Amazon opened up a convenient service for its current sellers to scale their business operations through Fulfillment by Amazon, commonly known as FBA. As an Amazon seller, you might be asking yourself, “how much does Amazon charge for FBA?” “how will I get reimbursed if they handle the packing and shipping to my customers?” or “how will I get reimbursed for the FBA setup?”
Worry no more because this article will cover the Amazon FBA Reimbursement Policy and all the fees you need to know.
Amazon selling requires a lot of fees for FBA sellers to pay and this rule is expected since it is the biggest online shopping platform of today. However, sellers need to know about the Amazon FBA Reimbursement Policy to see the exact details they need to know before availing of the FBA service. Simply put, how much do Amazon charges FBA sellers depend on these main factors: type of product, packaging size, shipping weight, and inventory storage. Let us look at them down below.
Amazon categorizes FBA products as apparel and non-apparel. To clearly define apparel, it is a kind of item that consists of clothing, accessories, and footwear. For the non-apparel, this may vary a lot from anything you can think of as long as it is not apparel. This sorting system makes product size tiers easier to categorize, which will be explained more on the point below.
Apparel and non-apparel products have different packaging size tiers mandated by Amazon. Both start with the smallest lowest tiers, FBA Small & Light (Small Standard and Large Standard variants), and Small Standard and Large Standard. After that, the difference between the two starts – non-apparel products have succeeding product size tiers, the Oversizes (Small, Medium, Large, Special). Take note that these sizes are mentioned from the smallest to the largest dimension-wise.
Looking back at the Product Size Tiers, you will see that shipping weight is related to packaging dimensions. FBA Small & Light for Small and Large Standards each have two shipping weight tiers: 6 oz or less and 6-12 oz. Meanwhile, the Small Standard and Large Standards have three and six shipping weight tiers, respectively. Under the Oversizes, only one shipping weight tier is under each of them.
To conclude, the higher the shipping dimensions and weight, the more expensive fees it will cost. Look at the whole FBA dimensions, weights calculator, and table here on the Amazon Seller Central page
Amazon asks for inventory storage fees for the goods of FBA sellers that occupy their fulfillment centers. This fee is based on the daily average volume of space in terms of cubic feet. Rates are differentiated into Standard and Oversize (Packing size, see above). For January to September, the standard rate is at $0.75 and $0.48 per cubic foot, while from October to December, the standard is at $2.40, and oversize is at $1.20.
Remember that Amazon has different pricing for dangerous goods and inventory that have been stored for more than 365 days, specifically identified as long-term storage.
Knowing all these fees may be overwhelming for you, but this is why there is Amazon FBA Reimbursement Policy. In this policy, lost or damaged FBA inventory may be reimbursed to you in four specific scenarios:
During these cases, Amazon takes full responsibility for the protection of goods. Maintaining their sellable condition and delivering them to your customers are their duties with the FBA service availed. It is then your right as an FBA seller to get reimbursed for the fees you paid whenever Amazon makes a mistake of causing damages to your goods.
We hear you. Being an Amazon seller is not an easy profession. It takes a lot of knowing the ins and outs of the platform, including all about FBA. So if you want to know if FBA is the right path for you as an FBA seller or if you are in a dilemma to get an FBA refund, we are here to help. You may check out Amazon FBA Reimbursement Service to ease your stress.
Whether you may just be starting, expanding your business, or at your peak, seeking excellent opinions and strategies from a panel of Amazon selling experts will never be a wrong move. Here in Seller Interactive, we value the resources of each potential client we talk to. We go over all the records you have, right to the very tiny details, so that you can attain peace of mind. So please shoot us an email at [email protected]!
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