Aloha, Amazon Seller!
For the sellers trading on Amazon, the marketplace offers Fulfillment by Amazon, FBA for short - a unique and beneficial option. For the merchants who selected this fulfillment method, Amazon stores, packs, picks, and ships their inventory, so that they don't need to do it themselves.
Those sellers who are using the FBA option have to follow certain rules and regulations introduced by the online retailer. Amazon provides sellers with return fees and disposal of FBA inventory, which comes with reasonable Amazon fees for sellers.
What are the FBA removal fees, and which Amazon FBA seller fees do the platform charge for other options connected with Amazon FBA? In this post, we will discuss FBA Amazon fees, FBA removal fees, and FBA return fees.
What Are Removal Fees and FBA Disposal Fees?
If you’re using FBA to deliver your inventory to your customers, this means that you store it in Amazon’s warehouses and they charge you a fee for it. These fees are fees applied on top of other fees you pay to sell on Amazon.
Sometimes it may happen so that some of your inventory sells slowly. If they sit at an Amazon fulfillment center for over a year, Amazon will apply long-term storage fees. A long-term storage fee is charged for the inventory that has been in a fulfillment center for more than 365 days, in addition to the monthly inventory storage fee, on the monthly basis as well. Afee is $6.90 per cubic foot of storage used, or $0.15 per product (whichever is greater).
To avoid such fees, you’ll have to remove your inventory from Amazon’s warehouse or destroy them. Both options also come with a cost.
Removal fee Amazon is, therefore, a cost to return your inventory back from Amazon warehouse, while disposal fee is charged for an item to be disposed of at the fulfillment center.
From January 18, 2022, Amazon has increased removal and disposal fees per unit. The complete list of fees you can find here.
The Types of Amazon Removal Fees
There are a few types of removal fees:
- Standard Seller Fees: the fees ranging from 15 to 18% of the price after the item is sold.
- Fulfillment by Amazon Fees: these fees are charged for the picking, shipping, packing, handling, customer services, and product returns. The fees payable are per unit and depend on the product size, standard or non-standard size.
- Inventory Storage Fees: are dependent on the month and the average volume of the storage. Usually, Amazon charges storage fees per month. The fees can also depend on product size and could be charged for the units stored in the Amazon fulfillment center for more than 365 days.
- International Fees: Amazon offers Global Export to send inventory across the world.
How to Remove Inventory from Amazon FBA
Below you will find the guide to remove items from FBA. Keep in mind, that when you remove inventory from Amazon FBA, you pay a small fee to Amazon.
1. Create a removal order
There are two ways for removing orders from FBA. First, go to the Manage Inventory page and remove items from any available listing. Second, choose the items you want to remove manually on the same Manage Inventory page. Select the "Action" and then click "Create Removal Order."
2. Add address and order ID
On the return option, you have to enter the shipping address and order ID. If you choose not to provide an order ID, it will be generated automatically.
3. Indicate the SKUs/units you ordered
You can find the product by ASIN, FNSKU, or MSKU to add more items to the list. Choose the search option and provide these details to the box named "Search and Add Items". Select the products you want to remove and click the button "Add Selected."
4. Add the items to be removed
Enter the number of goods you want to remove from FBA. This number can't exceed the quantity available to be removed.
5. Review the order of the goods to be removed
Check the Amazon removal order and all details after providing products you want to remove. You should definitely check the order ID, the removal method, the details of the items chosen for removal, and the ship-to address.
How to Cancel a Removal Order
You can cancel a removal order in which the status is "Pending" or "Planning." You can't cancel the order with the "Processing" status. Amazon sellers are often canceling a removal order, it's a common practice.
The next steps you need to do for canceling the order are as follows:
- On the "Manage the Order" page, choose the option "Advanced Search;"
- In the drop-down list, select "Order ID;"
- In the order ID section, click the "Search" button;
- Under the "Action" button, choose "Cancel the Order."
Transactions of Removal Order
Amazon sellers are charged a fee once the order has been removed. So, the seller's Payment report has a removal transaction.
Here's how to find a transaction:
- Open the tab "Transaction View" in the section "Payments."
- Choose the "Services fees", which you can find in the drop-down menu.
- Choose the date range you can see in the "Within" menu.
- Choose the "Update" button.
- Choose the "Product details," pick transactions with the "FBA Removal Order" label. On the page, you will see the date of processing the order.
Enjoy your sales, and don’t forget about your product’s profitability and KPIs. It’s very important to keep track of them as they show your account health. To do the analysis easily, you can use Business Analytics Seller tools, like SageSeller. With this tool, you can keep track of your sales, costs, and profits and see where you can optimize them. Also, you can see sales and profit dynamics showing you how healthy is your business.