Fulfillment by Amazon (FBA) from Amazon is a great way for e-commerce businesses to grow because it makes transportation easy and gives them access to Amazon’s huge customer base.  However, FBA fees such as fulfilment, storage, promotion, and advertising fees can have a big impact on profits.   Sellers can lower these fees and make more money in the end by using tried-and-true methods.

How to Understand Amazon FBA Fees

Amazon FBA fees change based on several factors, including the size, weight, type, and length of keeping of the item.  Here are some details about the main types of charges:

Fees for Fulfillment

Fees for FBA fulfillment:  The whole process of picking, packing, and sending the items is covered.   Fees depend on the size of the item (Small standard, Large standard, Large heavy, or Extra-large) and the weight of the shipment (unit weight or measurement weight, whichever is greater).

Low-Price FBA Fees: Sellers get lower fulfillment fees for items that sell for less than $10.

Clothing and dangerous materials have different fee plans.  Depending on the weight, fees can range from $3.27 to $231.61+.

Fees for storing inventory

Monthly storage costs range from $0.56 to $4.28 per cubic foot, based on the time of year and the type of goods being stored.

There are fees for long-term storage that are $6.90 per cubic foot or $0.15 per unit for items that are kept for more than 365 days.

Aged Inventory Surcharges: These are fees that are added to items that have been stored for 181 days or more, and the fees go up every cubic foot.

Referral Fees: These fees depend on the type of product and are generally between 5 and 45 per cent of the sale price.

Seller Fees: The Professional Plan costs $39.99 a month, and the Individual Plan costs $0.99 per item sold.

To better control costs and make the most money on Amazon FBA, you need to know about these fees.

Enhance the management of your Amazon FBA inventory

To cut down on storage costs and avoid old inventory surcharges, it’s important to handle your inventory well.  Here are some of the most important plans:

Look at the speed of sales:  Use tools like SoStocked to correctly guess what people will want and avoid having too much or too little stock.

Keep the right amount of inventory on hand:  To keep long-term storage costs as low as possible, keep enough goods on hand to cover 60–90 days of sales.

ABC Analysis: Put resources first on high-value, high-demand items so that you can focus on making money-making items.

Use Amazon’s Removal Order service to get rid of stock that isn’t selling quickly before you get charged extra.

Inventory management systems that are based on data help sellers improve processes and cut costs that aren’t necessary.

Use programs that help you save money

Amazon has several tools that can help businesses lower their costs, including:

Through the Partnered Carrier Program, you can get lower shipping costs for packages going to Amazon fulfillment centers.  This scheme makes operations easier and cuts down on the cost of transportation.

Low-Price FBA Rates: Sellers can get lower fulfilment fees for things that cost less than $10.

Labeling without Stickers: Ship things with barcodes from the manufacturer to save money on labeling costs.

These programs not only lower fees but also make managing the supply chain more efficient.

Lower the fulfilment fees. The fulfillment fees depend on the size of the product and how much it weighs to ship.  Sellers can keep these costs as low as possible by:

• Smaller Packaging: To lower physical weight charges, use small, light packaging.
• Bundling Products: Put several things in one package to lower the cost of fulfilling each unit.
• Size of the monitor:  Check the size of the goods against Amazon’s records regularly to avoid being overcharged because of incorrect measurements.

Using tools like the Amazon FBA Revenue Calculator can help you figure out how much fulfilment charges will be ahead of time and avoid confusion.

Use FBA Reimbursement Services to your advantage.

Amazon makes mistakes when it comes to figuring out fees or keeping track of its stock.  Sellers can get the money they’re owed by using specific refund services, like what Invomize offers.

Since buyers have 18 months to file claims, acting quickly is essential for getting the most money back.

Look at your storage options

During busy times of the year, like October through December, storage fees are higher:

• Non-Peak Discounts: From January to September, standard-sized items can be stored for less money.
• Logistics run by a third party (3PL):  When Amazon’s prices are higher during busy times, use storage choices that are not on-site.
• Slow-moving merchandise promos: To get rid of extra merchandise before charging aged inventory fees, run promos or use Amazon Outlet.

By planning how they will get rid of their goods, buyers can avoid paying extra storage fees.

 Maximize the cost of advertising

 PPC ads on Amazon are necessary to make sales, but they can get pricey if they aren’t handled well.   Sellers need to:

•  Search for low-cost keywords:  Use Helium 10 and other tools to find keywords that get a lot of searches but aren’t too competitive.
• Watch how well your ads do:  Review campaign data regularly so that you can make bid changes and improve your return on investment (ROI).
• Use the Brand Referral Bonus Program to your advantage:  Get a 10% discount on referral fees when you send people from outside of Amazon.

Strong promotion not only speeds up sales but also makes up for the higher costs of doing business.

Hire an Amazon FBA company

Working with an experienced Amazon FBA Agency gives you expert advice on how to lower your fees.  They can help with:

• Audits of inventory
• Analysis of fees
• Managing an advertising effort
• Claims for reimbursement

With their help, sellers stay in line with Amazon’s rules and make the most money possible.

There are a lot of different things that can be done to lower Amazon FBA fees, such as keeping track of goods, running cost-saving programs, improving fulfilment, getting reimbursements, and making advertising work better.  With these steps, buyers can handle the complexities of FBA while keeping their profit margins high.

Whether you’re a seasoned seller or new to the platform, it’s important to understand how fees work and make the most of the tools that are available if you want to do well in the competitive world of eCommerce.  Partner with Invomize to maximize your profitability through expert Amazon FBA Inventory Management.