What does Amazon FBA Cost?
1. Fulfillment Fees: Fulfillment fees are a pivotal component, ensuring that sellers are fairly charged for the end-to-end fulfillment services provided by Amazon. These fees are intricately tied to the size, weight, and shipping method of the products. For standard-size products, the fulfillment fees in India can vary, ranging from ₹13 to ₹26 for items under one pound and exceeding ₹26 for items over two pounds. This transparent fee structure permits sellers to anticipate costs and make informed pricing decisions.
2. Storage Fees: Amazon imposes monthly and long-term storage fees to encourage efficient inventory management. Monthly inventory storage fees in India range from ₹3 to ₹45 per cubic foot, depending on the season. This dynamic pricing model promotes inventory optimization, ensuring that sellers maintain an inventory level aligned with market demand, ultimately minimizing storage costs.
3. Selling Plans: Sellers on Amazon FBA in India have the flexibility to choose between an individual selling plan and a professional selling plan. The individual plan charges a flat rate of ₹0.99 per item sold, while the professional plan comes with a monthly subscription fee of ₹39.99. This versatility empowers sellers to align their selling plans with their business scale and goals, providing an adaptable pricing structure.
4. Referral Fees: Referral fees are a standard contribution from sellers based on the selling price of the product. In India, sellers typically pay referral fees of 5% of the product’s selling price. This fee structure permits sellers to leverage Amazon’s extensive customer base and advanced e-commerce infrastructure for mutual benefit.
5. Returns Processing: Returns processing is seamlessly integrated into the fulfillment fee for products without free returns. This inclusion not only simplifies the returns process for sellers but also enhances the overall customer experience, contributing to positive reviews and repeat business.
6. Inventory Removal and Disposal: If a seller decides to discontinue the use of FBA, managing inventory removal can incur costs. Amazon charges ₹10-₹25+ per shipment for removing and returning inventory or disposing of it, depending on the shipment’s weight. This clear fee structure will offer sellers with insights into the costs associated with transitioning out of the FBA program.
7. Unplanned Service Fees: Unplanned service fees highlight the significance of adherence to planned fulfillment processes. Amazon charges fees for services like unplanned storage, pick and pack, and shipping deviations. This encourages sellers to maintain operational efficiency, limiting unplanned costs associated with deviations from established fulfillment workflows.