Key terms and product attributes used to calculate fee rates
Fee rates are calculated using information such as the product category and shipping weight. Below is the glossary of key fee terms:
Fee term | Description |
Dimensional weight | Calculation of a volumetric weight of a package, using the package’s length, width, and height. |
Product size tiers | Measurement categories based on the unit weight, product dimensions, and dimensional weight of the packaged item. |
Product dimensions and volume | Measures the product’s size when fully packaged and ready to ship in accordance with FBA policies and requirements. |
Shipping weight | Item weight plus Amazon's packaging or dunnage to deliver an order to the buyer. The shipping weight is calculated based on the item’s unit weight or dimensional weight plus the packaging weight. |
Unit weight | Measures how much your product weighs when packaged. |
Amazon provides tools to help you estimate and track your fees.
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For all products, Amazon deducts the applicable referral fee percentage calculated on the total sales price, excluding any taxes calculated through Amazon tax calculation services. The total sales price is the total amount paid by the buyer, including the item price and any delivery charges or gift-wrapping charges. Referral fees vary by category.
Sellers pay a closing fee on every fulfilled order, this depends on Item price and includes shipping price.
Refund commission is applied when the order has been returned to the seller and seller has issued the refund to the customer. In the return order level transaction, 20% of the commission, that is, selling on Amazon fee will be withheld. Refund commission will only be charged for return reasons.
FBA Weight handling fees will be charged based on the item dimensions and weight. FBA pick and pack fee are the cost of packaging the products ordered (pick and pack).
Seller flex fees will be charged based on the item dimensions and weight. Technology fee will be applied on every order of seller flex and is same for all seller flex orders.
Sellers will be charged a weight handling fee for products delivered by Easy Ship.
Monthly inventory storage fees
Storage fees are charged for all units stored in an Amazon fulfillment center based on calendar month and your daily average volume, measured in cubic meters. The cubic meters of any unit will be based on the unit's size as properly packaged and ready for shipping to customers in accordance with the FBA Program Policies. Amazon will be entitled to make its own measurement of the cubic meters or weight of any packaged unit or representative sample thereof and in the event of any conflict between such measurement and information provided by the seller, Amazon's measurement will govern.
Long-term storage fee (LTSF) is charged every month for all the sellable inventory units that have been stored in Amazon fulfillment Centers for more than 180 days, that is, 6 months. On the last day of every month, also called the assessment day, the entire sellable inventory at Amazon fulfillment centers is assessed for LTSF.
Removal fees are charged per item removed. Typically, removal orders are filled within 10 to 14 business days. However, removal order processing may take up to 30 days or more during holidays and peak removal periods. You are charged for the removal after the inventory has been shipped or disposed of.
Sellers will be charged 100% of referral fee, if canceled on or before estimated ship date(ESD) or 150% of referral fee, if canceled after ESD of the value of the products in an order as cancelation charge for seller-fulfilled orders.
Sellers are charged a monthly high-volume listing fee (HVLF)of INR 0.5 per active non-media ASIN listings beyond a listing of 2,000,000 ASIN's effective July 1, 2019. HVLF will be charged on non-media ASINs only.
Shipping chargeback and giftwrap chargeback
Giftwrap and shipping chargeback will be applied on FBA or fulfillment center orders. Amazon applies shipping charges on FBA orders with product charges below INR 500, shipping charges levied on customer will be updated as shipping chargeback in order details.
Amazon applies giftwrap chargeback on FBA orders where-in customer has requested for giftwrap.
Lightning Deals are flash sales where a product is featured for certain hours on the Amazon Deals page, one of the most visited pages on Amazon. Lightning Deals are aimed at offering short-term, attractive prices for high demand products on Amazon, thereby increasing the chances of getting a sales lift for the sellers during the deal period.