FBA vs. FBM: Does Amazon pay for shipping?

By Oleg Mikhailenko
Published in Solutions
May 12, 2022
2 min read
Business Basics: Does Amazon FBA pay for shipping?

Sellers are bound to have tons of questions when they first start selling with the biggest ecommerce site in the world. Although the ecommerce juggernaut offers no end of blog articles and tutorials detailing the extent of their service and what exactly they offer to merchants, it can still help to have simple questions outlined in a graphic, no-nonsense way without any extraneous information. Today we’re discussing the Amazon seller shipping rates, and the following question: Does Amazon pay for shipping for sellers?

Although deceptively simple on the surface, this is actually a question that needs to be narrowed down a bit further. First of all, is your merchandise FBA (fulfilled by Amazon) or FBM (fulfilled by merchant)? If you’re asking specifically “does Amazon FBA pay for shipping”, the answer is absolutely yes. The FBA fee you pay based on the size and weight of your product (bear in mind that the calculated Amazon shipping weight vs item weight are two different things!) If you’re electing towards FBM instead,however, then the Amazon seller shipping cost is offset onto you, the merchant.

Although FBA can cost a bit more up front, many merchants find it to be a service that effectively pays for itself. Instead of having to arrange costly transportation and fulfillment and spend valuable time figuring out which 3PL company to use, once your merchandise is delivered, Amazon takes care of the rest. These products are typically available in Prime, meaning that your customers will receive their orders within two business days or less. Studies show that fast, free delivery is the best possible way to retain customers and gather new ones, after all. And although FBM orders are occasionally eligible for Prime, applications are only taken on an intermittent basis, which means you could have to wait weeks to receive your opportunity to apply. However, FBM allows you more freedom and flexibility to choose how your products are taken care of, without having to bow to anyone else’s restrictions.

In conclusion, if you choose the FBA option, your delivery and fulfillment costs will be paid using the fee you pay upon signup. Many merchants choose this option, and it’s an excellent one. However, it’s not necessarily the most cost-effective or efficient option, depending on your unique business needs. It’s really up to you to decide which option will be best. P2Pseller is of course here and happy to help you with every step of the way. We show all fees and costs 100% up front on our convenient website and mobile app, meaning no matter where you are or what time it is, you can make changes, view the status of your orders, and get peace of mind.


Tags

#amazon#seller#shipping#rates#fba#cost#weight#item
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Oleg Mikhailenko

Co-Founder, CEO P2Pseller

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