Amazon FBA – You list products for sale, then ship them to Amazon warehouses, where Amazon stores them for you. When you make a sale, Amazon packages the order and ships it directly to the customer.
Amazon FBA costs
Fulfillment costs
This fee is related to the biggest benefit of selling through Amazon FBA – product fulfillment. For small operators, packaging and shipping can take time away from sourcing or marketing products.
Storage fee
Amazon charges various FBA storage inventory fees based on how long and the size of the product is stored. Short-term monthly storage fees range from $0.48 to $2.40 per cubic foot. Long-term storage (181-365 days) is charged at a rate of $3.45 per cubic foot.
Refund fee
Miscellaneous
As we all know, the profit of doing Amazon cross-border is relatively high, but the Amazon FBA costs are not low. Only by controlling the cost of each link can we get high profits.
But when it comes to the raw material cost of a product, we must not cut corners at will.
We must ensure the quality of the product. Once there are serious quality problems, there will be a risk of being blacklisted by the Amazon platform. Therefore, we try to save Amazon FBA costs reasonably in other aspects.
How to save Amazon FBA costs?
When selecting products, add logistics costs to the budget
Many sellers often make mistakes in the product selection process, that is, they do not take logistics costs into account, resulting in a serious overrun of the entire budget. The weight and volume of products affect logistics costs, while market demand and market pricing affect the profits of the entire commercial activity.
Reasonable distribution
If it is a small shipment, the delivery settlement standard of the local truck in the United States is not settled by cubic or kilogram, nor is it settled by pallet. The US FBA transportation method is mainly based on the two indicators of which area the total cubic number falls in and the height of the pallet.
Optimized packaging
Selling products on Amazon FBA is different from selling products in traditional physical stores, so it is best to choose attractive packaging that is as small and light as possible.
But if you want to save on Amazon FBA costs at the same time, choose the reduced packaging option and see if you can modify it in one of the following ways:
Reduce or eliminate empty space in boxes.
Replace bulky padding materials with thinner versions.
Keep accessories inside the product, not in their own space.
Some assembly is required in order for the product to fit the box better.
Staggered delivery season
Sea freight and air freight to USA tend to increase freight rates during peak seasons, while logistics tends to lower prices during off-seasons in order to attract customers. Therefore, Amazon sellers must prepare the goods half a month before the peak season and send the goods to the FBA warehouse.This can save a lot of Amazon FBA costs.
Choose an Amazon FBA freight forwarding company with favorable prices
Freight forwarding logistics is a crucial step in the entire transaction process. Although you can’t save too much money at this link, you can’t spend too much money on Amazon FBA costs.
The cheaper the price of the Amazon FBA freight forwarding company does not mean the better, but the more expensive it is, the better. But the definition of the freight forwarder with price advantage we are talking about is: mastering different logistics resources, developing different logistics channels, and combining logistics packages with high safety and favorable prices.
