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Why does amazon charge my customer shipping for my prime product, but still charges me the shipping fee?
I only sell with using FBA and my products are all prime.
When a prime customer buys my products, they get FREE 2 day shipping and I am charged a 15% referral fee and an FBA fee which breaks down into shipping, pick and pack and some other stuff.
This is Fine.
(example) Cost ($25) - referral fee ($3.75) - FBA fee ($4.40) = My net income ( $16.85)
When a non prime customer buys my products, they must pay around $5.99 for shipping and i can see that when i click on the order. Yet amazon still charges me for the FULL FBA fee. including shipping.
(example) Cost ($25) + shipping (5.99) - referral fee ($3.75) - FBA fee ($4.40) = My net income still ( $16.85)
Makes no sense
What gives? is amazon pocketing that shipping fee?
18 replies
Seller_ofOBVTQ7u4YSX
It makes perfect sense. Amazon is packing and shipping the items. You pay the same fees whether it is a Prime customer or non-prime customer making the purchase.
Seller_7DtoBRPbOopQZ
Amazon historically has lost money on shipping. There’s a number of delivery factors that add expense (say, residential delivery) or some such type. Amazon then charges some pre-ordained amount to the customer so they aren’t eating such a loss.
Seller_WQj6Zg0jH6DBA
Look at it this way:
Amazon stores, sorts, picks and packs (including packaging supplies) your item for $4.40.
They don’t charge an amount for the cost of “shipping labels”. FBA fees are for receiving, putting our inventory in a bin, storing it, moving it, picking it out of the bin, putting it in a box and handing it to the carrier.
Amazon pays for FBA shipping expense out of prime memberships and the non-prime shipping fees collected from non-prime buyers.
Since FBA sellers aren’t being specifically charged for shipping labels, there is nothing to credit or give for free.
Seller_gQYj2zQCuoz6y
Amazon is not charging you shipping either way. FBA fee does not include shipping.
If it is not a prime customer then they pay shipping.
If it is a prime customer then they also already paid indirectly, when they were charged the prime membership fee for the year. Yes, they have unlimited free shipping. But Amazon already figured that in. A prime customer will buy more of their stuff on Amazon than somewhere else.
What about a none prime member that orders more than $35 and also get free shipping? Is that also coming out from your fees? No. Amazon decided that it pays for them to give these customers free shipping. But it is not out of your pocket.
Seller_cIIdgKwVd6QF7
First of all, you need realize these are not your customers, they’re Amazon’s customers.
For FBA orders, you neither receive nor pay for shipping. Amazon initially gives it to you, and immediately takes it back in the form of a Shipping Chargeback.
So it’s a wash.
Funky
Seller_c40w4bJI8ifYY
I have a very similar issue.
I pay the $39.99 Professional Seller fee each month.
For each indivdual sell I self fullfill and pay the shipping cost.
Amazon charges the buyer shipping fee but the shipping fee is not reimbursed back to me. Amazon keeps the shipping fee.
dont ship enoough product out each month to qualify for Amazon fullfillment ths s why I must ship.
Amazon tells me this $4.59 is a fee. I requested a fee for what?
It was my understandng I was paying the $39.99 a month for referals and the advertisement.
Shouldnt we be reimbursed the shipping as they arnt shipping the product?
Seller_0vsJ5BdVQOqUM
The prime customer paid to have free shipping, and Amazon already got that money. A non-prime customer has not paid Amazon for shipping, so they are charged. How is this hard to understand?
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