FBA fee comparison chart - fees are more than most people realize

Here's a nuts & bolts example of how the FBA fees work. This is a direct comparison for one of our top selling books. It's a small item, inexpensive to store and ship. We raised the price by $1.00 when sending it in to FBA, yet are still losing quite a bit, because most of our orders are international, and we lose out on the shipping reimbursement:

(click to enlarge)


Ed Buffey said...

That's quite interesting. Thanks for posting this comparison. It's definitely opened my eyes to the viability of FBA.

K♦FREE said...

What about sales velocity? Do you sell more at the same price and/or the $1 extra price? Just curious if volume can make up for the lower margins.

Anonymous said...

What are you selling that you get a $6.98 shipping reimbursement and it cost you only $1.50 ship??

That's a priority shipping reimbursement. It cost at least 4-5 dollars to ship priority.

Please clarify

Chapter 1 Books/Media said...

K4Free- Don't just look at the chart, re-read the post. It says "because most of the orders for this item are international...". Must be a small book, CD, DVD, etc., that they are selling. First class international (under 5 or 6 ounces) is easily under $2.00.

I doubt this comparison works for every item/model (such as a large book that cannot be shipped international), but I think that's kindof the point. FBA tries to tell us it's a 1-step solution, but there are many, many scenarios where it ends up costing a lot more.