Sellers often feel overwhelmed by the number of Amazon MCF fees they need to pay to do business on the platform.
Fortunately, this article details these MCF fee categories, costs, and other helpful information for Amazon FBA sellers, so keep reading for more facts!
What Are Amazon MCF Fees In 2023?
For fulfillment and storage of orders and products, Amazon charges MCF fees in 2023. These five tiers for MCF fulfillment fees are based on shipment speed, weight, and the number of units beginning at $3.99/unit. Likewise, storage fees are charged each month, based on size and weight, and start at $0.75/ cubic unit.
To help you get started, we have an overview of the different types of Amazon MCF fees, how much they cost, and more, so keep reading!
What Do Sellers Need to Know Before Starting on Amazon FBA?
When you first start on Amazon FBA, it can be a little overwhelming.
To start, sellers have to learn about Amazon MCF fees and how many different types of expenses there are.
It’s vital that you know the cost of each type of fee and what they cover to stay compliant with the Amazon rules and regulations.
What Are Amazon MCF Fees?
Amazon charges MCF Fees for services for sellers on its marketplaces.
Examples of these services include storing your items in fulfillment centers and processing transactions.
As an Amazon FBA seller, you’ll encounter a few different types of Amazon MCF fees. Here’s a breakdown of what you can expect:
- Monthly Storage Fees: Sellers are charged these monthly fees for any inventory stored in an Amazon fulfillment center. Beginning at $0.75/ cubic unit, these fees vary depending on the size and weight of your inventory.
- Pick, Pack & Ship Fees: Once an order is placed for an item from your inventory, it needs to be picked and packed by an Amazon employee until it is shipped. Sellers are charged one inclusive fee. Starting at $3.99/unit, this fee is a percentage of the order total, and it varies depending on product size, units ordered, and shipment speed.
To stay compliant with Amazon’s MCF rules and regulations, make sure you know all the different MCF fees and how much they cost.
That way, you can create a budget that allows you to cover all your MCF fees while still making a profit.
Does Amazon Provide a Discount for Multi-Unit Orders?
Since Amazon charges MCF fulfillment fees based on the number of units ordered, sellers receive a discount for larger shipments.
For example, for one small shipment weighing fewer than 2 oz, the standard shipping rate is $3.99.
However, if there are five or more orders of the same size, the rate drops to $1.79.
Does Amazon Charge Sellers for Long-Term Storage?
A few different types of storage fees can apply depending on how long sellers want Amazon to store their products.
In addition to paying an inventory cleaning fee every month, sellers can be required to pay charges for long-term storage for products stored for over a year.
For more information about these additional expenses, view this guide.
How Are the MCF Fees Structured?
Overall, the MCF fees are structured in 5 tiers and vary depending on the product size and the number of units.
Furthermore, fee structure can be categorized by shipping speed.
For additional reference, download Amazon’s handy MCF fee schedule.
Does Amazon Have a Calculator to Help Sellers Determine MCF Fees?
Rather than relying solely on the downloadable fee schedule, Amazon also provides sellers with an online cost calculator.
However, the seller must be logged into their account to use the calculator.
How Does Amazon Determine the Weight of a Shipment?
When an order is placed on Amazon, the shipping weight is calculated by adding the packaging and product weights.
Since packaging weighs more than just paper or cardboard, these materials need to be included in any estimates of what will make up one unit before they’re shipped off!
As an estimate, dimensional weight (length x width) divided by 139 can give sellers an idea of how much packing is needed.
What Happens If Sellers Don’t Pay Their MCF Fees?
If you don’t pay your MCF fees, Amazon can take several actions against you, including suspending your account or closing it entirely.
It’s essential to stay aware of all the different types of MCF fees and make sure you budget for them so that you can continue selling on Amazon.
To know more, you can also read our posts on Amazon vs eBay fees, what is Amazon Aurora, and Amazon merch fees.
Selling on Amazon can be a great way to profit, but it’s essential to be aware of the different types of Amazon MCF fees and how much they cost. By understanding these fees, you can budget for them and continue selling on Amazon without any problems.
If you’re feeling overwhelmed by Amazon MCF fees, don’t worry- you’re not alone! Many sellers feel confused and frustrated by the complex fee structure, but there’s help available.