In Amazon FBA there are some additional cost factors that come into play. Pricing of an item/product can be same or different w.r.t. selling product in non-FBA. Some additional cost factors include sending items to Amazon Warehouse, Amazon Warehouse rent (depends on item’s dimensions), fixed fee.
For FBA, additional shipping charges can’t be defined. This cost has to be included in the product’s price only. So, when changing an item fulfillment method to FBA if a seller is charging extra for shipping then s/he has to included in selling price only.
While defining price, following should be kept in mind by seller.
- Item Cost
- Amazon Commission
- Fixed Fee (it is more in FBA)
- Shipping Cost to FBA (is low, depends on weight and dimension)
- Space Rent Fee
- Shipping cost to Customer (it is less in case of FBA)
- GST (on successful sale)
- Income Tax (from profit)