It’s no secret that selling on Amazon during the holiday “peak” is more expensive than the rest of the year. Increased advertising expenses, more competition, and higher return rates, but the biggest expense to monitor during the holiday is your Amazon FBA fees. Typically, rates go up by about $.35 a unit which isn’t the worst – but that’s on top of the nearly 6% fee increase as of August 2022.
Fulfillment and storage fees are based on the size and weight of your item. Therefore product packaging can completely change your profit margin. The smaller and lighter the item, the less expensive it is to utilize FBA, especially during the holiday peak. We recommend that before you send your inventory to Amazon, assess your best sellers and see if there is a way to get as small and light as possible. For example, a common area of opportunity is when your item is polybagged. Amazon will measure the size of the polybag and use this to determine related fees – even though it's obvious the bag can be reduced down to a smaller size.
From Seller Central:
Is loose packaging counted toward item package dimensions for fee calculation purposes:
Yes, the measurement sensors that capture dimensions in our fulfillment centers will evaluate packaging edge-to-edge, including loose polybags and protruding handles. To minimize the dimensions of deformable packaging, ensure that the packaging does not exhibit loose material by using methods such as tight-fitting or vacuum-sealed polybags, or taped flaps so that the dimensions of the same item packages are as similar to each other as possible.
When possible, avoid the following items and packaging types, which cause the most common discrepancies:
Soft items that bulge out of their box packaging
Deformable or loose packaging, including plastic bags with excess material
Packaging with movable parts, including handles that pop out, or floppy string handles
Packaging that is close to the threshold between fulfillment-fee size tiers
Packaged items that vary in edge-to-edge dimensions, such as one package with a lot of excess polybag, and another package with a tight-fitting polybag
In order to not fall into a higher fulfillment and storage category, we recommend using the smallest polybag possible that will fit around your item, or consider shrink wrapping. Fortunately, if you find your product has been incorrectly measured by Amazon, you can request a physical investigation measurement request.
Fees for FBA services, such as fulfillment fees and storage fees, are based on item package weight and dimensions. If you believe that the item package weight or dimensions associated with your FNSKU are incorrect, you can submit a request for a remeasurement. We will locate a unit belonging to your inventory and remeasure it in one of our fulfillment centers. Your FNSKU’s updated weight and dimensions will apply across all marketplaces within the region where we received your request.
You can request a remeasurement through the Remeasure FBA products and confirm fees widget. Locate the widget by typing “remeasure” into the search bar.
If you are able to reduce the size of your product’s footprint, you still need to ensure you protect your product from shipping issues and also maintain the consumer experience. Find the balance that fits your product but rethinking your product’s packaging can put margin directly back in your pocket, especially if you have higher volume during the holiday selling period.
If you are not sure what the fees are, you can easily view them in Seller Central. Click the estimated fee for a detailed breakdown.