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Amazon FBA charges three main types of fees:
- Referral Fee: 8-20% of sale price (varies by category)
- FBA Fulfillment Fee: Based on product size and weight ($3.22-$158+ per unit)
- Storage Fee: $0.87/cubic foot monthly (Jan-Sep) or $2.40/cubic foot (Oct-Dec)
- Long-Term Storage: Additional $6.90/cubic foot after 6 months
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- ✓Optimize packaging to fit smaller size tiers (can save $10+ per unit)
- ✓Avoid long-term storage fees - sell or remove slow inventory before 6 months
- ✓Ship inventory to arrive after October 1st to avoid peak season storage fees
- ✓Consider FBM (self-fulfillment) for large, low-margin items
- ✓Choose low-referral-fee categories when possible (8% vs 20%)
- ✓Promote wholesale-ready bundles with LinkedInBoost to reach corporate buyers
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What is the difference between FBA and FBM?
FBA (Fulfilled by Amazon) means Amazon stores, packs, and ships your products. FBM (Fulfilled by Merchant) means you handle fulfillment yourself. FBA costs more but offers Prime eligibility and better Buy Box chances.
How do I calculate my product's size tier?
Size tiers are based on dimensions and weight. Small Standard items (under 12 oz, max 15" longest side) have the lowest fees ($3.22). Large or heavy items cost significantly more to fulfill.
When do long-term storage fees apply?
Amazon charges an additional $6.90 per cubic foot for inventory stored 6+ months. This is in addition to regular monthly storage fees. Remove or liquidate slow-moving inventory to avoid these charges.
Why are storage fees higher in Q4?
From October to December, storage fees increase from $0.87/cu ft to $2.40/cu ft due to high demand for warehouse space during the holiday season.