The Detail of FBA Fee You Should Know When Selling on Amazon

Sharline Shaw

Having worked on Amazon for so long, do you really have detailed information about the fees of FBA?

Do you assess product profit based on cost before shipping?

Today, Leelinesourcing will get you all the details about the costs involved in FBA warehousing.

1.FBA Inventory Placement Service Fees

New accounts will most likely be assigned to different Amazon warehouses when FBA shipments created. To deliver goods to a fixed warehouse address, you need to set up the inventory placement service by a backstage operation. Of course, the inventory placement service will also be charged.

Rate:( per piece)
After the FBA shipment created, close the inventory placement service in time. Open the service again when needed. Compared to the high cost of shipping goods to different warehouses, it can save a lot of costs to set up inventory placement service.

Suggested reading: FBA Shipping From China to Amazon

2.FBA Storage Fee

FBA storage fees include Monthly Inventory Storage Fees, Long-Term Storage Fees, Minimum Long-Term Storage Fees.

The monthly storage fee will be charged start 7th to 15th of the next month.

Rate: (per cubic foot)
3.FBA long-term storage fees

In the past, FBA would count once every year on February 15 and August 15.
Do you think it will be half a year after the long-term storage fee is calculated on August 15? No, starting September 15, Amazon begins calculating long-term storage fees on the 15th of each month.

The following is the specific charging standards.
On August 15, 2018, Amazon will introduce a minimum charge of $0.50 per unit per month for items in fulfillment centers for 365 days or more. The greater of the applicable total long-term storage fee or the minimum long-term storage fee will be charged.

This is not the end of the story. Beginning July 1, 2018, Amazon limit access to storage for sellers with an Inventory Performance Index below 350.

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4.Inventory Storage Overage Fee

Storage limits are evaluated every 3 months for factors such as: 1) your sales volume, 2) your historical Inventory Performance Index scores, and 3) available fulfillment center capacity.
Storage limits are determined based on your Inventory Performance Index on two dates during the quarter: 1) Six weeks before the end of the quarter; and 2) the final day of the quarter.
5The effective dates for the associated storage limits:
Be sure to check your inventory limits in the background. The charges can be quite staggering if limits are exceeded.

5.Cost of removal and destruction of product

If your FBA inventory is large, you will incur large amounts of storage costs. Consider clearing the goods by various means including promotion, removal, disposal, etc. Of course, removal and disposal will be charged.

The expenses are as follows:
In conclusion, use the FBA fulfillment, in addition to normal FBA delivery processing fees, it could happen FBA Inventory Placement Service Fees, FBA monthly inventory storage fee, FBA long-term storage charges, FBA minimum long-term storage fee, Inventory storage overage fee, removal and disposal fee.

So at the start of any project, make sure you carefully assess costs, make good coping strategies, and reduce the project risks.

If you have any other questions or need some help in selling or sourcing products in China, please don’t hesitate to contact us. We are the best sourcing Agent Company in China you can trust.

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Article by:

Sharline Shaw

Hey I'm Sharline, the founder of Leeline Sourcing. With 10 years of experience in the field of sourcing in China, we help 2000+ clients import from China,Alibaba,1688 to Amazon FBA or shopify. If you have any questions about sourcing , pls feel free to contact us.

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