Amazon FBA Analytics to Calculate Amazon FBA Fees: Which Fees to Look at?

FBA Fulfillment Fees

Being an FBA seller on Amazon, you don't have to pay for the handling, packaging, and shipping of your goods. You can rest assured that Amazon employees will get the job done! In return, Amazon charges the seller fees to cover the costs based on these factors:

• Product’s size and weight
• The channels where you are selling your products- Amazon or somewhere else
• The type and category of the products

Based on standard and oversized products, the FBA fulfillment costs have come into effect from January 17, 2023, for non-apparel, apparel, and small and light goods.

FBA Storage Fees

Maintaining your inventory can be easier with Amazon but with a few storage fee charges. There are two options for you- Monthly and Long-term. 

Monthly Storage Fees:

Amazon charges a monthly storage fee if you use Amazon warehouse as your inventory. Similarly, like other fees, it will be deducted from your Amazon account or credit card if required. 

However, from April 1, 2023, Amazon has introduced a utilization surcharge for the storage fee based on the storage usage ratio of your daily inventory volume on average in cubic feet and daily shipped volume in cubic feet. And the surcharge ratio will be calculated on the last day of the month and applied to the next month's storage fee charges. 

Long-Term Storage Fees:

On the 15th of each month, Amazon does inventory clean-ups. At that time, they calculate if there is any product in the fulfillment center for more than 181 days. In that case, amazon charges the FBA seller a long-term storage fee based on the product age stored. It is deducted on the same day of each month from your Amazon seller account or credit card.

From April 15, 2023, Amazon has increased the magnitude and granularity for long-term storage fees i.e. aged inventory surcharge, based on the volume of inventory stored within 271 to 365 days. Also, there are new changes in this long-term storage for all products except those under the bags, shoes, clothing, watches, and jewelry category between 181 to 270 days. Amazon charges this aged inventory surcharge if products are stored for more than 365 days.

Have a look at the changes in fees in the 2023 inventory:

The inventory items aged 181 to 210 days in fulfillment centers had no charge applicable before 15th April 2023. But from now on, there is $0.50 per cubic square foot for the items stored in Amazon inventory for these specific time lengths.

Similarly, inventory items stored in fulfillment centers for 211 to 240 days and 241 to 270 days were not charged before, but now, they come with $1.00 and $1.50 per cubic foot, respectively. 

The existing storage fees on the inventory items aged 271 to 300 days, 301 to 330 days, and 331 to 365 days have also increased as the following, respectively:

• $1.50 to $3.80 (increased by 153%)
• $1.50 to $4.00 (increased by 166%)
• $1.50 to $4.20 (increased by 180%)

If we see the average, the existing long-term storage fees are increased by 166%. 

FBA Inventory Removal Order Fees

Using this, the Amazon sellers pull back their inventory items to internal warehouses from FBA fulfillment centers. This removal order is applicable on sellable inventory where items are overstocked or unfulfillable for any inbounding error in packaging or labeling. So, when FBA marks the inventory as unsellable, it’s mandatory to remove it through a manual or automated scheduled removal order. Here are the 2023 changes in the Inventory Removal Order Fees:

• For standard-size items, the charges are $0.97 for the shipping weight of 0 to 0.5 lb. Similarly, $1.46 is charged for 0.5+ to 1.0 lb and $2.20 for 1.0+ to 2.0 lb. And, items more than 2 lb in shipping weight are the removal order fees of $2.83+ $1.06/lb.
• Special handling items, including shoes, jewelry, apparel, watches, dangerous goods, and oversized items, are charged the lowest $3.12 for 0 to 1.0 lb and the highest $13.05 + $1.06/ lb above 10.0 lb. Also, the items that weigh 1.0+ to 2.0 lb, 2.0+ to 4.0 lb, and 4.0+ to 10.0 lb come with $4.07, $5.56, and $9.43, respectively. 

Best Amazon FBA Software Tool to Manage Your Profit Margin 

KwickMetrics is the best business intelligence and analytics tool for Amazon sellers to calculate Amazon FBA fees and other expenses to figure out their profit margins while managing inventory, financial split-ups, and so on more conveniently than ever before!

So, why wait? Get started for FREE today!