Amazon Shipping Discounts Reshape FBA Fee Calculations
Amazon Targets Parcel Volume
Amazon Shipping is offering U.S. parcel rates that match or undercut FedEx and UPS as it seeks more business customers, Supply Chain Dive reported July 9. Logistics platform Loop said eligible residential shipments saved clients as much as $6 per package.
For one large retailer, Amazon Shipping covered more than 90% of distribution and reduced annual parcel spending by over 33% compared with FedEx, according to Loop.
Fewer Delivery Surcharges
Amazon said its service has no residential surcharge or weekend delivery fee. Pricing experts also cited surcharge waivers and lower fuel surcharges as reasons quoted costs can be simpler than traditional carrier contracts.
The reported savings are customer-specific, not a universal rate reduction. Package weight, destination, volume commitment and existing carrier discounts still determine the final cost.
Service Limits Still Matter
Amazon Shipping currently provides two-to-five-day ground delivery in the contiguous United States. It does not offer the same range of overnight and specialized services as FedEx or UPS, making it most relevant to high-volume retailers shipping lightweight parcels.
How to Update the Fee Calculation
Amazon Shipping is not an FBA fulfillment fee. China-based sellers should use its parcel quote as an FBM benchmark when deciding whether to send inventory into FBA.
The FBA calculation should include international inbound freight, customs costs, Amazon inbound placement charges, storage and fulfillment fees. The FBM comparison should include pick-and-pack labor, the Amazon Shipping label, packaging, returns and any uncovered destinations. Sellers should compare total cost per delivered order rather than a single headline rate.
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