Fulfillment by Amazon Calculator Usa
Selling on Amazon through Fulfillment by Amazon (FBA) can be a great way to reach millions of customers, but understanding the costs is crucial. Our Fulfillment by Amazon calculator helps you estimate shipping costs, fees, and storage expenses for your products in the USA.
How Fulfillment by Amazon Works
Fulfillment by Amazon is a service that allows sellers to store their products in Amazon's fulfillment centers and have Amazon handle the shipping and customer service. Here's how it works:
Key Benefits
- Access to Amazon's vast customer base
- Professional packaging and labeling
- Prime eligibility for your products
- Customer service and returns handling
- Inventory management tools
The Process
- You send your inventory to an Amazon fulfillment center
- Amazon receives, stores, and prepares your products
- Customers place orders through Amazon
- Amazon ships the products to customers
- Amazon handles customer service and returns
Note: Fulfillment by Amazon is only available to professional sellers with a good sales history. Amazon may require you to meet certain criteria before you can use this service.
Key Fees and Costs
When using Fulfillment by Amazon, you'll need to pay several fees and costs. The main categories are:
1. Referral Fees
These are fees Amazon charges for listing your products on their marketplace. The exact percentage varies by product category.
2. Fulfillment Fees
These cover the costs of picking, packing, and shipping your products. The fees vary based on product size and weight.
3. Storage Fees
Amazon charges for storing your inventory in their fulfillment centers. The rate varies by the size of your products.
4. Long-Term Storage Fees
If your inventory remains in Amazon's fulfillment centers for more than 365 days, you'll be charged additional long-term storage fees.
Formula for Estimated Monthly Cost:
Monthly Cost = (Referral Fee + Fulfillment Fee) × Number of Units Sold + (Storage Fee × Number of Units in Inventory)
Worked Examples
Example 1: Small Product
Let's calculate the estimated monthly cost for a small product (under 1 lb) with these assumptions:
- Referral fee: 15%
- Fulfillment fee: $2.50 per unit
- Storage fee: $0.50 per cubic foot per month
- Product dimensions: 5" × 5" × 2" (0.0417 cubic feet)
- Units sold: 100
- Units in inventory: 50
Monthly Cost = (0.15 + 2.50) × 100 + (0.50 × 0.0417 × 50) = $165 + $10.42 = $175.42
Example 2: Large Product
For a large product (over 1 lb) with these assumptions:
- Referral fee: 12%
- Fulfillment fee: $3.20 per unit
- Storage fee: $0.75 per cubic foot per month
- Product dimensions: 12" × 12" × 12" (1.728 cubic feet)
- Units sold: 50
- Units in inventory: 30
Monthly Cost = (0.12 + 3.20) × 50 + (0.75 × 1.728 × 30) = $170 + $38.54 = $208.54
Frequently Asked Questions
What are the minimum requirements to use Fulfillment by Amazon?
Amazon requires professional sellers to have a good sales history and meet certain criteria. You'll need to apply through the Seller Central portal and provide business information.
How do I calculate my exact FBA fees?
Amazon provides a FBA Fee Preview tool in Seller Central that gives you an estimate of your fees based on your product's size, weight, and category. Our calculator provides additional estimates for storage costs.
What happens if my inventory stays in Amazon's fulfillment centers for more than a year?
After 365 days, Amazon will charge you long-term storage fees. The rate varies by product size, typically ranging from $1.50 to $3.00 per cubic foot per month.
Can I use Fulfillment by Amazon for all my products?
No, you can choose to use FBA for some products and fulfill others yourself. Amazon also offers Fulfillment by Merchant (FBM) for products you want to ship directly from your own inventory.