Do Chinese Companies Get Better FBA Pricing?
Serious question, if anyone actually knows. Does FBA charge China-based companies less money for FBA fees than U.S. Sellers? I'm trying to make the math work in my head how companies are selling items FBA Prime for less total price than our FBA costs are (forgetting about other manufacturing costs.) I'm honestly wondering how a product can sell for around 6 dollars when I know that combined FBA costs and the 15% referral fees are higher than 6 dollars. Unless these companies are fine losing money on every transaction (even if they were getting their product made entirely free, which they aren't), I don't get it. I know that China-based Sellers now represent more than 50% of all 3rd party Sellers on Amazon US. Thanks if you happen to know.
Do Chinese Companies Get Better FBA Pricing?
Serious question, if anyone actually knows. Does FBA charge China-based companies less money for FBA fees than U.S. Sellers? I'm trying to make the math work in my head how companies are selling items FBA Prime for less total price than our FBA costs are (forgetting about other manufacturing costs.) I'm honestly wondering how a product can sell for around 6 dollars when I know that combined FBA costs and the 15% referral fees are higher than 6 dollars. Unless these companies are fine losing money on every transaction (even if they were getting their product made entirely free, which they aren't), I don't get it. I know that China-based Sellers now represent more than 50% of all 3rd party Sellers on Amazon US. Thanks if you happen to know.
2 replies
Christine_Amazon
Hello @Seller_0D3VGuKcH4QUw
Christine here from Amazon Forums
No, Amazon does not charge different FBA fees based on a seller's country of origin. The FBA fee structure is standardized for all sellers regardless of their location. This is a firm policy.
However, I can explain several legitimate factors that enable some sellers to offer such low prices:
- Volume-based shipping discounts: Large-scale sellers can negotiate extremely favorable rates with shipping partners for their bulk imports
- Integrated supply chains: Many Chinese sellers are directly connected to or own their manufacturing facilities, eliminating multiple middlemen
Different business models:
- Some use loss-leader strategies to build market share
- Others cross-subsidize from higher-margin products
- Many focus on extremely high-volume, low-margin operations
That said, if you notice listings that seem to violate Amazon's pricing policies or suspect prohibited practices, please report them through Seller Central. We investigate all credible reports of policy violations.
For U.S. sellers competing in these categories, I'd recommend:
- Focus on product differentiation
- Build strong brand value
- Consider unique value propositions beyond pure price competition
- Ensure your supply chain is optimized
- Review your cost structure regularly
If you need specific guidance on optimizing your FBA strategy, our Seller Support team is available to help analyze your particular situation.
Christine
