If you’re constantly scrolling on social media, you’ve probably seen gurus offering their courses for Amazon FBA, or if you’re selling on Amazon you’ve probably encountered the term Amazon FBA. You’ve likely scratched your head and asked, what Amazon FBA is and are Amazon FBA Shipping Rates worth it?
To give you a few statistics, out of the 10,000 sellers on Amazon, 66% of them use FBA. It is pretty popular. Don’t worry if you don’t have any clue about it because we’ll be tackling all about Amazon’s FBA Program -- Amazon fulfillment services tracking, Amazon FBA shipping rates, and how to ship directly to Amazon FBA.
First and foremost, we’ll discuss what Amazon FBA is.
FBA means Fulfillment by Amazon.
As the name suggests, Amazon shall be the one to fulfill your orders. What you’ll do is to simply ship your products to Amazon’s warehouses and Amazon will be the one to pack, ship and provide excellent customer service to your customers.
Due to their amazing fulfillment service, they’ll help you scale your business and give you access to Amazon Prime members. Did you know that out of the 300 million active customers on Amazon, 90 million of them are Prime members?
Amazon’s Prime is a paid subscription program where users get more benefits than a regular customer on Amazon. Usually Prime members can have access to the one-day or next day shipping service of Amazon.
It’s also notable that they spend more money than the average customer. An Amazon Prime member spends an estimated $1,300 per year. However, only brands that are under Amazon FBA have access to Amazon Prime members.
This means you need to try registering your business on Amazon FBA so you can sell to Amazon Prime members.
With Amazon FBA, Amazon does the heavy work for you. Unlike the merchant-fulfilled network where you handle the packaging and shipment of the order, they’ll be the one to handle the fulfillment of orders.
The process is pretty simple. First, you’ll send your items to Amazon’s warehouse known as the Amazon fulfillment center. You must inform them of the product you will be shipping to them and they’ll advise you of the warehouse to ship the products.
Second, Amazon will store your products. You’ll need to pay an inventory storage fee and a fee for the fulfillment of your products. We’ll discuss these fees later.
Third, Amazon will process your orders. If your customers live overseas, the process will be called fulfilled by Amazon international shipping. Once an order is made, they’ll be the one to update your inventory and eventually ship your products.
The fourth step is following up on the customer. They offer customer service for the shipped product to make sure customers received the item. The last step is handling the computation of your sales. Amazon shall compute all your sales every two weeks and deduct the necessary fees.
That’s everything about the process of Amazon FBA. It’s pretty easy!
Finally planning on registering under the Amazon FBA program? Here are the shipping rates for Amazon FBA and other corresponding fees for this program.
Curious to know the advantages and benefits of Amazon FBA? We presented below some of the most notable benefits of using the Amazon FBA Program.
Affordable and fast shipping deals are important factors that push customers to buy in your store. They often love it when you can provide them with free shipping and same-day delivery.
Even based on the study conducted by NRF, 65% of consumers say they look up free-shipping thresholds before adding items to their online shopping carts. Aside from it, they found out that 39% of consumers want their products to be shipped quickly while 29% have backed out of a purchase because two-day shipping wasn’t free.
By selling on Amazon, your items are eligible for free shipping and two-day delivery that Amazon Prime members love. Through it, your products will rank high on Amazon search results and put it in the path of consumers.
Among the services that Amazon FBA will offer you is customer service. They’ll be the one to handle the follow-up on the delivery and satisfaction of the customers regarding the shipped product. On the other hand, customers love it when they receive top-notch customer service. They’re also more comfortable to buy in your store knowing they can return the item in case it has any defects.
Amazon FBA isn’t just for Amazon sellers. It can also be for sellers who sell outside of Amazon who owns their own business website. By availing of Amazon FBA Program, your customers can enjoy one-day or two-days shipping!
Since Amazon will handle the fulfillment of your orders, you can focus your attention on scaling your business. Instead of worrying over the logistics part of your business, you’ll just have to think about the marketing and planning of your store.
Based on Amazon’s A9 Algorithm, Amazon’s FBA products get to be ranked higher than non-Amazon FBA items. By ranking higher, it will allow you to get more sales. Some other factors may come to play such as fast shipping. Generally, you can see that most top ranked items are FBA products.
If you finally want to take advantage of Amazon FBA, there are a number of fees you need to know of.
Amazon FBA fees depend on these three primary factors:
The two main Amazon FBA fees you will be dealing with are the following:
2. Storage Fees - Aside from the fulfillment fees, you’ll also be paying for the storage cost of your product. You’re basically renting the space that your items are occupying. The fee shall depend on the space your items occupy.
Amazon also has categories for the product size. Determining the product size is important since the size and weight is needed to determine the fee.
Amazon FBA Fulfillment Fees
We mentioned earlier that fulfillment fees should be based on the weight and size of the product. You’re probably wondering how much is Amazon shipping or does Amazon FBA pay for shipping? The answer to shipping rates are below while it is worth noting that you do have to pay for Amazon FBA shipping.
Standard Shipping Fees for Standard Sized Products
| Size | Fulfillment Fee |
| Small standard-size (10 oz or less) | $2.50 |
| Small standard-size (10+ to 16 oz) | $2.63 |
| Large standard-size (10 oz or less) | $3.31 |
| Large standard-size (10+ to 16 oz) | $3.48 |
| Large standard-size (1+ to 2 lb) | $4.90 |
| Large standard-size (2+ to 3 lb) | $5.42 |
| Large standard-size (3+ lb to 21 lb) | $5.42 + $0.38/lb above first 3 lb |
Standard Shipping Fees for Oversize Sized Products
| Size | Fulfillment Fee |
| Small Oversize (71lbs or less) | $8.26 + $0.38/lb above the first two pounds |
| Medium oversize (151lb or less) | $11.37+ $0.39/lb above the first two pounds |
| Large oversize (151lb or less) | $75.78 + $0.79/lb above the first 90 pounds |
| Special oversize | $137.32 + $0.91/lb above the first 90 pounds |
| Before February 18, 2020 | February 18, 2020, and after | |||
| Size tier | Shipping weight | Packaging weight | Fulfillment fee per unit | Fulfillment fee per unit |
| Small standard | 10 oz or less | 4 oz | $2.81 | $2.92 |
| 10 to 16 oz | $2.88 | $3.11 | ||
| Large standard | 10 oz or less | 4 oz | $3.59 | $3.70 |
| 10 to 16 oz | $3.68 | $3.81 | ||
| 1 to 2 lb | 4 oz | $5.16 | $5.35 | |
| 2 to 3 lb | 4 oz | $5.66 | $5.95 | |
| 3 lb to 21 lb | 4 oz | $5.66 + $0.38/lb above first 3 lb | $5.95 + $0.38/lb above first 3 lb |
One of the few benefits of Amazon FBA is they allow you to sell on channels outside of Amazon. For example, you have a website for your products, and you want to avail of the services of Amazon FBA to fulfill your orders.
Fulfillment fees for products sold outside of Amazon are generally higher than items sold on Amazon.
It also has three shipping options: Standard, Expedited, and Priority. The fees for each shall be explained in the table below.
| Standard 3-5 business day shipping | |||||
| Size tier | 1 unit order | 2 unit order | 3 unit order | 4 unit order | 5+ unit order |
| Small standard: 4 oz or less | $3.95 | $2.75 | $2.39 | $1.89 | $1.79 |
| Small standard: 4 to 10 oz | $4.95 | $3.45 | $2.95 | $2.29 | $1.99 |
| Small standard: 10 to 16 oz | $5.79 | $4.05 | $3.45 | $2.89 | $2.59 |
| Large standard: 10 oz or less | $5.49 | $3.85 | $3.29 | $2.69 | $2.39 |
| Large standard: 10 to 16 oz | $5.79 | $3.90 | $3.40 | $2.89 | $2.59 |
| Large standard: 1 to 2 lb | $5.95 | $3.95 | $3.45 | $3.35 | $2.95 |
| Large standard: 2 to 21 lb | $5.95 + $0.38/lb above first 2 lb | $3.95 + $0.38/lb above first 2 lb | $3.45 + $0.38/lb above first 2 lb | $3.35 + $0.38/lb above first 2 lb | $2.95 + $0.38/lb above first 2 lb |
| Small oversize | $10.99 + $0.38/lb above first 2 lb | $6.80 + $0.38/lb above first 2 lb | $5.80 + $0.38/lb above first 2 lb | $4.80 + $0.38/lb above first 2 lb | $3.80 + $0.38/lb above first 2 lb |
| Medium oversize | $15.30 + $0.39/lb above first 2 lb | ||||
| Large oversize | $78.30 + $0.80/lb above first 90 lb | ||||
| Special oversize | $143.30 + $0.92/lb above first 90 lb |
| Expedited 2-day shipping | |||||
| Size tier | 1 unit order | 2 unit order | 3 unit order | 4 unit order | 5+ unit order |
| Small standard: 10 oz or less | $5.69 | $3.99 | $3.29 | $2.89 | $2.49 |
| Small standard: 10 to 16 oz | $5.89 | $4.19 | $3.49 | $3.09 | $2.69 |
| Large standard: 10 oz or less | $5.79 | $4.09 | $3.39 | $2.99 | $2.59 |
| Large standard: 10 to 16 oz | $6.29 | $4.59 | $3.89 | $3.49 | $3.09 |
| Large standard: 1 to 2 lb | $6.99 | $4.99 | $4.19 | $3.69 | $3.29 |
| Large standard: 2 to 21 lb | $6.99 + $0.38/lb above first 2 lb | $4.99 + $0.38/lb above first 2 lb | $4.19 + $0.38/lb above first 2 lb | $3.69 + $0.38/lb above first 2 lb | $3.29 + $0.38/lb above first 2 lb |
| Small oversize | $11.99 + $0.38/lb above first 2 lb | $7.80 + $0.38/lb above first 2 lb | $7.30 + $0.38/lb above first 2 lb | $7.15 + $0.38/lb above first 2 lb | $6.85 + $0.38/lb above first 2 lb |
| Medium oversize | $16.80 + $0.39/lb above first 2 lb | ||||
| Large oversize | $78.30 + $0.80/lb above first 90 lb | ||||
| Special oversize | $143.30 + $0.92/lb above first 90 lb |
| Priority next-day shipping | |||||
| Size tier | 1 unit order | 2 unit order | 3 unit order | 4 unit order | 5+ unit order |
| Small standard: 16 oz or less | $12.80 | $7.30 | $6.30 | $5.80 | $4.30 |
| Large standard: 16 oz or less | $13.80 | $7.80 | $6.80 | $5.90 | $4.80 |
| Large standard: 1 to 2 lb | $13.85 | $7.85 | $6.85 | $5.95 | $4.85 |
| Large standard: 2 to 21 lb | $13.85 + $0.39/lb above first 2 lb | $7.85 + $0.39/lb above first 2 lb | $6.85 + $0.39/lb above first 2 lb | $5.95 + $0.39/lb above first 2 lb | $4.85 + $0.39/lb above first 2 lb |
| Small oversize | $20.80 + $0.39/lb above first 2 lb | $11.30 + $0.39/lb above first 2 lb | $8.20 + $0.39/lb above first 2 lb | $7.70 + $0.39/lb above first 2 lb | $7.30 + $0.39/lb above first 2 lb |
| Medium oversize | $31.30 + $0.39/lb above first 2 lb | ||||
| Large oversize | $78.30 + $0.80/lb above first 90 lb | ||||
| Special oversize | $143.30 + $0.92/lb above first 90 lb |
Aside from the fulfilment fee being paid, you also have to look out for the storage fee. It is particularly advantageous when you store your product in Amazon’s warehouses. It will be easier on your part to ship your products, thus leaving you with a satisfied customer and a good rating on your product listing.
The monthly storage fee is computed and charged between the 7th and 15th day of the month following the order. For example, your order was placed and shipped July 4, then you’ll receive your storage fee in August.
The following table shows the storage fees based on the product-size and month.
| Month | Standard-size | Oversize |
| January - September | $0.75 per cubic foot | $0.48 per cubic foot |
| October - December | $2.40 per cubic foot | $1.20 per cubic foot |
There will also be additional storage fees for dangerous goods and long-term inventory.
To know more about the details, you may check Amazon’s website.
There will also be additional storage fees for dangerous goods and long-term inventory.
To know more about the details, you may check Amazon's website.
Aside from the fulfillment and storage fees, there are additional fees that can be charged to you. It's best to take note of these first before you plan on vailing Amazon FBA.
| Size Tier | Shipping Weight | Removal/Disposal Fee |
| Standard Size | 0 to 0.5 lb | $0.25 |
| 0.5+ to 1.0 lb | $0.30 | |
| 1.0+ to 2.0 lb | $0.35 | |
| More than 2 lb | $0.40 + $0.20/lb above first 2 lb | |
| Oversize | 0 to 1.0 lb | $0.60 |
| 1.0+ to 2.0 lb | $0.70 | |
| 2.0+ to 4.0 lb | $0.90 | |
| 4.0+ to 10.0 lb | $1.45 | |
| More than 10.0 lb | $1.90 + $0.20/lb above first 10 lb | |
| 0 to 1.0 lb | $0.60 |
Amazon FBA is a great program that can help you scale your business. Their services are highly competitive so that both Amazon sellers or outside Amazon sellers can benefit from it.
However, to ensure your business's success through the program, you must carefully calculate your fees and re-check them.
We do understand that there are several fees when joining this program. Hence, we advise you to think about it first before jumping into it.
Do you wish to choose a cheaper and competitive shipping service to ship your goods to Amazon's warehouse? Then you may try out our shipping service! Here at Stallion Express, we offer the best and quality shipping service to your goods.
You can even save up to 60% on shipping to Amazon FBA USA, especially if you wish to ship internationally! To know more about our services, you may contact us at +1 877-863-7447 or email [email protected].
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.
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