How to Calculate Amazon FBA Fees in Canada

Amazon FBA Calculator Canada

Selling online has never been easier, thanks to platforms like Amazon which offers incredible opportunities for businesses of all sizes to reach a global audience. One significant Amazon service that has transformed how businesses operate is Fulfillment by Amazon (FBA). With FBA, sellers can take advantage of Amazon’s world class fulfillment and logistics services.  Sellers can store their products in Amazon’s fulfillment centers, which handle the storage, packaging, and shipping of products, and even customer service.

If you’re a seller based in Canada, comprehending the FBA fee structure can be a little complex, but it is crucial for profitable selling. In this article, we provide a simplified explanation of how to calculate Amazon FBA fees in Canada, focusing primarily on the uses of the Amazon FBA calculator Canada.

According to Amazon Seller Central Canada, the FBA fees are the costs associated with product storage in Amazon’s warehouses, handling, packing, and shipping, as well as customer service. Knowing how to accurately calculate these fees using Amazon FBA Calculator Canada is valuable as it equates to vital insight into your business’s profitability. Although it might seem overwhelming at the outset, with the right tools and guidelines, it becomes manageable and eventually simple.

FBA Fees To Consider

We’re really talking about two specific fees here: FBA Fulfillment Fees, and FBA Storage Fees.  Note though that Amazon also levies a Referral Fee, which is based on the category of goods you’re selling. This Referral Fee applies to all sellers on Amazon, and needs to be accounted for regardless of whether the seller uses FBA services.

FBA Fulfillment Fee

This covers the fulfillment of orders for your products, and it includes quite a bit of activity such as picking and packing the order, the shipping and handling costs, and also customer service and product returns. The fulfillment fee is based on the weights and dimensions of your products. Check the table below to find the Fulfillment Fee that applies to your products.

Size Tier	Shipping Weight	Fulfillment Fee
Envelope fulfilment fee per unit	First 100 g	CAD $4.46
	100+ to 200 g	CAD $4.71
	200+ to 300g	CAD $5.01
	300+ to 400g	CAD $5.28
	400+ to 500g	CAD $5.62
Standard fulfilment fee per unit	First 100 g	CAD $5.92
	100+ to 200 g	CAD $6.12
	200+ to 300g	CAD $6.36
	300+ to 400g	CAD $6.73
	400+ to 500g	CAD $7.23
	500+ to 600 g	CAD $7.40
	600+ to 700 g	CAD $7.71
	700+ to 800 g	CAD $7.95
	800+ to 900 g	CAD $8.25
	900+ to 1,000 g	CAD $8.49
	1,000+ to 1,100 g	CAD $8.58
	1,100+ to 1,200 g	CAD $8.84
	1,200+ to 1,300 g	CAD $9.04
	1,300+ to 1,400 g	CAD $9.29
	1,400+ to 1,500 g	CAD $9.60
	1,500+ to 9,000 g	CAD $10.32 + CAD $0.09/100g above first 1500g
Small oversize fulfilment fee per unit	First 500 g	CAD $15.43
	Each additional 500 g	CAD $0.46
Medium oversize fulfilment fee per unit	First 500 g	CAD $37.78
	Each additional 500 g	CAD $0.52
Large oversize fulfilment fee per unit	First 500 g	CAD $82.20
	Each additional 500 g	CAD $0.58
Special oversize fulfilment fee per unit	First 500 g	CAD $150.78
	Each additional 500 g	CAD $0.58

Low-Price FBA Fulfillment Fee

As of February 2024, Amazon offers their FBA services at a lower rate for low priced products.  If your product is priced under $11 (Canadian dollar), you will receive an FBA rate that is $0.55 lower than the standard rate.

Amazon has an adjusted calculator for their Low-Price FBA offering – find this here.

FBA Storage Fee

This is the cost of storing product in an Amazon warehouse, so that they can provide services in the FBA program. The Storage Fee is based on the average daily volume your product uses in the Amazon fulfillment center.

There is some variability to this fee depending on the time of year, with the last quarter of the  year from October to December costing more to store product than the rest of the year.  The storage fee breaks down as follows (Canadian dollar amounts shown):

Month	Standard Size	Oversize
January – September	$36 / cubic metre	$25 / cubic metre
October – December	$64 / cubic metre	$41 / cubic metre

FBA Fees Calculation

Amazon offers sellers an efficient tool known as the Amazon FBA calculator Canada, specifically designed to assist in FBA fees calculation. This calculator provides a simple and straightforward way to estimate FBA fees based on the product’s dimensions, weight, and category. It allows sellers to input the item’s price, its cost, and shipping fees to calculate the net profit and margin after considering Amazon’s fees. Essentially, the FBA calculator is a robust tool that can guide your pricing strategy, enabling you to remain competitive while still ensuring profitability.

Here is a link to the Canadian calculator. Simply change the drop down to the Canadian flag. As well, stay tuned for more details on how calculate. We are building a calculator to help with this.

Understanding the key components of FBA fees is of paramount importance when conducting this calculation. The primary components include the referral fee, which is a percentage of the product’s selling price, and the variable closing fee, applicable to some categories. Other crucial elements are the fulfillment fee, covering picking, packing, shipping, and handling, customer service, and product returns. The storage fee, which varies based on the time of the year and the amount of fulfillment center space your products occupy, is also a critical consideration. By comprehending these components, you can use the Amazon FBA calculator more effectively in your calculation of the Amazon FBA fees.

The question of calculating the Amazon FBA fees yourself or necessitating professional assistance is a valid consideration. While the process can be complex, especially for beginners, with the right tools like the Amazon FBA calculator, understanding of key components, and practice, it is something you can do independently. However, professional aid can provide reassurance, especially for larger inventories or for those who may require more detailed financial analysis and insights.

Conclusion

In conclusion, as an Amazon seller in Canada, understanding how to calculate Amazon FBA fees and realizing the significance of this process is crucial to your business’s profitability. Armed with the knowledge of different components that give rise to these fees and the handy tool ‘Amazon FBA Calculator Canada’, you can monitor your expenditure, make appropriate pricing decisions, and ultimately thrive as an Amazon FBA seller.

Understanding the FBA fees and its calculation is not about complexity; it is more about being aware. This awareness about what fees you will be charged, how they are calculated, and factors that affect them will equip you with the critical capability to predict your business costs accurately. The Amazon FBA calculator Canada is an efficient tool, serving as an invisible assistant that helps you calculate FBA fees and shape your pricing strategy, ensuring your business remains profitable.

Key Points

To summarize, the key points covered in this article are:
– Amazon Seller Central Canada offers the Amazon FBA service, whereby the storage, packaging, shipping, and customer services are handled by Amazon.
– The Amazon FBA calculator Canada is a reliable tool designed to aid in the estimation of FBA fees.
– The key components of FBA fees are the referral fee, variable closing fee, fulfillment fee, and the storage fee, among others.
– Calculating Amazon FBA fees independently is plausible with the correct tools and understanding, yet professional assistance can prove immensely beneficial for large inventories or more detailed financial analysis.