In case of FBA (Fulfillment by Amazon), apart from the Amazon referral fee, closing fee (which is reduced in case of FBA) & shipping charges (also called FBA Weight handling charges), Amazon also charges some other FBA specific fees. This includes:
- FBA Pick and Pack Fee
- Storage Fee
- FBA Disposal Fee
Below are the complete Fee details for FBA. All Fee details given here are excluding taxes. Additional 18% GST is charges over these fee.
Table of Contents
Closing Fee for FBA
Closing Fee is an additional fee that Amazon charges on top of referral fee based on the price range. You can refer the below mentioned for the fixed closing fee for FBA:
| Fixed Closing Fees (INR per unit) | ||
|---|---|---|
| Item Price including Shipping Charges (INR) |
FBA Closing Fee | |
| 0-250 | 25 | |
| 251-500 | 20 | |
| 501-1000 | 12 | |
| 1000+ | 26 | |
For Referral charges and Fixed Closing Fee for Self Ship & Easy Ship, and Easy Ship charges, please see AMAZON SELLER COMMISSION CHARGES IN INDIA
FBA Shipping Fee or Weight Handling Charges
| Shipping Fee (Weight handling fee) in INR based on outbound shipping unit weight | ||||
|---|---|---|---|---|
| Local | Regional | National | ||
| Standard | First 500 gms | ₹28 | ₹38 | ₹58 |
| Each additional 500 gms upto 1kg | ₹16 | ₹21 | ₹26 | |
| Each additional kg after 1kg | ₹13 | ₹18 | ₹24 | |
| Each additional kg after 5kg | ₹10 | ₹11 | ₹15 | |
| Heavy & Bulky | First 12Kg (minimum) | ₹166 | ₹251 | |
| Each additional Kg after 12kg | ₹4 | ₹5 | ||
*These charges are for Standard Seller Category only, applicable for all new sellers.
Download complete Shipping Fee Details here -> Amazon FBA Shipping Fee – STEP program
After introduction of STEP program, sellers have been classified into different categories and shipping rates vary based on seller category you belong to.
FBA Weight Guidelines
An item is classified as Heavy & Bulky Item if:
- Max (Length, Width, Height) > 72” or 183 CMs OR
- Weight > 22.5 kg OR
- Girth > 118” or 300 CMs #Girth = [Length + 2*(Width + Height)]
All other items will be classified as Standard Size.
*As of now, Amazon does not provide Easy Ship Facility at National Level Deliveries for Heavy & Bulky items.
FBA Storage Fee
Since, in case of FBA or Fulfillment by Amazon, you use Amazon’s warehouse for storing your inventory, Amazon charges a small Storage Fee per cubic foot/month. It is based on the total volume of space occupied by your inventory in Amazon warehouse irrespective of the size of individual product.
FBA Storage Fee: INR 20 per cubit foot/month
FBA Pick and Pack Fee
In case of Fulfillment by Amazon, it is the Amazon executives that pick and pack your orders before they can be shipped.
So there is an investment of time and effort from Amazon team that goes into fulfilling your orders apart from the shipping expenses. Thus Amazon also charges a small FBA Pick and Pack Fee which is as below:
| Package Size | Pick & Pack Fee (INR) |
|---|---|
| Standard | INR 10 |
| Heavy & Bulky | INR 50 |
As you can see in the above table, the FBA Pick and Pack Fee varies by the package size. This is because bulkier the package, more effort or resources it will take to handle it. This package size is also as per the size guidelines given above.
Removal and Disposal Fee
Sellers often confuse these two terms.
Removal is when you want to remove the inventory from Amazon warehouse and bring it back to your warehouse or store.
Disposal is when you want to dispose of the inventory entirely, i.e. discard it. In this case you tell Amazon that you don’t intend to sell the products any longer, it is a dead inventory for you and you want Amazon to just dispose off the products. Amazon no longer charges FBA Disposal Fee.
FBA Removal Fee
In case you want to remove your inventory from the Amazon warehouse or Fulfillment Centers, i.e. bring back your inventory, Amazon charges FBA Removal Fee. This is again to cover the effort and time investment of Amazon executives plus the shipping involved.
FBA removal fee is also based on the size of the package and shipping method.
| Item Size |
FBA Removal Fee per unit excluding GST (INR) |
||
|---|---|---|---|
| Self Pickup | Standard Shipping | Expedited Shipping | |
| Standard | 10 | 10 | 30 |
| Heavy and Bulky | 100 | 100 | N/A |
Note:
- FBA Removal fee is charged per unit
- In case of Heavy and Bulky items, Expedited Shipping Removals are not available.
- In case of Self Pick up and Standard Removal, Amazon offers a zero Removal Fee for the first three months (from the date of your first shipment to Fulfillment center). However, this offer is not applicable for Expedited Removals.
FBA Disposal Fee
Amazon used to charge a FBA Disposal Fee – a fixed fee charged per item, when you request Amazon to dispose off the inventory.
Amazon no longer charges any FBA Disposal Fee.
There are times when you simply want to dispose off the inventory because it is cheaper to do that than storing it in Amazon warehouse or getting it back to your warehouse.
This happens usually when your products are not sellable anymore example, they are already past the expiry date.
Also sometimes you realize that it is way more expensive than just discarding the inventory and starting with new products due to very low sales.
Example: when you are selling globally and you stored the inventory in a fulfillment center in another country, if your products are not selling out, getting your inventory back would be way more expensive.
You May Also Be Interested In
- AMAZON SELLER COMMISSION CHARGES IN INDIA
- Amazon Seller Refund Policy for Easy Ship Undelivered & Rejected Orders
Updates
*reflects the FBA related Fees as of 31 Jan 2021. This article was originally published in September 2020 and has been updated multiple times since.
Amazon keeps revising the Seller Fee and other guidelines from time-to-time. So, keep checking this article for regular updates.
——– If you still have any concern regarding Amazon or any other Digital Marketing strategies, ASK THE QUESTION in the comments below ——–
Thank you Sorabh for your honest reply !!
can you also suggest me a product based on your experience to start as I was also exploring kids Toys.
It will be a really great support if you can suggest me something and I will also look forward for your guidance if you don’t mind.
Regards
Mir
Hi Mir,
This is the most commonly asked question to me. But I will not be able to pinpoint a product. Reason being, there are 1000s of products in the market and a product that is good for me may not necessarily be a good product for you and vice versa.
Which product is good for you depends on many factors like your budget, availability of product and sourcing options, procurement cost, your knowledge about the product as well as your mindset to say the least.
Thus, I would suggest, just start with any product that you feel confident about and start with a small quantity or budget. Experiment and then see how things are going. Do consider all the selling costs like Amazon commission fee, shipping and see if you can compete with the market price before you take the final call.
GOOD LUCK 👍
Hi Sorabh,
Hope you are doing good!
I have been doing research on product to start selling on Amazon but the more I am searching for it the more Complex it is becoming for me.
I am planning to invest under 1 lakh and want to start selling on Amazon. Can you please suggest which product should I start with as a begging.
I was checking on remote controlled Cars, Bagpaks and many more but not able to make a decision, kindly help me with your honest opinion based on your experience that what product should I go for.
Regards
Mir
Hi Mir,
I am doing good. Thanks for asking!
The reason behind increased complexity is analysis-paralysis. The more you are researching about, the more perfection you are looking to find the best product. After a certain moment, you have to jump in to the ocean to test the water. Remember, execution is the key.
As you are planning to invest around 1 Lakh, which is a good amount to start with, I would suggest you to select a low cost product and test the market. And, start gradually and once you sure about the product start pumping money to boost the product to next level.
Remote control is ok but won’t recommend as battery operated products have to pass many restrictions. Back pack is good provided you calculate your margins properly as there is significant amount of competition in it.
GOOD LUCK 👍