Navigating the world of Amazon selling means understanding the costs involved, especially when choosing between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). Both methods come with their own fee structures, and keeping track of them can be daunting. However, with tools like the Seller Assistant, calculating these fees becomes much simpler. In this article, we'll break down how to calculate FBA and FBM fees in 2024 using Seller Assistant.

Understanding FBA and FBM Fees

Firstly, let's recap the basics. FBA sellers rely on Amazon's fulfillment services for order picking, packing, shipping, and customer service. On the other hand, FBM sellers manage these tasks themselves or through third-party service providers.

Common Fees for All Amazon Sellers

Regardless of the fulfillment method, Amazon charges two main types of fees:

  1. Selling Plan Fees: These can be either a monthly fee or a per-unit fee, depending on the plan you choose.
    • Individual Plan: $0.99 per unit
    • Professional Plan: $39.99 per month
  2. Referral Fees: These are a percentage of the total sale price, excluding tax. The rate varies by category but generally falls between 8% and 15%.

New Changes to Referral Fees in 2024

Effective January 15, 2024, Amazon has adjusted referral fees for apparel products. For items priced below $15, the fee has been reduced from 17% to 5%, and for products priced between $15 and $20, the fee is now 10%.

FBA Seller Fees

If you choose to go with FBA, you'll also need to consider:

  • Fulfillment Fees:
    • Order Fulfillment Fees: These fees cover picking, packing, and shipping. Rates vary based on the product's weight, dimensions, and size tier.
    • Inbound Placement Service Fees: Introduced on March 1, 2024, these fees apply when Amazon helps distribute your inventory to various fulfillment centers.
    • Low-Inventory-Level Fees: Implemented on April 1, 2024, these fees apply when your inventory levels fall below 28 days relative to demand.
    • Returns Processing Fees: Introduced on June 1, 2024, these fees apply when the return rate for a product exceeds a certain threshold.
  • Storage Fees: These are based on the daily average volume of space your inventory occupies in Amazon's warehouses. The fees vary by product type, size tier, and time of year.
  • Additional Fees: Other charges like Inbound Defect Fees, Inventory Removal Fees, and more may apply depending on your operations.

FBM Seller Fees

For FBM sellers, the additional fees to consider include:

  • Fulfillment Costs:
    • Self-Handling: You manage picking, packing, and shipping yourself.
    • Third-Party Logistics (3PL): You can opt for third-party services that handle fulfillment for you.
  • Shipping Costs: Based on shipping method, product category, weight, and distance to the customer.

Using Seller Assistant to Calculate Fees

Now that we've covered the fee structures for both FBA and FBM, let's dive into how the Seller Assistant can simplify the fee calculation process.

Key Features of Seller Assistant 

  • FBM&FBA Profit Calculator: This tool displays all Amazon fees for both FBA and FBM sellers separately, making it easier to understand your total costs.
  • Side Panel View: Provides a quick overview of essential information.
  • ASIN Grabber: Helps you quickly identify products for sale on Amazon.
  • Stock Checker: Allows you to keep an eye on your inventory levels.
  • Restrictions Checker: Helps ensure your products comply with Amazon's guidelines.

How to Calculate Fees Using Seller Assistant 

  1. Select Your Selling Plan: Choose between the Individual or Professional plan.
  2. Input Product Details: Enter the product's weight, dimensions, and selling price.
  3. Choose Fulfillment Method: Select either FBA or FBM.
  4. Review Calculated Fees: The tool will automatically calculate all associated fees, including referral fees, fulfillment fees, and storage costs.

Example Calculation

Let's say you're an FBA seller with a Professional plan selling an apparel item priced at $20.

  • Referral Fee: 10% of $20 = $2
  • Fulfillment Fee: Based on the product's weight and dimensions, let's say it's $5.
  • Total Fees: $39.99 (Professional plan) + $2 (Referral fee) + $5 (Fulfillment fee) = $46.99

Conclusion

Understanding and calculating Amazon FBA and FBM fees can be complex due to various factors like selling plans, referral fees, fulfillment fees, and storage costs. However, tools like the Seller Assistant simplify this process by providing accurate fee calculations and insights.

Whether you're an FBA or FBM seller, staying informed about the latest fee changes and using tools like Seller Assistant can help you optimize your profitability and make informed decisions for your Amazon business in 2024.