Amazon FBA is marketed as the ultimate convenience for e-commerce sellers. You ship your inventory to Amazon, and they handle the rest—storage, packing, shipping, customer service. Sounds great, right?

But here’s the truth: that convenience might be quietly draining your profits.

If you’re like most sellers, you’re probably overpaying without even realizing it. And Amazon’s not going to stop you—they’re making money from your oversight.

It’s time to take a hard look at the hidden FBA fees that could be sabotaging your margins.

1. The Oversize Trap

That item you think is just a little bulky? Amazon might be classifying it as oversize, and that classification comes with significantly higher fulfillment fees.

Even a slight packaging change could drop you into a lower fee tier. We're talking about saving dollars per unit—and those dollars add up fast.

What to do:

  • Measure your packaged products precisely.
  • Audit your listings for misclassified dimensions.
  • Run tests with smaller packaging options (without damaging the product, of course).

2. Packaging That Punishes

Two extra inches in your packaging could push your product into a completely different fee bracket. That means you’re literally paying for air.

It’s a common issue—many sellers don’t optimize for dimensional weight (DIM weight), and Amazon makes no effort to warn you about it.

What to do:

  • Use right-sized boxes and custom inserts.
  • Eliminate unnecessary fillers.
  • Review your ASINs for packaging size vs. shipping tier.

3. Multi-Channel Fulfillment (MCF) Markups

Selling on Shopify or Walmart and using Amazon FBA to fulfill orders there? You’re paying a premium for it—likely more than you think.

Amazon’s MCF rates are significantly higher than FBA fees for orders placed on Amazon. Same service, higher price.

What to do:

  • Compare costs across 3PL options for your non-Amazon orders.
  • Reserve FBA for Amazon sales and explore cheaper MCF solutions elsewhere.
  • Run a cost-benefit analysis regularly.

The Bottom Line: Amazon’s Not Always Your Business Partner

Amazon doesn’t notify you about overcharges. They benefit when you overlook these fee structures. But with a few simple adjustments, you can:

✓ Shift to a lower fee tier
✓ Repackage smarter
✓ Save thousands per month

These aren’t massive changes—but they yield massive results.

If you’re curious which hidden fee is hurting your bottom line most, I broke it all down in a visual guide (linked above). Check it out, audit your listings today, and stop handing Amazon free money.

P.S. If you know an FBA seller, share this post. They’ll thank you later.

Bela Karwatowicz
Author

Marketing Coordinator

Bela Karwatowicz

A social marketing expert and "outside of the box" kind of thinker who loves brainstorm sessions on what makes a brand unique against competitors.

Updated:
July 17, 2024
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