Costs of Selling on Amazon FBA
If you sell your own products on Amazon, the Amazon FBA service can relieve you of a large part of your work. Because Amazon takes care of the storage and shipping of your products. So you can take care of sales and marketing, while Amazon takes care of all logistical tasks for you. For many sellers , this offer sounds very tempting. But what does it cost you to use this service?
What is Amazon FBA?
At Amazon FBA (Fulfillment by Amazon) is a system of the online marketplace Amazon. If you offer your own products on Amazon, the online retailer will take care of the appropriate storage, packaging and shipping of your goods – no matter where. All of this happens in the Amazon logistics centers. This saves you a lot of work and effort and you can take care of other areas of your business.
The cost of Amazon FBA
The Amazon FBA service basically consists of two different types of costs: the fee for shipping and the cost of storage. On the whole, you can make it dependent on whether the service is worthwhile for you and your business.
THE SHIPPING FEE
The shipping fee is paid per unit at Amazon FBA . The amount of this fee depends on the various factors of storage location, product type, dimensions and weight. Amazon provides a total of ten different packaging options, the costs of which depend on the weight of the product. Small and light products up to ten euros get cheaper conditions with the Small & Light program from Amazon.
Since Amazon’s logistics network has now been expanded, products are not only stored in Germany , but also in the Czech Republic and Poland. If you want your products to be stored exclusively in Germany, there is an additional fee of 0.50 euros per item. The small and light items cost € 0.30 extra. On the Amazon website you will find a shipping fee calculator that you can use to calculate exactly how much it would cost you to ship your products.
THE STORAGE FEE
The storage fee is calculated from the area you need for your products in the Amazon logistics center. This is based on the average daily storage volume in cubic meters per month and differs in low season and high season. The low season runs from January to September and the high season from October to December. In addition, a distinction is made between clothing and shoes and other products. Of course, there are additional costs if you need an oversized storage area. This results in the following prices per cubic meter:
- Clothing and shoes
- January to September: 15.60 euros
- October to December: 21.60 euros
- Other products
- January to September: 26 euros
- October to December: 36 euros
- January to September: 18 euros
- October to December: 25 euros
THE AGENCY FEES
In addition to the shipping and storage fees, there is an agency fee, which is based on the product category and relates to Amazon sales. This is withheld directly in the event of a sale, i.e. deducted from your profit. You can easily see how high the fees are for the respective products on the Amazon website .
Whether the Amazon FBA offer is worthwhile for you depends heavily on the fees and costs. Here you should decide individually for yourself whether the service is worthwhile for you or whether you organize the whole thing for yourself. It mainly depends on the number of products sold. So it’s best to try out the calculator on Amazon and find out for yourself what exact costs will be incurred and whether Amazon FBA is worthwhile for you.
Frequently asked questions (FAQ) about Amazon FBA
What is Amazon FBA?
Amazon FBA (Fulfillment by Amazon) is a system of the online marketplace Amazon. Here you can offer your own products and Amazon takes care of the storage, packaging and shipping of the products. This saves you a lot of work and you can concentrate completely on your marketing.
What does Amazon FBA cost?
The cost of Amazon FBA can be broken down into three factors: shipping fee, storage fee, and agency fee. How much each item costs depends on various factors and the types of products you are selling. There is an overview on the Amazon site that makes it easy to calculate the costs.
What do you need to get started with Amazon FBA?
If you want to get started with Amazon FBA, you first have to register a business, open a business account and apply for a tax number. You also need an EORI number if you want to import goods into the EU.