As the largest and most popular eCommerce platform, Amazon offers sellers several ways to sell their products. Additionally, newbies prefer Amazon because of its consistency, business scope, and trustworthiness.
Because of the cost involved, choosing the right fulfillment method is essential. You can choose from three fulfillment options on Amazon: Fulfillment by Amazon (FBA), Fulfillment by Merchant (FBM), and Seller-Fulfilled Prime (SFP).
Throughout this blog, we will discuss Amazon FBM fees in detail so Amazon sellers can understand all aspects of this method of getting their orders to customers.
Amazon FBM - A Brief View
Amazon FBM is also called Amazon Merchant Fulfilled Network (MFN). Amazon sellers are responsible for fulfilling purchased products on Amazon under this fulfillment method. FBM can be managed directly by the seller or by partnering with a logistics company. The merchant should handle the entire process including inventory storage, picking, packing, shipping, returns, and customer service.
The only way for newbies to start their Amazon business is through FBA, since setting up FBA requires time, and sellers need some approvals for their Amazon FBA business. Sellers must also demonstrate inventory turnover. Small businesses, however, prefer to use the FBM method since the Amazon FBM costs are more reasonable.
FBA Vs FBM - What's The Difference?
Fulfillment by Amazon (FBA) is a fulfillment method in which Amazon is responsible for delivering products. The items are sent directly to Amazon's warehouse by the seller or the seller's supplier, who stores the inventory, picks, packs, and ships the product directly to the customer.
Customers who subscribe to Amazon Prime would only have to wait two days for their orders to arrive. Customers can also return items and contact Amazon's customer service.
Another option is Amazon FBM, where sellers list their products on Amazon using the Amazon platform. However, the merchant handles the rest, including storage, pick-up, and shipment. Customer service and return are also their responsibilities.
What are Amazon FBM Fees?
If sellers choose to ship the products themselves, they will incur some shipping costs. These charges will mostly depend on the delivery channels and will vary for each seller.
Amazon charges different shipping fees depending on the type of product you purchase. Each item comes with a specific shipping fee, so if you buy multiple items from a seller, you may end up charging more. For domestic and international shipments, American customers must pay according to the following tables: [source: Amazon]
|
|
Domestic Expedited* |
Domestic Two-Day |
Domestic One-Day |
|
|
|
(4 - 14 business days**) |
(2 - 6 business days**) |
(2 business days) |
(1 business day) |
|
Books |
$3.99 |
$6.99 |
$14.95 |
$19.99 |
|
CDs, Cassettes, Vinyl |
$3.99 |
$6.19 |
$14.95 |
$19.99 |
|
VHS Videotapes |
$3.99 |
$6.19 |
$14.95 |
$19.99 |
|
DVDs and Blu-ray |
$3.99 |
$6.19 |
$14.95 |
$19.99 |
|
Video Games |
$3.99 |
$6.99 |
Not available |
Not available |
|
Software & Computer Games |
$3.99 |
$6.99 |
Not available |
Not available |
|
Camera & Photo |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
|
Tools & Hardware |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
|
Kitchen & Housewares |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
|
Computer |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
|
Outdoor Living |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
|
Electronics |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
|
Sports & Outdoors |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
|
Cell Phones & Service |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
|
Musical Instruments |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
|
Office Products |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
|
Toy & Baby |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available |
|
Independent Design items |
FREE |
$6.49 + $0.99/lb. |
Not available |
Not available |
|
Everything Else |
$4.49 + $0.50/lb. |
$6.49 + $0.99/lb. |
Not available |
Not available
|
* Includes APO, FPO, and U.S. Protectorate addresses.
** Some sellers offer reduced transit times when shipping orders. Please see the seller's policies for more information.
International
|
|
International Standard |
International Expedited |
|
|
|
(3 - 6 weeks) |
(3 - 7 business days) |
|
|
Books |
$16.95 up to 1lb. $24.95 over 1 lb. |
$46.50 |
|
|
CDs, Cassettes, Vinyl |
$14.95 |
$46.50 |
|
|
VHS Videotapes |
$14.95 |
$46.50 |
|
|
DVDs |
$14.95 |
$46.50 |
|
Note: Shipping charges for non-media products delivered outside the Continental United States are set by the sellers themselves. Please see the rates posted in the seller's shipping policies.
Who Pays For Amazon FBM Shipping Fees?
The customer/seller must also pay shipping fees for the FBM method.
Amazon FBM Selling Fees:
For FBM Amazon has a three-layer fee structure. They are,
-
Monthly Subscription Fee
You will be able to waive additional fees for sellable products when you subscribe to the Professional plan per month.
-
Referral Fee
Referral fees vary between 6% and 45% depending on the type of product you sell. The referral fee table can be found on Amazon's website.
Other Fees You May Incur
➤ High Volume Listing Fees
➤ Closing Fees
➤ Rental Book Service Fees
➤ Refund Administration Fees
Our Thoughts:
When using Amazon FBM for fulfilling your products, you should take into consideration Amazon FBM Costs. Fulfilling your product through FBM has some benefits, although it requires hard work. These advantages make Amazon FBM appealing to use as a primary or backup fulfillment method.
So now you have a clear picture of the fulfillment method! But what about products? Choosing a good product is the primary step to profits, right? Then do the groundwork. Visit 1000s of online stores to find a profitable product. Or else, just subscribe to Amz online Arbitrage.
Read our amz blog to know more about Amz Online Arbitrage.