (whichever is higher). You'll pay a fee of $ 6.90 per cubic foot or $ 0.15 per unit (whichever is higher).
  • Removal Order Fee: If you wish to pull out your unsold stock from Amazon you will be charged a Removal Order Fee. Charged for each item and depends on the Product size tier. Varies from $ 0.32 to $ 3.50 + $ 0.35 / lb above 10 lb.

Size tier

Shipping Weight

Removal Fee per Unit

Standard-size 

0 to 0.5 lb $0.32
 0.5+ to 1.0 lb $0.35
1.0+ to 2.0 lb $0.48
More than 2 lb $0.67 + $0.35/lb above 2 lb

Oversize and special handling items

0 to 1.0 lb $0.60
1.0+ to 2.0 lb  $0.72

2.0+ to 4.0 lb

$1.26

 4.0+ to 10.0 lb

$2.32

 More than 10.0 lb

$3.50 + $0.35/lb above 10 lb

 

Special handling items may include jewelry, apparel, watches, shoes, and dangerous goods. 

  • Returns Processing Fee: FBA charges a Return Processing Fee for products in some categories where free return shipping for customers is allowed. This type of commission is applied for every item that buyers return in Apparel and Shoes categories. If products that were returned fit Watches,  Luggage, Handbags & Sunglasses and Jewelry categories, Returns Processing Fee will not be applied. The amount of the commission is calculated taking into account the Product size tier and Shipping weight.

Size tier

Shipping Weight

Return Processing Fee

Small Standard  

6 oz or less $2.12
6+ to 12 oz $2.23
12+ to 16 oz $2.32

Large Standard  

6 oz or less $0.60
6+ to 12 oz $0.72

12+ to 16 oz

$1.26

1+ to 2 lb

$2.32

2+ to 3 lb

$3.50 + $0.35/lb above 10 lb

3+ lb to 20 lb

$3.41 + $0.20/lb above first 3 lb

Oversize Small

$4.19 + $0.20/lb above first 2 lb

Medium

$10.57 + $0.25/lb above first 2 lb

Large

$43.70 + $0.25/lb above first 90 lb

Special

$75.08 + $0.25/lb above first 90 lb

 

  • Unplanned prep service fee: FBA has strict packaging and prep guidelines. All improperly prepped items are charged an Unplanned Prep Service Fee. It helps to avoid long-time processing of receiving shipments in the Amazon warehouse because Amazon takes care of incorrect packaging or labeling inventory problems.

How to Calculate Amazon’s Total Amount of Commission

Having gone through the various fees/commissions you are bound to be charged while selling on Amazon, here’s an example of how to calculate Amazon FBA fees.

Assuming you operate a Professional Selling Account and sell a LED TV for $100 with dimensions 24” × 10” × 3.5” (Small oversize) and an outbound shipping weight of 20 lb that is in storage between January to September periods. Let's say that you store 70 units per month on average. Your total commission per month becomes:

                    Referral Fee - $100 × 0.08 = $8

                    FBA Fulfillment Fee -  $15.88

                    FBA Storage Fee - $16,46 (70 units * 0,49 cubic feet per unit * $0.48)

                    Account Fee - $39.99

Your total commission equals $80.33.

FBA commissions may vary across different regions in the world. Using the various Amazon FBA profit calculator tools makes computing these charges a lot easier. For example, if you are selling in the UK you can use the Amazon FBA calculator UK to get accurate figures of the commissions you are paying.

About Amazon FBA Calculator

Sellers calculate their profits before and after they place their products on Amazon. It is important to do a little research on the cost, marketing, and estimated sales to enable you to project your expected profit margin. Amazon FBA calculator helps sellers to understand the profit they can make on a product. It gives you accurate commissions and fees on a product and the profit percentage for different selling points.

Amazon is one of the biggest e-commerce platforms in the globe that helped countless sellers expand their market and increase a profit margin. FBA fees could sometimes get difficult to make out. So, you can use special tools to calculate them. For example, Amazon FBA calculator Chrome. It will help you to calculate the profit percentage and choose the best method of execution on Amazon. This is a free extension that anyone can use.

You can also use the FBA Revenue Calculator for calculating fees. In any case, both applications will be useful for sellers who want to understand how to calculate the Amazon commission on their own.