Which FBA fee is calculated based on both product dimensions and weight, impacting profitability analysis?
The FBA fee calculated based on both product dimensions and weight, significantly impacting profitability analysis, is the Fulfillment Fee. This fee covers the cost of picking, packing, and shipping the product to the customer. Amazon determines the Fulfillment Fee by considering the product's size tier, which is based on its dimensions and weight. There are different size tiers such as Small Standard, Large Standard, Small Oversize, Medium Oversize, and Large Oversize. Each size tier has its own specific Fulfillment Fee rates. Amazon uses both the product's weight and dimensions to determine the applicable size tier, and therefore the associated Fulfillment Fee. Accurately calculating this fee is essential for sellers to determine the profitability of selling a product through FBA, as it directly impacts the overall cost of goods sold.