Amazon charges 3 main types of fees in UAE:
Use our Amazon fee calculator UAE to estimate your exact profit
Also referred to as "marketplace" or "category" fees. Referral fees are calculated as a fixed % of a selling price basis specific category and price band. Example, category "Baby" has 8% commission for products below 50 AED and 15% for items above
Also referred to as "delivery fees". This is charged by Amazon for picking and delivering your order in case of Easy Ship and product packing and delivering from Amazon FC in case of FBA. Fulfillment fees vary basis product dimensions and weights, the rates are introduced in multiple tiers
There are other charges which Amazon might impose on Selling Partner accounts, including inventory removal charge for FBA and performance penalties for Easy Ship (e.g. cancellation fee, late shipping fees) etc.
![[team] image of store owner or staff](https://cdn.prod.website-files.com/691816997ab743bfc7522b7c/6988372fef7d90fccc7b4377_home_service_2.avif)
Channel for fast-moving selection. Seller arranges for inventory inbound to Amazon Fulfillment Center. Amazon takes care of preping, packing, delivering, returns. Seller will pay for inventory removal if needed
Amazon carrier collects shipment from your premise and delivers to a customer. Inventory always stays and returns back to your premise
Seller takes care of preparing the shipment and delivering it - suitable for sellers with their own delivery network.
Branded T-shirt (30x20x1cm; 150g) listed for 80 AED:
1) Easy Ship Total before VAT: 12 AED + 14 AED+ 0.16 AED = 26.16 AED per unit (53.84 AED net margin)
Easy Ship Referral Fees: 12 AED (15% for Apparel category)
Easy Ship Fulfillment Fees: 14 AED Fulfillment Fees (Standard Tier)
*Expected Defective Returns Cost = 0.2% Unsellable Returns * 80 AED = 0.16 AED - (*average cost associated with unsellable, damaged, wrong returns)
2) FBA Total before VAT: 12 AED + 8 AED + 0.08 AED + 0.21 AED + 0.16 AED = 20.46 AED per unit (59.54 AED net margin)
FBA Referral Fees: 12 AED Referral Fees (15% for Apparel category)
FBA Fulfillment Fees: 8 AED (Standard Envelope size)
FBA Storage Fees: 0.08 AED (2 months 2 AED/cubic feet)
FBA Inbound Cost: 0.21 AED Inbound (Assumed at 1.43 AED /kg)
*Expected Defective Returns Cost = 0.2% Unsellable Returns * 80 AED = 0.16 AED - (*average cost associated with unsellable, damaged, wrong returns)
As you see, as long as you can manage fast inventory turnover and inbound cost, FBA costs tend to be lower. At the same time, with FBA your inventory is locked at the FC and will require carefull management of returns, removals, inventory health etc. This is exactly the primary trade-off between FBA and Easy Ship fulfillment channels
Reference:
Referral Fees for category "Apparel" 15% - 12 AED
Easy Ship Fulfillment fee "Standard Tier" - 14 AED
FBA Fulfillment fee "Standard Envelope" - 8 AED
FBA Storage fee 2 months (2 AED/cubic feet)*2 - 0.08 AED
Assumed FBA Inbound to Amazon FC - (1.43 AED /kg) - 0.21 AED
Expected Defective Return - 0.2% estimated average, can be higher on Easy Ship, but Seller incurs a charge on FBA inventory removal
![[background image] image of urban community scene (for a humanitarian aid nonprofit)](https://cdn.prod.website-files.com/691816997ab743bfc7522b7c/69d39b201ef87a76019dd089_1ad2a831-fd3e-45d3-a5a2-819aaed3a2fd.avif)
![[digital project] image of immersive gameplay](https://cdn.prod.website-files.com/image-generation-assets/1ea7f266-25f3-42df-84a4-2d302af027a3.avif)