Amazon FBA: Fees, Size, Weight
Amazon is part of an incredibly successful business model. You just have to attend to your earnings to realize that it is a benchmark at a business level.
Perhaps the secret is perseverance and effort to establish itself as one of the most renewed businesses in which any entrepreneur can participate. And it is that Amazon reaches all parts of the world, sells products of all kinds and offers enormous visibility, what more could you ask for?
Also, the latest trend that is booming among people who want to sell their products is Amazon FBA. What is Amazon FBA and how does it work? Here we tell you!
What is the Amazon FBA?
What does FBA mean? The acronym stands for "Fulfillment By Amazon", which is a system that Amazon has launched so that sellers can benefit from the following services: receive products, store products, send products, manage returns and customer service.
In other words, the only thing that the professional seller will have to do is send the products to the ecommerce giant and everything else will be handled personally by his team. The truth is that at first glance it seems a very viable alternative to facilitate the seller's work as much as possible.
In fact, most of the work to be done will be developed by Amazon, so the seller will act as if it were just another supplier of products. From here we are going to update you on how it works and the steps you have to take as a seller to access their services.
How much does Amazon charge for FBA?
Once you know what Amazon FBA is, now you will be interested in knowing what the platform charges its customers.
The company is fully responsible for the product delivery process, which is why it involves an additional cost for sellers that must be carefully studied. We have prepared a summary list of Amazon FBA fees to assess if it really pays you:
FBA account
To access the FBA services, you must activate your seller account on Amazon, the cost of which is € 39 excluding VAT.
Warehouse cost
Amazon takes care of distribution, but also warehousing, which entails yet another expense. Typically, the vendor's inventory storage fee is charged on a monthly basis depending on the space the products occupy in their fulfillment centers. To calculate this, the company uses the measurement of the average volume in cubic feet based on the size of the products packed, ready to ship.
Long-term storage fee
For inventory products that remain in its warehouses for more than 365 days, Amazon charges a monthly fee. For non-multimedia products, the cost will be € 170 per cubic meter or € 0.10 per unit.
Other costs
In this case, occasional expenses such as advertising campaigns or those considered minimal such as labeling would enter.
Commissions made per sale
For each sale obtained through Amazon, the company will charge Amazon between 8 and 15% of the total cost of the product sold. The percentages used will depend on the category in question.
Shipping costs
The logistics management fee will depend on the dimensions and weight of each shipment. To calculate this, Amazon uses different types of package sizes. Of course, it will also influence if it is a national seller, as shipments will be easier to do. For example, when the company offers small products for sale, whose price is less than € 10, Amazon offers the service "Small and light products", although to access it, the seller must meet a series of basic requirements .
Returns
Returns mean losses and online purchases can pose a greater risk, since the buyer cannot feel the product before making the purchase. In these cases, Amazon will charge a fee to the seller for processing returns, which will be similar to the previous fee.
As you have seen, there are several factors to take into account when deciding or not for an Amazon FBA account. Either way, you have the Amazon FBA calculator, which will guide you in knowing the amount to pay Amazon for your products.
How to become an Amazon reseller?
If you already know what products you want to sell on Amazon and you are aware of how Amazon Seller works, the next thing you have to do is register, providing certain information such as the country, the type of business you have, as well as your personal and bank details.
Remember that there are 2 different types of accounts for you to choose the ideal one, individual and professional seller, although most sellers tend to bet on the professional account. However, if you are just starting out, you may want to try the individual account and move on to the pro later.
Either way, follow these steps and you will become a good Amazon reseller:
Create a product listing
If you want to add your first product, go to the "Inventory" section, click on "Add a product". Now you must search for the product in question, putting its name or adding its EAN code or barcode. Searching for it will most likely bring up different options that belong to other competitors, select the product in question and fill in the missing information. If no product similar to the one you want to sell appears, create a new listing with the most suitable category and subcategory to put it up for sale from there, and fill in the information fields with the title, weight, brand, etc.
Upload good product images
In this step it is essential to provide quality photos because it is the first thing that potential buyers will notice. Make sure the image is a good size and the product looks good. From here we recommend that you invest as much time as necessary to do so. That way, your products will look attractive and returns will be reduced. To ensure correct product images, photograph the product from different angles, add a soft background, and trim the margins so that the product fills the entire image.
Put competitive prices on products
Establishing the price of each product is something that you should think about very well to boost the number of sales and positively influence the return on investment. Before setting each price, take into account the costs derived from the product and the profit margin you want to obtain. It is also important that you analyze the competition and inquire to find out what price they are setting for your products or for items with similar characteristics. If users find that another seller sells the same product cheaper, they will buy it from him instead of you. The same happens in the case of external sellers, outside of Amazon, who have their own online stores, because you will also have to compete with them.
Ship the goods on our own or have Amazon take care of it
Once the user has purchased your product, Amazon will send you an email, as well as a notification in your seller panel. In the order details you will have access to the buyer's data to make the shipment within the established period. However, you also have the option of Amazon taking care of both shipping and possible returns, which as we have already explained is the case of the FBA service.
Receive income
In own online stores, the payment gateway is linked to the seller's bank. However, Amazon users will use the online giant's payment methods and also its payment gateways. In this way, Amazon will be in charge of receiving and managing the payments received.
What is the positive? You will not have to configure any POS or put your bank details on the network. What is the worst? That you will not receive your income instantly, but you will have to wait 15 days. However, since customers can return the product upon receipt, Amazon may hold the sale until it has resolved the claim.
How to send merchandise to Amazon FBA?
Amazon's FBA service will prevent unnecessary shipping headaches. Once hired, you should be completely unconcerned, even your customers can count on the "Amazon Prime" service to get free shipping through a subscription. For your part, you must send your products to their warehouses so that they can make the appropriate arrangements and make fast shipments.
It's very simple: to send your products to Amazon FBA, log into your account and create a shipping plan. It specifies the products to send and if it is "Individual products or packaged in case". The individual elements are the boxes that store different products, while those packed in a case, each box contains the same product in the same quantity.
Also, make sure to put the units that exist of each product and create labels to stick them on the corresponding packages. When you fill in the shipping details, choose the company you want to collect the packages, and once Amazon receives them, they will be available on the platform.
