FBA Fees UK Explained for beginner
Hi guys
I am planing to send some stock to Amazon but I am a bit confused about the fees.
For example this Asin: B078VMS384.
Buying Price £3+Vat
Selling Price £6.6 + Vat
Selling on Amazon - £0.64
FBA Fees - £2.16 (Is this + Vat?)
Is Margins for this £0.91, is this correct? After I paid VAT.
Do I pay Monthly Storage Fees? And how is this working? Is this paid per day? Thank you
Seller_z6B2L9xab6HlP
You have to declare it to be paid as reverse charge, but then you claim it back immediately on the same return.
Buying price £3 + VAT (60p)
Selling price £7.92 (of which £1.32 is VAT)
Selling on Amazon (assuming it’s an 8% category) £0.63 +VAT(reverse charge)
FBA £2.16 + VAT(reverse charge)
- £7.92 - £1.32 VAT
- -£3.00 (+£0.60-£0.60)
- -£0.63 (+£0.13-£0.13)
- -£2.16 (+£0.43-£0.43)
= £0.81
Calculated daily but charged monthly. There’s no easy way to work it out exactly apart from managing your stock levels so there’s enough supply for about 30-60 days (or however long it’ll take you to restock, plus around a week to get to FCs after initial receipt at Amazon)
5 replies
Seller_xDtaDZ1Iek9Fq
as you are VAT registered, the VAT and storage is on reverse charge, so you do not pay it at all. the Storage fee is based on the volume of your stock per day, different charge between Oct - Jan.
the profit you will make minus the storage is
difference between selling and buying price = 3.60
difference in VAT = 0.60
Amazon selling fees = 2.80
so 0.20 in your pocket before storage and inbound shipping charge
hope this helps
Seller_amUAzjvL5uIzu
You have missed the per item fee of 75p or the proportion of the £25 monthly pro fee per item sold plus inbound shipping cost per item.
There is no way really to work out expected storage fee which is paid monthly,currently its £0.91 per Cu Ft of storage space per month,calculated daily.So probably no profit at that selling price.
Seller_z6B2L9xab6HlP
You have to declare it to be paid as reverse charge, but then you claim it back immediately on the same return.
Buying price £3 + VAT (60p)
Selling price £7.92 (of which £1.32 is VAT)
Selling on Amazon (assuming it’s an 8% category) £0.63 +VAT(reverse charge)
FBA £2.16 + VAT(reverse charge)
- £7.92 - £1.32 VAT
- -£3.00 (+£0.60-£0.60)
- -£0.63 (+£0.13-£0.13)
- -£2.16 (+£0.43-£0.43)
= £0.81
Calculated daily but charged monthly. There’s no easy way to work it out exactly apart from managing your stock levels so there’s enough supply for about 30-60 days (or however long it’ll take you to restock, plus around a week to get to FCs after initial receipt at Amazon)
