Imagine you’re selling adorable handmade mini-toys with Amazon FBA. At first, your lightweight, compact product only incurred a $2.50 fee. But after adding some fancy packaging, suddenly, that fee jumped to $10!
That’s a big bite out of your profits! If you’re wondering how a little extra bubble wrap could cost you so much, it’s because of this FBA fee called the pick-and-pack fee.
In this post, we explain exactly how FBA pick and pack fees work and provide key tips for optimizing your packaging and minimizing these fulfillment expenses. So, let’s get started!
Table of Contents
TL;DR - Breakdown of FBA Pick and Pack Fees
Here’s a quick summary of what you need to know about FBA pick and pack fees:
- These are fees Amazon charges per item to retrieve, pack, and ship your products.
- The fees depend on each item’s size tier, weight, and category.
- Fees can range from $3.06 for small, light products to over $200 for big, heavy items.
- You get charged every time an order ships out, not just when sending inventory to Amazon.
- Optimize packaging and learn Amazon’s size and weight groups to lower fees.
These fees vary widely and can significantly impact profit margins if not optimized. Also, note that Amazon sometimes damages or loses inventory. Or you may get overcharged in fees. In these cases, you can claim reimbursements from Amazon by providing proof.
Many sellers don’t know they can get this money back, so they lose out! At Getida, we help you get this money.
We use proprietary technology to audit your past and ongoing FBA transactions to find eligible discrepancies. Then, our experts handle the entire claims process for you so that you can enjoy extra profits.
Sign up for Getida today and see how much you may qualify for; your first $400 in claims will be exempt from service charges!
What is the Amazon Pick and Pack Fee?
The FBA pick and pack fee, now called the FBA fulfillment fee, is charged per unit fulfilled. It covers Amazon’s costs for picking, packing, and shipping an order on your behalf.
It is based on the item’s:
- Product category: General merchandise, apparel, dangerous goods, etc.
- Size tier: Small, large, oversized, etc.
- Shipping weight: Weight used to assign a fee tier – dimensional or unit weight.
The pick and pack fee covers Amazon’s costs to:
- Find your products in the Amazon fulfillment center
- Retrieve the item from its storage location
- Place the item in the appropriate packaging materials
- Add any necessary padding or protective elements
- Seal the box and add a shipping label
These fees are designed to compensate Amazon for the labor and materials involved in preparing your products for shipment to customers.
The amount you pay varies depending on many factors we’ll explore later in this article.
How Often Are FBA Pick and Pack Fees Charged?
The FBA pick-and-pack fee is charged per unit, so it applies each time an item sells and Amazon fulfills the order.
Unlike monthly storage fees based on average daily inventory volumes, this variable cost is tied directly to order volume—the more you sell, the higher your overall pick-and-pack expenses.
For example:
- If you sell 100 product units monthly, you’ll be charged 100 separate pick-and-pack fees.
- These fees are deducted from the proceeds of each sale, not as a bulk charge at the end of the month.
How the Pick and Pack Fees Affect Your Profit Margins
FBA pick and pack fees can make up a substantial percentage of total selling costs on Amazon. So, even small increases can impact profitability, especially if you’re selling cheap items or things that make little profit.
Let’s say you’re selling something that:
- Costs you $10 to make or buy
- You sell it for $25
- Amazon charges $3.50 for pick and pack
- Other Amazon fees are $2.50
- You end up with a $9 profit
In this case:
- The $3.50 pick-and-pack fee is 14% of your $25 selling price
- It’s also almost 39% of your $9 profit
Now, imagine Amazon increasing this fee by just $0.50. It might not seem like much, but that 14% jump in fulfillment costs would directly affect your profits.
- If you sell 1,000 units a month, that small $0.50 increase means $500 less profit each month.
- Over a year, that’s $6,000 less in your pocket.
Amazon usually updates these fees once a year, so your pricing strategy must keep up with the fee adjustments.
3 Types of FBA Pick and Pack Fees
There are three primary types of FBA pick and pack fees:
1. FBA Fulfillment Fees: Non-Apparel Products
For most standard-sized non-apparel items, FBA fulfillment fees follow the structures below.
- Small Standard Items
- 2 oz or less: $3.06
- 2+ to 4 oz: $3.15
- 4+ to 6 oz: $3.24
- 6+ to 8 oz: $3.33
- 8+ to 10 oz: $3.43
- 10+ to 12 oz: $3.53
- 12+ to 14 oz: $3.60
- 14+ to 16 oz: $3.65
Covers smaller items like phone cases, beauty items, small household goods
- Large Standard Items
- 4 oz or less: $3.68
- 4+ to 8 oz: $3.90
- 8+ to 12 oz: $4.15
- 12+ to 16 oz: $4.55
- 1+ to 1.25 lb: $4.99
- 1.25+ to 1.5 lb: $5.37
- 1.5+ to 1.75 lb: $5.52
- 1.75+ to 2 lb: $5.77
- 2+ to 2.25 lb: $5.87
- 2.25+ to 2.5 lb: $6.05
- 2.5+ to 2.75 lb: $6.21
- 2.75+ to 3 lb: $6.62
- 3+ lb to 20 lb: $6.92 plus $0.08 per 4 oz over 3 lb
Includes larger products like appliances, bulk bundles, etc.
- Large Bulky Items
- $9.61 base fee for the first lb
- $0.38 per lb additional, assessed in 1 lb billing intervals
- This applies to items 0 to 50 lbs
- Extra-Large Items
- 0 to 50 lbs: $26.33 base fee, $0.38 per lb
- 50+ to 70 lbs: $40.12 base fee, $0.75 per lb over 51 lbs
- 70+ to 150 lbs: $54.81 base fee, $0.75 per lb over 71 lbs
- 150+ lbs: $194.95 base fee, $0.19 per lb over 151 lbs
Cover heaviest items like large furniture, exercise equipment, etc.
2. FBA Fulfillment Fees: Apparel Products
For apparel items, the FBA fulfillment fee structure follows below rates:
- Small Standard Apparel Items
- 4 oz or less: $3.27
- 4+ to 8 oz: $3.42
- 8+ to 12 oz: $3.72
- 12+ to 16 oz: $3.98
Examples: Socks, jewelry, hats, gloves
- Large Standard Apparel Items
- 4 oz or less: $4.25
- 4+ to 8 oz: $4.45
- 8+ to 12 oz: $4.67
- 12+ to 16 oz: $5.12
- 1+ to 1.5 lb: $5.90
- 1.5+ to 2 lb: $6.14
- 2+ to 2.5 lb: $6.60
- 2.5+ to 3 lb: $6.81
- 3+ lb to 20 lb: $6.92 plus $0.16 per 1/2 lb over 3 lb
Examples: T-shirts, polos, sweatshirts, uniforms, dresses, skirts, non-bulky jackets and coats
- Large Bulky & Extra Large Apparel Items
- Large Bulky Apparel – same as non-apparel
- Extra Large Apparel – same as non-apparel
Examples: Thick cold weather apparel like parkas, heavy-knit sweaters, fleece, bulky sweatshirts, etc.
3. FBA Fulfillment Fees: Dangerous Goods
For regulated dangerous items requiring special handling, the following higher fees apply:
- Small Standard Hazardous
- 2 oz or less: $4.03
- 2+ to 4 oz: $4.09
- 4+ to 6 oz: $4.16
- 6+ to 8 oz: $4.22
- 8+ to 10 oz: $4.30
- 10+ to 12 oz: $4.36
- 12+ to 14 oz: $4.41
- 14+ to 16 oz: $4.47
- Large Standard Hazardous
- 4 oz or less: $4.50
- 4+ to 8 oz: $4.71
- 8+ to 12 oz: $4.94
- 12+ to 16 oz: $5.14
- 1+ to 1.25 lb: $5.59
- 1.25+ to 1.5 lb: $5.97
- 1.5+ to 1.75 lb: $6.12
- 1.75+ to 2 lb: $6.26
- Large Bulky Hazardous
- $10.33 base fee first lb
- $0.38/lb additional in 1 lb intervals
- 0-50 lbs
- Extra Large Hazardous
- 0-50 lbs: $28.44 base fee, $0.38/lb
- 50-70 lbs: $43.33 base fee
- 70-150 lbs: $61.94 base fee
- 150+ lbs: $219.53 base fee
These fees account for added storage precautions to ensure safe handling. Be sure to check if your goods meet Amazon’s criteria for dangerous items. The surcharge can eat into margins if not accounted for.
Strategies to Minimize Pick and Pack Fulfillment Costs
The following tactics can help sellers optimize packaging, storage, and shipping to reduce FBA pick and pack fees:
- Optimize Product Packaging
- Reduce package size and weight wherever possible.
- Use lightweight, compact packaging materials.
- Avoid unnecessary packaging that could push your product into a higher fee tier.
- Understand and Target Size Tiers
- Study Amazon’s size tier definitions carefully.
- Design or adjust your product packaging to fit within lower-cost tiers.
- Even small reductions in size or weight can lead to substantial savings if they change your product’s tier.
- Use Amazon’s Packaging Requirements
- Follow Amazon’s guidelines for product prep and packaging.
- This can help avoid additional fees for improper packaging.
- Consider Product Bundling
- Bundling multiple items can sometimes lower overall fees than selling items individually.
- Monitor Your Product Dimensions in Amazon’s System
- Regularly check that Amazon has the correct dimensions for your products.
- Incorrect measurements can result in higher fees.
- Utilize Amazon’s FBA Small and Light Program
- For eligible small, light items, the Small and Light program offers lower fulfillment fees.
- Audit Your FBA Fees
- Regularly review your FBA fees for discrepancies.
- Even minor errors can add up over time, potentially costing you significant profits.
At Getida, we can help you ensure you’re not overpaying. Our automated dashboard technology can identify potential overcharges and damaged/lost inventory discrepancies that you might miss while reconciling manually.
We also recover any funds you’re owed by managing the claims process.
Why leave money on the table? Sign up with Getida today for an audit review of your Amazon account and start maximizing your FBA cost savings.
How to Calculate Amazon Pick and Pack Fees
Amazon provides a monthly FBA fee estimate report with pick and pack rates broken down by ASIN based on current size and weight data.
However, take care when using third-party FBA calculators, as many do not account for the current year’s adjusted tiered pricing and separate apparel categories. Be sure any estimates reflect the latest rates.
Manually, you can determine the fees using the following steps:
- Determine Your Product’s Size Tier
- Measure your product’s dimensions and weight.
- Use Amazon’s size tier definitions to categorize your product.
- Find the Corresponding Fee
- Refer to Amazon’s current fee schedule for your product’s category and size tier.
- Consider Additional Factors
- Some products may incur additional fees (e.g., clothing, dangerous goods).
- Calculate for Multiple Units
- Remember, the fee applies to each unit sold, not each order.
For instance, a 12 oz Apparel item with 16 x 11 x 2 inches dimensions falls into the large standard tier. The 12-16 oz pick and pack rate is $5.12, which would be multiplied by expected sales to calculate the estimated monthly fulfillment cost.
Is There a Good FBA Pick and Pack Fee Calculator?
For an easy way to estimate updated rates, use the official FBA Calculator provided by Amazon.
It automatically computes the latest pick and pack fees based on inputs of ASIN categories, weights, and dimensions.
It also includes current calculations for other essential FBA expenses, such as referral fees, storage costs, and more, to gauge overall profitability quickly.
The dynamic tool is ideal for modeling changes like shifting sizes and weights to find the optimal packaging balance to lower fulfillment fees.
You can also compare the costs of the different fulfillment models available. It’s a valuable asset for staying ahead of Amazon’s ever-evolving FBA fee changes.
Frequently Asked Questions (FAQs)
Let’s address some common questions about FBA pick and pack fees:
Can FBA Pick And Pack Fees be Avoided?
You can use Fulfilled by Merchant (FBM) and self-fulfill orders to reduce expenses related to storage, shipping, and some ancillary fees.
The trade-off is investing heavily in your own warehousing and logistics capabilities – an expensive endeavor requiring significant volumes to gain economies of scale matching Amazon’s rates and infrastructure.
Do Pick and Pack Fees Vary for Different Product Categories?
Yes, Amazon employs different pick-and-pack fee structures for general retail merchandise, dangerous goods, and apparel items.
Rates for apparel products run higher than those for similar-sized non-apparel SKUs. Handling dangerous goods requires even higher fulfillment fees, accounting for the additional caution needed.
Conclusion
As a major cost driver in the FBA model, tracking changes to pick-and-pack fees and rates is a must for profitable selling on Amazon.
Also, you must audit your FBA transactions and inventory regularly to avoid losing money for inevitable FBA discrepancies. These are easy to miss, as you’re handling many moving parts of your Amazon business.
The good news is that Getida is here to help. We audit billions in FBA transactions daily using proprietary technology to uncover overlooked reimbursements, recovering 166% more in FBA refunds. Our experts also handle claims processes with a 90%+ success rate.
Sign up with Getida today and get your first $400 in reimbursements free of charge. It’s time to fuel your Amazon business growth!
