amazon fba fees

Table of Content

Chapter 1 Choose the profitable products to sell on Amazon FBA

Chapter 2 Understand the corresponding fees and marketplace rules of Amazon FBA

Chapter 3 Make sure that the quality and packaging of your products meet Amazon’s requirements

Chapter 4 Always check your stock

Chapter 5 Be flexible with Amazon rules

Before starting selling on Amazon FAB, many sellers don’t know what is Amazon FBA.

In this article, we will explain everything you need to know about it from where to start, what are the profitable products, Understanding the corresponding fees and marketplace rules of Amazon FBA, to how to make sure that the quality and packaging of your products.

amazon warehouse checking

Amazon FBA brings so much convenience and eases to sellers. Not only because they do not need to worry about logistics, but also they could have more time to manage their stores and other business-related management.

Due to the extensive benefits of Amazon FBA, more and more people desire to join it, but there are also some risks of selling on Amazon FBA, which are as follows:

The return policy of Amazon is simple, and many customers often do that so that you can get a higher return rate.

If your business is tiny, then you might not be able to keep up with the pace of Amazon and its storage fee.

You can face some product handling issues as well by Amazon due to the tremendous amount of merchandise they get from all over the world.

If you manage to overcome these risks, you can successfully sell your business on Amazon FBA.

To help you avoid these risks, we have put up a list of five important key points to understand and consider before selling on Amazon FBA.

pros cons of selling on amazon fba

Amazon is made up of a lot of people, brands, and companies selling products for profit. Being a third-party seller, if you want to sell your products on Amazon through FBA, the following are some essential things to understand and keep in mind beforehand:

Chapter 1: Choose the profitable products for selling on Amazon FBA

It is very important to keep in mind that a profitable product does not mean a perfect product that will provide your business without effort or hard work.

There is no such thing as a “perfect product.” In the pursuit of a perfect product, most people get stuck and do not start at all.

amazon fba costs

Products right for selling on Amazon FBA:

The specific patterns of products selling on Amazon indicate the most popular types of products, and we are providing you with the inside scoop regarding that.

Niche or hobbyist products

Niche or hobbyist products are specific to the unique needs of a particular type of user that makes it different from the rest of the market.

These kinds of products are less likely to be carried or fulfilled by Amazon itself. Thus, you may have a better chance of grabbing the Amazon marketplace.

Used or refurbished products

The used or refurbished products are an entire industry, and it is recognized as a separate department. There are plenty of advantages of selling used or refurbished products on Amazon FBA.

Not all people afford high-quality products, and they look for refurbished or used products.

This is a great way to earn customers’ trust as well as the seller’s performance, which will not only improve your overall metrics, but it also provides you to recognize the used and refurbished products with more need, such as mobiles, laptops, other electronics devices, etc.

Unique or original products

Some items on Amazon sell more frequently than others, and by far, the most successful sellers are the people who sell such things that are only unique to their brands, and no other sellers offer the same kind of product.

This could be either your own developed product or you possess the sole selling rights of it. If you think you have a unique idea or product, then Amazon FBA will be a perfect platform for you, and your product sale will take off.

Products wrong for Amazon FBA:

Some products will increase your sales; on the other hand, there are also some of the products which are wrong for Amazon FBA, as mentioned below.

Small sales volume

We don’t advise you to sell products with small sales volumes on Amazon FBA because they may have low demand of customers and the profit margin is small.

Therefore, before you start selling on Amazon FBA, you need to make sure that the products you sell have certain sales volumes.

Small profit margin

Cheap products always have a low-profit margin, and they are only valuable when you sell them in abundance. If the profit margin of your product is ordinary, then cheap products will not do much good for your business.

For example, if the retail price is less than 7$, it is not suitable for FBA because of certain charges amount of basic fee for each trade which adds too much cost to the seller and makes it completely unprofitable.

Oversize products

Big and bulky products such as big generators and machinery are usually costly, and there are multiple disadvantages involved in selling them, such as a small number of sales, higher fees, high risk, etc.

Moreover, people want to buy an oversize item by going to outlets physically. There is a lesser chance of selling oversize, too-heavy, or big products than the normal ones.

Amazon often adjusts FBA fees, and some sellers will find that the prices for oversize products are increasing. If your product is too large or too heavy, then it is not suitable for FBA.

Seasonal products

There are several downsides to go for seasonal products on Amazon FBA because it is based on the sales forecast. If a product is specific to the season, then it can cause a couple of difficulties.

If you receive a large number of orders but the inventory is not enough to suffice, then your product will go out of stock.

If you have a large number of products in your inventory and you receive an insufficient quantity of orders, then you will experience dull of sale.

Extremely functional products

Products with a lot of moving parts and mechanics involved are risky to be chosen for selling on Amazon FBA. The return policy and process of Amazon are straightforward.

Thus, a high return rate will occur. These functional products are generally delicate, and they are not an excellent choice to sell on Amazon FBA.

Prohibited products

Some products are officially forbidden from Amazon management, such as alcoholic beverages (include non-alcoholic beer), gift certificates, gift cards, vehicle tires, Kongming lanterns, etc.

Chapter 2: Understand the corresponding fees and marketplace rules of Amazon FBA

selling online on amazon fba

If you want to work with Amazon FBA, you will have to pay a flat fee per unit, which depends on the weight and the size of your product.

Amazon is the world’s most famous and biggest e-commerce platform; you will have to pay them for their services because you know that your business will grow.

FBA Fees

Total FBA fee consists of three further categorized fees which are as follows:

FBA Fees Equation = (Execution Fee) + (Storage Fee) + (Storage Inventory Placing Service Fee);

Execution Fee: Execution fee as names suggest is for the execution purposes of the whole process, and it further divides into three parts.

Execution Fees Equation = (order processing fee) + (sorting and packing fee) + (weighing and handling fee);

Order Processing Fee

Sorting and Packing Fee

Weighing and Handling Fee

Storage Fee: Amazon stores your inventory in its fulfillment centers and charges its clients the storage fee. There are two types of storage fee, which are as followed:

Monthly Storage Fee: It is further divided into three factors which times with one another to finally calculate the monthly storage fee.

Monthly Storage Fees Equation = (quantity of goods requiring 6 months ‘long-term storage fee)×(unit quantity of goods)×(monthly storage fee per cubic meter)

amazon prime

Long-term Storage Fee: It is also further divided into th