What Is FBA on Amazon, and How Can You Increase Profits?

What does it mean to be fulfilled by Amazon?

When you add FBA to your seller account, you’ll ship your inventory to Amazon for storage in their global warehouses. Then, when your products are ordered, Amazon takes care of shipping the items to your customers, as well as providing customer service.   

What are the FBA Amazon fees?

FBA does come with a cost. Fees will vary depending upon the country that houses your products, whether your inventory is standard-sized or oversized, and if it’s considered media or non-media. You’ll be charged a fee per cubic foot of storage for your inventory in Amazon’s facility, along with weight handling fees when the items are shipped. There may also be fees for removal of your inventory. It seems complicated, but you can use the FBA revenue calculator to get real-time cost comparisons between fulfilling orders yourself versus FBA.

Which countries have FBA?

Fulfillment centers are located in the US, Canada, the UK, Germany, France, Italy, Spain, Japan, and Mexico.

How do I reduce cross-border payment fees when selling internationally?

FBA is really convenient, especially for international sellers, but high margins on cross border payments can really eat into your profit margins. Amazon usually charges 3.9% when you’re transferring foreign payments to your home bank account.

With an multi-currency account from OFX, we give you a virtual account in your foreign markets and great exchange rates across many currencies, so you can save up to 75% when you bring your money home.*

This means that if you earn $30,000 on Amazon, you’ll save a whopping $720 by simply using OFX to transfer your money instead of Amazon or PayPal. That’s a big difference!

Set up a multi-currency account today to get the competitive edge you need in your global operations. You keep making those sales, and we’ll work on helping you keep more of your profits.

*Average savings based on a sample of published transaction fees for cross border payments provided by Amazon and PayPal dated 8.24.16. Quoted savings are not indicative of future savings. Third party intermediary fees may apply.

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IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. OzForex Limited (trading as OFX) and its affiliated entities make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.