FBA Shipping Costs: Hidden Fees Every Amazon Seller Should Know

The Amazon Fulfillment by Amazon (FBA) service makes selling any product on Amazon very easy by providing various services, including storage in the warehouse, packing, and shipping. It seems easy, but sometimes hidden FBA shipping costs are applied to your product. This hidden cost can change your profit into a loss in a moment if you’re not careful about it. This blog explains these tricky hidden costs that you must be aware of.

What are FBA Shipping Costs?

FBA Shipping Costs are the general charge that Amazon collects from you to store, pack, and deliver your product to the customer. When a seller uses the Amazon FBA service, it collects your product, stores it in their warehouse, packs it, and delivers it to the customer.

What are the major Types of FBA Fees? 

FBA fees are a necessity because there goes a lot of resources behind packaging and labelling goods to meet Amazon’s requirements. Here are the main types of FBA fees. 

1. Fulfillment Fees

Fulfillment Fees are the extra cost that you need to pay to Amazon for their services of pickup, packaging, and shipping of your products to the customers. Generally, this fee depends on the size, weight, and type of your product. The greater the size and weight, you need to pay more fees.

2. Storage Fee

The fee for the storage of your product is included in the Amazon FBA shipping costs. The storage fee for your product depends on how much space your product occupies in the warehouse. Generally, in October and December (the holiday season), the storage fee is higher.

3. Inbound Shipping Fees

Inbound shipping fees are the cost that is generally paid to send your products to the Amazon warehouse. This cost depends on the size, weight, and the distance it needs to travel.

Hidden cost on Amazon FBA Shipping Costs

Besides these fees, some hidden costs can catch you off guard. Here are these hidden costs:

1. Long-term Storage Fees

If the product you are selling remains in Amazon’s warehouse for a longer time, you need to pay an extra fee for it. If your product stays for more than 365 days, you need to pay this fee.

2. Removal and Disposal Fees

You need to pay an extra charge if your product remains unsold in the warehouse and you want to remove or dispose of it. Whether you want to get it returned to you or just dispose of the product, you need to pay the fee.

3. Low-Inventory-Level Fees

Low-Inventory-Level-Fees is another hidden FBA shipping cost that you need to pay if you don’t maintain enough stock of the product in Amazon’s warehouse. This fee was started in 2024 so that the sellers keep enough inventory. Check your stock levels regularly to avoid this.

4. Return Processing Fees 

If your customer returns the product that you sold to them, you have to pay the extra cost for it too. Amazon will charge you a certain amount to process those products. Generally, products like clothes and shoes are common for return.

5. Lost or Damaged Inventory

Sometimes, Amazon may lose or damage your products while handling them. In case of this, they refund you, but you need to notify them of the issue and request a refund. If you don’t notice, you could lose money without realizing it.

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Conclusion

FBA shipping costs seem normal and simple, but they caught you off guard when you noticed the hidden costs added to them. If you understand these costs, you can run a successful business without extra expenses. You need to be careful about the hidden fees, like long-term storage fees, removal and disposal fees, return processing fees, etc. Partnering with the best sourcing agent in China helps you to stay away from the hidden costs.

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