Fulfilment By Amazon (FBA) Introduction

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Fulfillment By Amazon (FBA) Introduction

Fulfillment by Amazon is one of the best programs of amazon where sellers can store their inventory at amazon’s world-class fulfillment centers. Amazon will store, pick, pack and ship orders across India and also all the returns and customer service are managed by amazon itself.

Benefits of Fulfillment By Amazon​

Prime Tag – Amazon Prime products are always the buyer’s first preference and a seller gets a prime tag for the products which he stores at the amazon fulfillment center and thus as seller enjoys more sales. FBA products become eligible for unlimited free one-day and two-day delivery options.

No packaging overhead – With Amazon FBA all the packaging is done by amazon itself. Also, amazon FBA is well known for its packaging and thus attract buyers toward your products.

Increase your chances of getting more revenue.

FBA registered sellers are eligible to win the BUY BOX.

Amazon will handle all customer service-related issues.

Sellers registered on FBA are eligible to participate in deals on Amazon.in

Hassle-free storage and transportation

FBA sellers enjoy a flat rate for shipping their products across India

How Fulfillment By Amazon Works?

Register your products in Seller Central providing quantity, price and conditions.
Send them to Amazon’s fulfillment centers using labels printed from Seller Central.

Amazon stores your products in our ready-to-ship inventory.

Fulfillment by Amazon picks your products from inventory and packs them as soon as an order comes for the product.

Amazon ships your products to customers from their network of fulfillment centers.

Amazon FBA Fees

Enrolment for FBA does not involve any charge.

Fixed Closing Fees – The fixed closing fees will be charged based on your item price and category.

Item price is grouped into four groups (INR 0-250), (INR 251-500),(501-1000) and (1000+).

Categories are divided into two groups (Books, Movies, Music, Software, video games, Baby products, Beauty, Health, Personal care, Personal care appliances, Gourmet, Pets products) comes into one group and other category makes the second group.

For item price, 0-250 INR 10 will be charged for group 1 and INR 20 for group 2.

For item price, 251-500 INR 15 will be charged for group 1 and INR 20 for group 2.

For item price, 501-1000 INR 20 will be charged for group 1 and group 2.

For item price 1000+ INR 40 will be charged for group 1 and group 2.

Weight Handling Fees – Weight handling fees are charged according to the actual or volumetric weight which out them is higher.

Volumetric weight is calculated by multiplying package dimensions in cm and dividing them with 5 will give you volumetric weight in grams.

Amazon FBA classifies items as small size, standard size, oversize & oversize heavy and bulky items in accordance with their volumetric and actual weight.

FBA Fees For Small Size Items

Small size items are an item with their longest side less than or equal to 30.48 cm, Medium side less than or equal to 20.32 cm, shortest side less than or equal to 10.16 cm and their actual weight should be less than or equal to 1 kg.

Pick and Pack Fee (per unit) – INR 10

Storage Fee (per cubic foot /month)- INR 14.20

Weight Handling Fee

(First 500 gms / Regional) -INR 28

(First 500 gms / National) -INR 50

(Next 500 gms / Regional) -INR 18

(Next 500 gms / National) -INR 27

FBA Fees For Standard Size Items

Standard size items are an item with their longest side less than or equal to 50.80 cm, Medium side less than or equal to 40.64 cm, shortest side less than or equal to 25.40 cm and their actual weight should be less than or equal to 12 kg.

Pick And Pack Fee (per unit) – INR 15

Storage Fee (per cubic foot /month)- INR 14.20

Weight Handling Fee

(First 500 gms / Regional) -INR 28

(First 500 gms / National) -INR 50

(Each additional 500 gms up to 3 kg/ Regional) -INR 18

(Each additional 500 gms up to 3 kg / National) -INR 27

(Each additional 1 kg / Regional) -INR 8

(Each additional 1 kg / National) -INR 11

FBA Fees For Over-Size Items

Oversize items are an item with their longest side more than 50.80 cm, Medium side more than 40.64 cm, shortest side more than 25.40 cm and their actual weight more than 12 kg.

Pick and Pack Fee (per unit) – INR 25

Storage Fee (per cubic foot /month)- INR 14.20

Weight Handling Fee

(Up to 5 kg / Regional ) -INR 72

(Up to 5 kg / National ) -INR 115

(Each additional 1 kg / Regional ) -INR 8

(Each additional 1 kg / National ) -INR 11

FBA Fees For Over-Size Heavy And Bulky Items

Oversize items weighing more than 30 kg are classifies as oversize heavy and bulky items

Pick and Pack Fee (per unit) – INR 25

Storage Fee (per cubic foot /month)- INR 14.20

Weight Handling Fee

(Up to 12 kg / Regional ) -INR 200

(Each additional 1 kg / Regional ) -INR 2.5

An additional 18% GST is added to these fees.

Now let’s take an example to make a better understanding of amazon fba fees

Let us calculate amazon fba fees for a product whose price is INR 500, the category is beauty, shipment is regional, actual weight = 4500 gms and the product dimensions are 50 x 40 x 25 cm.

So volumetric weight = 50 x 40 x 25 /5 =10000 gms

Now the fees will be calculated for volumetric weight i.e 10000 gms because it is higher of two and the product lies under standard size item.

FBA Fees

Fixed Closing Fees – INR 15

Pick and Pack Fee (per unit) – INR 15

Storage Fee (per cubic foot /month)- INR 14.20

Weight Handling Fee =28 + 18 x 5 + 8 x 7 = 28 + 90 + 56 = INR 174

Total FBA Fees = (15 + 15 + 14.20 +174 ) + 18% GST = 218.20 + 39.276 = INR 257.47

Sometimes removal of an item is required when the item is not sold for a longer period or may get damaged, defective so certain fees will be charged for removal. You can self pick the item from amazon warehouse or amazon will deliver the item to your address.

FBA Removal Fees For Small Size items

Standard Shipping (Per unit) – INR 5

Expedited shipping (Per unit) – INR 15

FBA Removal Fees For Standard Size items

Self Pickup (Per unit) – INR 10

Standard Shipping (Per unit) – INR 10

Expedited shipping (Per unit) – INR 30

FBA Removal Fees For Over-Size items

Self Pickup (Per unit) – INR 25

Standard Shipping (Per unit) – INR 25

Expedited shipping (Per unit) – INR 50

FBA Removal Fees For Over-Size Heavy And Bulky items

Self Pickup (Per unit) – INR 25

Standard Shipping (Per unit) – NA

Expedited shipping (Per unit) – NA

Self Ship – The seller picks itself from amazon warehouse.

Standard Shipping – Amazon will ship to your address but takes 15 days to initiate the process.

Expedited shipping – Amazon will ship to your address but takes 5 days to initiate the process.

An additional 18% GST is added to these fees.

If some of your inventory is not sold for a long period of time and disposal is however beneficial then their removal then a seller can go for disposal of an item but certain fees will be charged for disposal.

FBA Disposal Fees

Small Size Items – INR 5

Standard Size Item – INR 10

Over Size Item – INR 25

Over Size Heavy and Bulky Items – INR 25 

An Additional 18% GST is added to these fees.

Watch this video will give you better understanding of Amazon FBA

Play Video

FBA sellers enjoy a flat rate for shipping their products across India