My Amazon Guy

How to Reduce FBA Fees by 11% - Amazon Fee Calculator

January 11, 2022
My Amazon Guy
How to Reduce FBA Fees by 11% - Amazon Fee Calculator
Show Notes

Calculating Dimensional Weight https://docs.google.com/spreadsheets/d/1EhibaHbeUeyl6p07-tJ0FgpuZjtsunFe1m3uLul96hA/edit?usp=sharing

00:00 How to Reduce FBA Fees by 11%
00:13 AMZ FBA Fee increase
00:48 AMZ FBA Formulas
01:45 How to calculate dimensional weight
05:12 Download your google sheet tracker
06:20 Another thing to be aware of is the Storage Fees
08:47 In-Stock Head Start

Dimensional weight since Amazon is basing the FBA fee off of item weight or dimensional weight whichever is greater - dimensional weight is easy to calculate but people just make it way too confusing - it's simply L x W x H = X  then divide X by 139 to get Y  then you round to the next whole LB (a lot of ppl miss this part) - this is the weight that is used to calculate the FBA fee if using dimensional weight - so how do we use this info? you work backward to figure out if you can reduce your FBA fee by shrinking your dimensions slightly.. for example, if you have a product that weighs 2-3lbs but has the dimensions 16 x 9 x 3, your dimensional weight is 3.11 lbs (16*9*3 = 432 / 139 = 3.11) and because of that .11 lbs of extra-dimensional weight, you're bumped up to 4 lbs and the next pricing tier from $5.79 to $6.43 or $.64 more per unit or an 11% increase in fees.. so what do you do?  you have to determine whether it's reasonable that you can shrink your dimensional weight to 3 lbs or less by slightly reducing your dimensions L x W x H to equal less than 417 (which is just 139 * 3).  If you can shave just 1 or 2 inches off like 15.9*8.9* 2.8 = 396 / 139 = 2.85 lbs = bumped up to 3 lbs, not 4 - note dimensional weight is a factor in calculating your storage fees too.

NOTE: 18 x 14 x 8 is the Standard Size and if you exceed these dimensions, you're going to go into Small Oversized where the math is slightly different

Sometimes people want to know when they sent in a particular sku last, how many units were shipped in, etc but they think the only way is to go through the FBA shipments and find the last shipment for that sku.. Much easier/faster doing this - Reports - Fulfillment - Under Inventory - Received Inventory - simply enter sku and filter to date range wanted and it will identify all of the FBA shipments into the FC for that particular sku

How to see your estimated monthly storage fees for next month.. Reports - Fulfillment - Manage Inventory Health - in one of the very far right columns it gives you this amount - Momstir's estimate for November is $3164 right now.This is a good thing to know especially right now in the 4th qtr. This report also tells you ways that you can reduce your storage fees by doing certain things.

FBA fees: https://sellercentral.amazon.com/help/hub/reference/GABBX6GZPA8MSZGW

Inventory Health Report: https://sellercentral.amazon.com/reportcentral/MANAGE_INVENTORY_HEALTH/1

In stock head start: https://sellercentral.amazon.com/help/hub/reference/TBBP39NRMSMZK98

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About Steven Pope: Steven is the founder of My Amazon Guy. He started his career as a TV reporter in Idaho, then was an eCommerce Director for 10 years for brands ranging from Gold & Silver Coins to Women’s Plus Size Clothing. Steven created My Amazon Guy because of how difficult it has become to grow sales on Amazon. Steven owns MAG, My Refund Guy - a clawback FBA service, and Momstir - a Private Label FBA Wine Glass brand with the #1 funny wine glass on Amazon. He has more than 600 tutorial videos on YouTube showing how to handle ANY problem faced on Amazon. Steven also hosts a podcast with interviews from other Amazon experts. 

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