How does Fulfillment By Amazon (FBA) work?

What is Fulfillment By Amazon program?

FBA is a fulfillment program that allows the sellers to experience faster delivery. The sellers can store the products on multiple warehouses, and once the orders are received, Amazon Transportation System (ATS) will pack the orders with Amazon-branded material, ships and delivers the product in one to two days.

This is how Amazon FBA works

  • You store your products to required Amazon warehouses
  • Once an order is received, you can process the order in Seller Central
  • Amazon takes care of packing the products, where the packaging is done with Amazon-branded material
  • Amazon Transportation System (ATS) ships and delivers the order in one to two business days
  • Amazon takes care of handling customer services

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What kind of products are highly preferable for FBA?

  • For products that have high-demand throughout India, you can opt for FBA. This will ensure maximum reach for your products
  • For products that require quick shipments, you can opt for FBA

If you wish to extend your product sales to various parts of geography, then you can opt for FBA, where you can store your products in multiple warehouses in India and once an order is received, Amazon Transportation System (ATS) packs, ships and delivers the order in one to two business days.

 

Benefits of FBA

  • Assured delivery by Amazon Transportation System in one to two days
  • Increased credibility and trustworthiness of customers, as the orders have an Amazon tag, and the products are labeled as “ Fulfilled By Amazon” on the product page
  • Helps to increase sales by maximizing the reach of your products in various geolocations
  • Benefits of customer services being handled by Amazon
  • Benefits of negative seller feedback being handled by Amazon. Know more (Blog link: https://insightmailer.com/3-ways-to-remove-negative-feedback-on-amazon/)
  • Aids in winning the buy box
  • Aids in improving the product ranking in Amazon search results
  • Benefits of product returns and exchanges handled by Amazon Transportation System (ATS)
  • You are provided an option to have your inventory returned to you at any time
  • You are also provided an option to pick up your inventory from Amazon warehouses at any time

About Amazon FBA fees (As per February 2019)

Fulfillment fees

Fulfillment fees depend on the size and dimension of the item

Weight of the item Longest side Median side Shortest side Category
<=1 Kg <= 12 inches (30.48 cms) <= 8 inches  (20.32 cms) <= 4 inches (10.16 cms) Is categorized as Small size items
<=12 Kg <= 20 inches (50.80 cms) <= 16 inches (40.64 cms) <= 10 inches (25.40 cms) Is categorized as Standard size items
>12 Kg > 20 inches (50.80 cms) > 16 inches (40.64 cms) > 10 inches (25.40 cms) Is categorized as Oversize items

*Subject to change

Weight Handling fees

 Weight Handling fee varies with product size and dimension

 

FBA fees for Small Size items

FBA Fulfilment Fees (INR)
Small sized Items Local Regional National
Pick & Pack Fee (per unit) 10 10 10
Storage Fee (per cubic foot/month) 20 20

20

Weight Handling Fees (INR)
Small sized Items Local Regional National
First 500 g (based on outbound shipping unit weight) 24 30 55
Each additional 500 g up to 1 kg (based on outbound shipping unit weight) 15 19 25
FBA fees for Standard Size Items
FBA Fulfilment Fees (INR)
Standard sized Items Local Regional National
Pick & Pack Fee (per unit) 15 15 15
Storage Fee (per cubic foot/month) 20 20 20
Weight Handling Fees (INR)
Standard sized Items Local Regional National
First 500 g (based on outbound shipping unit weight) 24 30 55
Each additional 500 g up to 1 kg (based on outbound shipping unit weight) 15 19 25
Each additional kg (based on outbound shipping unit weight) 7 8 13
FBA fees for Oversize Items
FBA Fulfilment Fees (INR)
Oversize sized Items Local Regional National
Pick & Pack Fee (per unit) 25 25 25
Storage Fee (per cubic foot/month) 20 20 20
Weight Handling Fees (INR)
Oversize sized Items Local Regional National
Upto S kg (fixed minimum fee) 

(based on outbound shipping unit weight)

70 85 135
       
Each additional kg (based on outbound shipping unit weight) 7 0 13
FBA fees for Oversize Heavy and Bulky Items
FBA Fulfilment Fees (INR)
Oversize Heavy and Bulky Items Local Regional National
Pick & Pack Fee (per unit) 50 50 NA
Storage Fee (per cubic foot/month) 20 20 20
Weight Handling Fees (INR)
Oversize Heavy and Bulky Items Local Regional National
Upto 12 kg (fixed minimum fee) 

(based on outbound shipping unit weight)

160 240 NA
Each additional kg (based on outbound shipping unit weight) 3 4 NA

*Subject to change

Key points: National shipments are not available for oversize heavy and bulky items

FBA fees for removal orders

FBA removal fees include 3 different parameters:

  • Self-pick up (charged per unit)
  • Standard shipping (charged per unit)
  • Expedited shipping (charged per unit)

 

FBA Removal fees
Item Type Self-Pickup (per unit) Standard Shipping (per unit) Expedited Shipping (per unit)
Small Size INR 5 INR 5 INR 15
Standard Size INR 10 INR 10 INR 30
Oversize INR 25 INR 25 INR 50
Oversize Heavy and Bulky INR 25 NA NA

*Subject to change

  FBA disposal fees

FBA Disposal fees
Item Type Disposal Fees (per unit)
Small Size INR 5
Standard Size INR 10
Oversize INR 25
Oversize Heavy and Bulky INR 25

*Subject to change

FBA fixed closing fees

 

FBA Fixed Closing Fees
Item Price Including Shipping Charges(INR) Select Categories All Other Categories
0-250 15 25
251-500 15 20
501-1000 15 15
1000+ 30 30

*Subject to change

To Conclude

Based on your business requirements, you can choose whether or not to go with FBA for each and every product on your inventory list.

 

 

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