It is understandable to become overwhelmed with the various Amazon FBA shipping charges or fees as a new seller. After all, your goal is to find a cost-efficient way of selling your products without being weighted by skyrocket fees. However, if you fail to follow Amazon's guidelines, you have to pay the price--literally and figuratively.
Amazon FBA (Fulfillment by Amazon) has different fees such as inventory storage fees, fulfillment fees, removal fees, long-term storage fees, and return processing fees. But the most overlooked are the unplanned service fees.
What are FBA unplanned service fees?
At Amazon's fulfillment centers, there is no room for error since they have to meet the expectations of more than 150 million Prime subscribers who rely on their speedy delivery service. So, if you will be the cause of delay in their operations, you will pay dearly. This is why they came up with the unplanned service fees.
Unplanned service fees are sort of a "penalty" against sellers who don't comply with FBA's shipping and routing requirements and packaging and prep requirements. As stated by Amazon,
“When there are problems receiving inventory at the fulfillment center, we perform unplanned services to successfully process products into your sellable inventory. This may cause costly delays and affect your ability to sell products quickly.”
How does it work?
Amazon tells you about your shipment problem (performance coaching) and charges you with a corresponding unplanned service fee. Shipment problems can be categorized into three groups, such as quantity discrepancies, labeling errors, and safety issues.
Every four months, Amazon measures your shipment problem rate for each problem group. After assessing your problem rate, they will assign a performance coaching level based on your problem history. There are three levels of performance coaching, namely, Standard, Elevated, and Critical.
Unplanned Service Fees - Missing Label
Source: Amazon.com
Unplanned Service Fees - Safety Problems
Source: Amazon.com
12 Ways you can avoid unnecessary Amazon FBA shipping charges
You can dispute unplanned service fees, but it would be better to prevent it from happening by doing the following:
Don't use point-of-sale containers and open boxes.
Make sure to remove old shipping labels, markings, or barcodes before reusing a box.
Use only a rigid, six-sided box with flaps intact. Acceptable standard boxes are regular slotted carton, B Flute, ECT-32 (edge crush test), and 200 lb./sq inch (burst strength).
Don't bundle multiple boxes together.
Make sure the contents of the box don't move when shaken gently.
Use packaging tape designed for shipping.
Ensure each shipping label has a precise and complete delivery and return information.
Provide accurate box weight and dimensions.
Use only cushioning materials such as bubble wrap, full sheets of paper, inflatable air pillows, and polyethylene foam sheeting.
Unacceptable cushioning materials are packing peanuts, foam strips, crinkle wrap, shredded paper, thermocol chips, and styrofoam.
Avoid heavy and oversized shipping boxes, unless they contain one single oversized item.
Properly package electrical, sharp, and liquid products.
Suppose you fail to comply with safety requirements, product preparation requirements, and product restrictions. In that case, Amazon has the right to refuse your inbound shipment to its fulfillment center. They might dispose of or return your inventory, or worse, block future shipments if you keep repeating the same offense.
Moreover, Amazon may charge you a manual processing fee, label service fee, or prep service fee besides the unplanned service fee. So, yup, so much for surprised, hidden costs.
Source: Amazon.com
What if you choose FBM?
FBM stands for Fulfillment by Merchant, which is another shipping method allowed by Amazon for sellers who want to deliver orders by themselves. However, you need to be aware of the U.S. to Canada shipping cost if you choose this route.
Shipping costs vary from one shipping company to another. For example, the cost of express shipping Canada Post, called Xpresspost, ranges from $10.19 to $216.69.
If you have an efficient logistics team and reliable shipping company, FBM is for you. But remember that you won't have the following benefits that only Amazon FBA sellers enjoy:
Access to more than 150 million Prime subscribers.
A chance of winning the Buy Box.
Access to Amazon FBA's customer service and processing returns.
Getting at a higher position in the search results.
Does Amazon FBA pay for shipping? Yes! This is another benefit you will lose if you choose FBM. Amazon will not charge you for shipping the order to your customers.
Getting help from third-party prep and shipping service providers
Some companies offer customized and dedicated Amazon FBA services. All you need to do is send your inventory to these third-party firms, and they will be the ones to send it to Amazon fulfillment centers.
They can also prepare your shipment based on Amazon FBA guidelines or requirements. Furthermore, some third-party firms offer packaging materials that you can avail from them.
You can also have dedicated staff that will handle customs and export declaration. With third-party companies like this, all the nitty-gritty is taken care of by experienced Amazon FBA peeps.
Key takeaways
Always be careful and mindful when shipping your goods to Amazon's warehouses. Else, you will be dealing with unwanted and unplanned service fees that could eat up your profits. Also, ensure that you will share the Amazon FBA requirements with your chosen shipping company or third-party service provider to avoid being charged more. In this way, you can fully take advantage of the program minus the unwanted Amazon FBA shipping charges.
Do you have a hard time understanding and remembering Amazon FBA shipping charges? Stallion Express has a dedicated and experienced team willing to assist you with your Amazon FBA needs. For inquiries, you can call +1 877-863-7447 or email [email protected].
Get started today! Ship faster, smarter, cheaper with Stallion.
Pramod is the CEO of Stallion Express - the leading eCommerce shipping provider in Canada. His vision, leadership, and innovative strategies have catapulted Stallion into one of the industry's most trusted brands. He is on a mission to help online sellers in Canada scale and succeed. He is also the reigning office ping pong champion.
Are you a Canadian seller aiming to provide customers with a fast, affordable, and convenient shipping service? Or an online business owner wanting to improve customer service and earn more sales? This blog post might pique your interest. Shipping to the United States has always been expensive due to the distance. However, Stallion Express, together […]
When various eCommerce platforms paved the way for online shopping, they also empowered small businesses to find a place for their products and services. The process of putting up the store entails finding shipping partners for eCommerce that will help deliver and fulfill your customers' orders. Finding a shipping and mailing service to help you […]
Canada has a vast market of people buying and selling online, ranking 8th worldwide. Domestic shipping has grown a significant number over the years, making tough competition in the eCommerce industry in the country. As a small business owner, succeeding in the eCommerce industry is something you look forward to in the future. Of course, […]
The rise of the eCommerce industry paved the way for many online sellers to open a business. Although starting a small business has never been easy, technology provided start-up businesses leverage over the traditional ones. Plus, with the power of social media, like Tiktok, Facebook, and Instagram, many people are enticed to purchase items overseas. […]
Having everything you need in one place saves you time, effort, and a lot of resources. It is no surprise why many enroll in an FBA program where automated transactions are being fostered, benefitting online sellers amidst the pandemic. If you have your Amazon business established, you would most likely choose an FBA business model […]
In 2018, the US received $318 billion worth of import goods from Canada, making Canada its third-largest trade partner. This trade partnership has always been strong even in the past years, and with the growth of e-commerce, the US-Canada trade may see continuous development in the coming years. Behind all these trades are shipping companies […]
We're getting close to the end of the year! As usual, Stallion is here to provide you with some insightful news to make shipping more efficient. Now, let's get into the specifics: General Updates Stallion Branch Hours Review our Stallion location business hours for your guidance this upcoming holiday season. Holiday Shipping Deadlines 2023 As […]
There is a temporary delay that may impact some of the U.S. shipments at our locations across Ontario from November 21 to November 22. This delay is attributed to two factors: the temporary closure of the border between Canada and the U.S. following an incident on Wednesday morning and the U.S. Thanksgiving holiday on Thursday. […]
'Tis the season! As we gear up for the festive holiday season, take a moment to check out our special hours to ensure you can plan your visits accordingly. In addition to our schedule, we advise you to take a look at our partner carrier's holiday shipping deadlines. This will help you manage expectations regarding […]
Establishing a brand is already a challenging task to keep up due to the rising number of businesses that open yearly. However, expanding across the border is a different thing. It requires more strength, better marketing techniques, and exceptional working strategy because you will face thousands of sellers in the United States and overseas. This […]
Due to the expensive shipping cost and tedious process, numerous businesses usually do not consider international shipping. Additionally, attracting the right target market is more challenging because of various elements, such as culture, geographical location, and local preferences. However, Stallion Express can help you know the factors in choosing the most suitable global audience for […]
Going out of your comfort zone can be scary and worrisome-the feeling of facing the unknown and looking forward to something you cannot predict. This idea can apply to different things, including business. You can handily establish a company; managing and growing it, though, is the challenging part. Moreover, expanding your business internationally can be […]
Hear what online sellers in Canada are saying
"Stallion Express is a game changer for small business owners like myself. My online store wouldn't be where it's at today without the Stallion Express team."
Dorothy Wong
"Outstanding service. Delivery is always on time. Accessible location. Expert staff. There's nothing else I could ask for."
Norma Joseph
"Stallion Express has been fulfilling my shipments with excellence for the longest time. With their quick actions and unparalleled customer service, they are the best shipping company."
Lena Hulsey
Ship faster, smarter, and cheaper with Stallion Express