For brands considering Fulfillment by Amazon (FBA), the promise is clear: streamlined operations, Prime-eligible two-day shipping, and end-to-end logistics managed by one of the most sophisticated fulfillment networks in the world. FBA can help you scale faster, deliver exceptional customer experiences, and reduce the hands-on workload of managing orders and returns.
But while FBA offers major advantages, it’s essential to understand the full scope of costs involved, which can impact your margins if you don’t plan for them upfront.
In this guide, we’ll break down every FBA-related cost you need to know so you can launch with clarity, optimize for profitability, and get the most out of Amazon’s fulfillment engine.
FBA fees are the total charges Amazon collects in exchange for its end-to-end fulfillment services. These charges fall into three categories:
To use FBA, you must meet certain prerequisites:
Here’s a detailed look at every FBA fee that could impact your margins.
Amazon charges a fulfillment fee for each unit sold via FBA. This includes:
These fees are calculated by product size tier and shipping weight. Two pricing structures apply:
Amazon charges monthly for storing inventory at its fulfillment centers. The fee is based on:
This is a recurring cost and can grow rapidly if you store more inventory than you sell.
Products stored over 181 days incur monthly long-term storage fees on top of standard storage charges.
Tip: Use Amazon’s Inventory Age tools to track how long inventory is sitting in storage—and act before it costs you.
When Amazon offers free return shipping to a customer, the seller is responsible for a per-unit return fee.
Each category has a defined return rate threshold based on historical performance—that is, an acceptable number of returns that Amazon considers normal. If your return rate exceeds that benchmark, you’ll be charged an additional fee for each return above the limit.
Note: Returns can quickly become one of the largest hidden costs. Brands in high-return categories should budget accordingly.
When clearing out old stock, you’ll have three options: removal, disposal, or liquidation.
All three options involve additional fees, and this is particularly relevant for new launches or excess inventory after a slow season.
Amazon prefers inventory to be spread across multiple fulfillment centers to ensure faster delivery. You can allow Amazon to split and distribute your inventory, but it comes at a price. You can avoid this by manually splitting shipments, but that adds operational complexity.
If your stock level for a product falls below 28 days of projected demand, Amazon may charge a per-unit fee—even if the item is still in stock. Low inventory is seen as a potential risk to the customer experience.
Tip: Use Amazon’s Restock Inventory tool to monitor demand forecasts and receive replenishment suggestions.
These apply only if you proactively opt into Amazon’s prep services. In this case, Amazon will handle labeling, bagging, bubble wrapping, or other packaging steps for you—and charge a per-unit fee. This is a convenience service that some sellers choose to streamline operations.
Amazon has strict FBA requirements for how products must be labeled, packed, and prepared before arriving at their fulfillment centers. These are penalty fees charged when your shipments arrive without meeting these rules and you didn’t opt into prep services. (This includes missing or incorrect barcodes, improper packaging, or noncompliance with safety labeling). If you’re handling prep yourself, make sure to double-check every unit before shipping.
Products classified as hazardous—such as certain chemicals or battery-powered items—come with slightly higher storage and fulfillment costs.
Amazon FBA is a powerful logistics solution—but without a clear understanding of its true costs, it can drain more profit than it delivers. By uncovering every hidden fee in advance and taking advantage of Amazon's forecasting tools, you can build a leaner, smarter, and more profitable FBA strategy.
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