FBA Amazon is the most popular business model for many Amazon sellers. That’s because by operating under FBA, you can be sure that everything within your business goes in the right direction. In order to run a successful FBA business, sellers should be aware of all changes within this platform. That’s why Jerome Basilio’s team updates some information concerning FBA fees in 2021.
Generally, when one decides to launch an FBA business, the first question that comes to his or her mind is “How much will it cost?” In order to provide you with answers to all your questions concerning FBA fees, we have collected all the necessary information on this topic.
Everyone Pays!
It doesn’t matter whether you are an FBA seller or you prefer to run your business by yourself under the FBM model, things remain constant: you have to pay Amazon Referral fees anyway. A referral fee is a commission that Amazon sellers pay for each product sold through Amazon.
Generally, there are two types of Amazon accounts:
- An Individual Seller Account
- A Professional Seller Account
Depending on the type of seller account, whether it is a seller, or an individual one, you have to pay a per-item fee. Professional sellers may only pay a monthly subscription fee of $39.99.
There is also a refund administration fee which appears when a customer asks for a refund. Usually this fee is 20% of the refunded charge.
Generally, Amazon charges fees from your Amazon account balance or from your credit card.
Fees for FBA Sellers!
Compared to other Amazon sellers, those who are running their business under the FBA model are exempt from paying for shipping, storing and packaging your products. That’s because Amazon will handle these issues instead of you. However, Amazon will charge an FBA fee, which depends on the weight and size of your product.
FBA Storage Fees
These fees will hit you because Amazon stores your goods in its warehouses. Generally, there are two types of FBA fees, monthly and long-term.
Monthly Storage Fees
If your goods are kept in Amazon’s warehouse until the end of the month, you have to pay a monthly storage fee. Warehouses are busy places!
Long-term Storage Fees
For each item which has gotten stuck in Amazon’s warehouses for more than 180 days, Amazon charges long-term storage fees. If your products have been in Amazon’s warehouses more than 365 days, you have to pay $.15 for each item. These fees are charged from your seller account balance or a credit card account.
Fees for FBM Sellers
There are no fees solely for FBM sellers; however, the cost of success for FBM sellers is higher since they can face additional costs for packing, shipping and storing their inventory. Plus, they have to handle everything concerning customer service. Therefore, most Amazon sellers prefer to run their business under the FBA model.
In accordance with the above-mentioned, you can see that it doesn’t matter whether you choose Fulfilment by Amazon (FBA), or Fulfilment by Merchant (FBM). You have to pay Amazon in any case. The choice is yours! Before choosing the right option, try to consider all the pros and cons of both models, in order to pick the best one.
During many years, Jerome Basilio’s team has provided its clients with high-quality service. We are open to help you invest your money in the right business, or build an Amazon FBA business from scratch. Also, our team will help you build trustworthy relationships with wholesaler suppliers you can confidently cooperate with for the growth of your business!
