Amazon FBA UK fees can differ drastically depending on the products you sell, the services you use, and how effectively you manage your inventory. 

With Amazon UK FBA, sellers can focus on growing their business while Amazon takes care of storage, picking, packing, and shipping.

Overview of Amazon FBA UK Fees

The Amazon FBA UK program is a powerful solution for sellers looking to outsource logistics and tap into Amazon’s extensive customer base and fulfillment network. 

Storage fees are applied monthly based on inventory demand. To discourage overstocking, aged inventory surcharges are levied on items stored for more than 365 days, calculated as a flat rate per cubic foot or a percentage of the selling price, whichever is greater. 

Sellers can mitigate these costs by implementing strategies like promotions or automated inventory removal. When products are unsold or obsolete, disposal and liquidation fees are charged for removing inventory, with sellers having the option to discard or liquidate items. 

Finally, optional service fees cover additional services such as labeling, preparation, and specialized handling. 

Regularly reviewing these charges and optimizing inventory management are essential for maintaining profitability and staying competitive in the marketplace.

How to Calculate Amazon FBA Cost in the UK

Amazon UK Fulfillment fees, one of the most significant components, are determined by the product’s size and weight, with varying charges for standard and oversize items. 

These fees cover picking, packing, shipping, and customer service. Storage fees are applied monthly and depend on the volume of inventory stored in Amazon’s warehouses, with higher rates during peak holiday months from October to December.

Referral fees, another critical cost, are calculated as a percentage of the product’s selling price and vary by category, typically ranging from 6% to 45%, with the most common rate being around 15%. 

Inbound shipping fees include the costs of transporting inventory to Amazon FBA fees 2024 fulfillment centers, influenced by the shipping method, carrier rates, and distance. Sellers often manage these costs through Amazon’s partnered carrier program, which may offer discounts for bulk shipments. 

Additionally, sellers might lead to optional service fees for added benefits such as product labeling, preparation, or specialized packaging to meet Amazon’s compliance standards. 

Fulfilment Fees

Amazon fulfillment fees UK are a core component of the FBA program, covering essential services such as picking, packing, and shipping customer orders. 

The fee structure is determined by several factors, including size tiers, weight, and product category. 

Products are categorized into size tiers, small, standard, and oversize, and each tier has its own pricing structure. Heavier products and those in certain categories may lead to higher fees. For instance, a small standard-sized item weighing up to 150g typically costs around £1.80 in fulfillment fees, while a large oversize item exceeding 30kg may lead to fees of over £30 per unit. 

Sellers can optimize fulfillment costs by carefully designing product packaging to fit within smaller size tiers, thereby reducing handling and shipping expenses.  

Storage Fees

Amazon FBA Storage fees UK are applied monthly and depend on the volume of inventory stored in Amazon’s fulfillment centers, measured in cubic feet. The rates fluctuate throughout the year to reflect seasonal demand. 

From January to September, the cost is £0.75 per cubic foot, whereas during the peak holiday season from October to December, the rate increases to £2.40 per cubic foot, reflecting heightened demand for storage space during peak shipping periods. 

Sellers can minimize these costs by implementing efficient inventory management practices, such as monitoring sales forecasts to prevent overstocking, using inventory tools to maintain optimal stock levels, and offering promotions to clear out slow-moving items before high-demand seasons.

Low-level Inventory Amazon UK FBA Fee

Amazon also imposes low-level inventory fees to encourage better inventory management. 

These fees are applied when sellers fail to meet certain stock thresholds, which can impact profitability, especially for products with slow turnover. 

To avoid this fee, sellers should regularly monitor inventory performance reports, analyze sales velocity to make sure restocking aligns with demand, and adjust stock levels according to seasonal trends. 

Strategic inventory audits and restocking plans are important for maintaining optimal stock levels and avoiding unnecessary costs associated with low inventory penalties. 

FBA Aged Inventory Surcharge

The FBA aged inventory surcharge is a fee that Amazon imposes to incentivize sellers to manage their inventory efficiently, this applies to items stored in Amazon fulfillment centers for extended periods, specifically over 365 days. 

The fee is calculated based on the unit’s volume or weight, whichever is greater, and is charged monthly. 

For instance, aged inventory fees can reach £ 6.90 per cubic foot or £0.15 per unit, whichever is higher, depending on the circumstances. 

To minimize aged inventory surcharges, sellers should regularly review inventory performance reports and identify slow-moving products. 

Implementing strategies like running sales promotions, offering discounts, or bundling aged stock with popular items can help accelerate the turnover rate. 

FBA Disposal and Liquidation Fees

The disposal fee is added when sellers request Amazon to dispose of their inventory, while liquidation fees apply if sellers choose to liquidate their products instead. 

Disposal fees typically range from £0.25 to £0.50 per unit, depending on the size and weight, whereas liquidation fees are often a percentage of the item’s estimated value. 

Liquidation offers sellers an opportunity to recover some costs by selling unsold inventory to wholesale liquidators, which can be a cost-effective solution compared to disposal, which provides no monetary return. 

Both fees are necessary considerations for sellers aiming to manage their inventory efficiently and maintain profitability. 

To minimize these costs, sellers should implement robust inventory management practices, including regular audits, accurate demand forecasting, and timely removal of stagnant inventory. 

Using Amazon’s inventory performance dashboard can also provide valuable insights into stock levels and sales trends, helping sellers make informed decisions about removal or liquidation.

Amazon Optional Services Fees for UK

Amazon’s optional services for FBA sellers in the UK are designed to streamline inventory preparation and compliance with Amazon’s requirements. 

While convenient, they come at a cost that can significantly affect a seller’s overall expenses if used extensively. 

When items are returned in an unsellable condition, Amazon can repackage them for resale, saving time and effort for the seller. However, this service is charged on a per-unit basis, and the fees depend not on the product’s size and repackaging complexity. 

Understanding and adhering to Amazon’s packaging and labeling requirements can reduce the need for extra services. Third-party prep centers can also offer an alternative for cost-effective solutions without compromising compliance.