How to Contact the Amazon Seller Performance Team (2023 Update)

You’ll have to pay Amazon FBA fees if you plan to use the Fulfillment by Amazon service. With FBA, Amazon will be warehousing your products and shipping orders.

Order fulfillment fees

Fulfillment FBA fees are charged based on the size and weight of your products. The largest and bulkiest products will be the most expensive which tends to make Amazon FBA more attractive to those selling smaller and lighter items.

View all fulfillment FBA fees here on Amazon Seller Central.

Monthly storage fees

Some of the FBA fees come from inventory storage fees. These fees vary slightly based on size and the time of year. From January to September, you can expect to pay $0.75/cubic foot for standard items and $0.48/cubic foot for oversized items.

During the busy holiday months of October to December, these rates jump to $2.40/cubic foot and $1.20/cubic foot respectively.

Long-term storage fees

The monthly storage FBA fees above only apply to those that sell their products in a timely manner. Inventory that sits in Amazon’s warehouse for longer than 1 year is subject to a monthly long-term storage fee of $6.90/cubic foot or $0.15 per unit (whichever is greater) in addition to the standard monthly storage fees.

Summary of FBA fees:

Fulfillment fees: vary by weight, size, and category (see fees here)

Monthly storage fees: $0.48-$2.40/cubic foot depending on size and season

Long-term storage fees: additional $6.90/cubic foot or $0.15/unit (whichever is greater)

Amazon FBM Merchant Fulfillment Fees:

With FBM (fulfillment by merchant), you may have more control over your fulfillment processes than with Amazon FBA.

Also, Amazon FBA fees can be cost-prohibitive for some types of products and niches including heavy and bulky items. With FBM, you’ll have more control over your total Amazon Seller fees in 2022.

You’ll also want to be aware of certain limitations you’ll face regardless of fulfilling your own orders. These include set shipping rates applied by Amazon on individual seller accounts.

Summary of FBM Fees:

Fees will vary based on whether you rent warehouse space, own your own warehouse or hire a fulfillment partner. Overall though, you can generally expect to pay less than the FBA fees quoted above if you’re selling bulky items like furniture or selling items relatively infrequently.

Amazon multichannel fulfillment fees

In this case you’re going to want to add up your Amazon FBA fees, FBM fees, and any other 3PL fees you’ll encounter if you’re using multiple channels for fulfillment.

Miscellaneous Amazon Seller Fees in 2023

It may seem like Amazon seller fees in 2023 just keep coming. Below we discuss a few additional fees sellers may encounter when selling on Amazon.

Refund fees

If someone decides to return a product they purchased from you, then you will be refunded the applicable sales-related fees. However, you will now have to pay a refund administration fee of either $5.00 or 20% of the referral fee, whichever is less.

If refunds are processed through FBA, then you’ll have to pay additional service charges such as repackaging fees.

High-volume listing fee

This fee applies to those selling over 100,000 listed products and is a monthly flat fee of $0.005 per eligible item.

Packaging FBA fees

When using Amazon FBA, you have the option of placing items in your own boxes or using theirs. If you choose to use Amazon’s boxes, then you’ll pay $0.15/unit for items shipped in November and December and $0.10/unit for the rest of the year.

How to calculate your profit margin on Amazon

With such a long list of Amazon seller fees in 2022, it’s best to make sure you have a profitable business model before signing up for Seller Central.

Here, we offer some tips on how to calculate profit margins on Amazon.

Amazon seller profit calculator

If you want to calculate your profit margins, then an Amazon seller profit calculator may be the best tool for the task. This type of calculator will take inputs such as product weight, dimensions, and additional data to calculate your profit margins.

There are many Amazon seller profit calculators available online, but we recommend using Amazon’s revenue calculator and FBA revenue calculator on Seller Central.

How to ensure healthy profit margins

Now that you know how to calculate your profit margin on Amazon, you’ll want to apply a sufficient markup on your product costs to ensure you make a profit on each item sold. This means accounting for all the Amazon seller fees in 2022 as well as any business overhead.

To minimize your business’ costs, you’ll want to simplify your supply chain and focus on efficiency in all areas of your operations. You might even want to consider FBM to circumvent FBA fees if that is a cost-effective option for your product categories.

Finally, it’s always a good idea to hire an Amazon consultant that can provide pricing analyses and expert advice on selling on Amazon.

Conclusion

From FBA fees to an assortment of miscellaneous costs, Amazon Seller fees in 2022 can certainly add up quickly. If you want your Amazon business to be profitable, then you’ll need to factor all these costs into your product pricing, as well as simplify your supply chains for the best chance at success.