Managing fulfilment costs is one of the biggest challenges Amazon sellers face. Whether you’re using FBA (Fulfilled by Amazon), SFP (Seller Fulfilled Prime), or FBM (Fulfilled by Merchant), knowing the true cost of each model is key to protecting your profit margins.
Many sellers assume Amazon’s fulfilment services offer the best value, but fees can quickly add up—especially if you’re not actively tracking them. Between storage costs, fulfilment fees, returns processing, and peak season surcharges, you could be losing a significant portion of your revenue without realising it.
For UK sellers, Seller Central Amazon UK provides a breakdown of fulfilment costs, but keeping up with these ever-changing fees can be time-consuming. In this guide, we’ll break down the actual costs of Amazon fulfilment services and explore alternatives that might save you money.
What Does Amazon FBA Actually Cost?
Amazon FBA model is popular because it allows sellers to use Amazon’s logistics network, ensuring fast delivery and access to Prime customers. However, this convenience comes at price. Here’s a breakdown of the key FBA costs:
1. Fulfilment Fees (Per Unit)
FBA fulfilment fees are based on product size and weight. Amazon charges a per-unit fee that covers picking, packing, and shipping.
For example, as of 2024:
Standard-size (0-150g): Starts at £1.54 per unit
Standard-size (150-400g): Around £1.84 per unit
Large standard (400g-900g): £2.52 per unit
Oversized items (1kg+): Can go beyond £10 per unit
If you’re selling low-margin products, these fees can eat into your profits.
2. Monthly Storage Fees
Amazon charges for inventory stored in its fulfilment centres. These fees increase during Q4 (October–December), which catches many sellers off guard.
January–September: £0.42 per cubic foot
October–December: £1.07 per cubic foot
If your stock isn’t selling quickly, storage fees can drastically impact profitability.
3. Long-Term Storage Fees
Items stored for over 365 days incur an extra £4.30 per cubic foot or £0.11 per unit (whichever is greater). If you have slow-moving inventory, these charges can add up fast.
4. Removal & Disposal Fees
If you want to remove stock from Amazon’s warehouses, you’ll need to pay:
£0.50 – £1.50 per item for standard removals
£0.25 – £1.10 per item for disposals
Many sellers don’t factor this into their costs when sending stock to FBA.
5. Returns Processing Fees
For items that are eligible for free returns (e.g., apparel), Amazon charges the seller for return processing, which is equal to the original fulfilment fee.
Tired of FBA Fees? Seller Fulfilled Prime might be a solution—learn more in our blog:
Tired of FBA Fees? Seller Fulfilled Prime Might Be The Answer.
Seller Fulfilled Prime (SFP): The Hidden Costs of Prime Eligibility
Seller Fulfilled Prime (SFP) allows you to offer Prime shipping speeds while keeping control over fulfilment. However, meeting Amazon’s strict performance metrics can be expensive.
To qualify, you must:
Offer 1-day delivery for Prime customers Maintain a 99% on-time shipping rate Use Amazon-approved carriers (which can be more expensive) Provide free returns and top-tier customer service
While SFP gives sellers more control, the costs of premium delivery services and handling returns can make it less viable for some businesses.
Get the full breakdown of SFP requirements and costs:
Everything You Need to Know About Seller Fulfilled Prime
Fulfilled by Merchant
Fulfilled by Merchant (FBM) allows sellers to handle fulfilment independently, avoiding Amazon’s storage fees, fulfilment charges, and return processing costs. While it requires an efficient logistics setup, FBM can be a much cheaper alternative—especially for slow-moving products, bulky items, or sellers looking to avoid Amazon’s peak-season surcharges.
How Much Can You Save with FBM vs. FBA?
Here’s a cost comparison based on a standard-size product (500g) selling for £20:
PackPro: A Cost-Effective 3PL Solution for Amazon Sellers
At PackPro, we help sellers reduce fulfilment costs while maintaining Prime-level service. Whether you use FBA, SFP, or FBM, our warehousing, pick-and-pack, and shipping services are far more affordable than Amazon’s fulfilment fees.
We also provide: FBA Prep Services – Labelling, bundling, and packaging for Amazon compliance Same-Day Dispatch – Ideal for SFP sellers needing fast shipping Branded Packaging – Strengthen customer loyalty with custom packaging
Many Amazon sellers switch to a 3PL once they realise how much they’re paying for Amazon’s fulfilment services.
