In today’s world, Amazon is one of the biggest marketplaces to sell your product online. From the amount of reach and growth, it can give to your business to all the added benefits one can gain from selling on Amazon, it is an ideal choice. An added benefit is All your business purchases will receive a GST invoice, which will make you eligible to claim the input tax credit on select products.
All of these benefits are wonderful. But when it comes to generating said reports or handling all the data given out by Amazon it becomes a very tedious and long task to summarize this data and make it readable. Other than this amazon Charges Various Different types of fees on each order placed, and each charge has a different process of verification, which are very complicated to carry out.
Since these tasks are so lengthy and tedious many times certain mistakes or errors are overlooked and when a business sells crores worth of products even an error of 2% can cause a high loss for a company. So, what can one do to avoid such losses? A company cannot just overlook such losses when there is a way to assure you that these errors aren’t making you lose any money.
This is why Cointab has designed a system that will help overcome this problem. This software helps carry out the verification process at the click of a button. All a company needs to do is upload the data that requires verification, The system will verify every order and give an output that is easy to read and so a company can skip the tedious job of handling data and directly deal with errors if there are any.
These are the major Fees that amazon charges. Apart from these charges amazon also charges removal fees, order cancellation fees, TDS, TCS, Cost of Advertising, Transportation Charges, Storage Fee, etc.
Amazon Charges Shipping fees based on SKU weight, shipping zone (based on Ship from state and Ship to state), step level and fulfilment type.
First, we create the SKU master where we calculate volumetric weight and gross weight, whichever is higher is considered for calculation.
Once the Shipping Zone is determined, we then get the fulfillment type from the Disbursement report provided by amazon where AFN will be taken as FBA (fulfilled by Amazon) and MFN as Easy Ship.
The expected shipping fee is calculated by getting the quantity, Ship from the state, and ship to state from the MTR report which will give us the Shipping zone. Step Level will be decided by amazon based on the quarterly sale.
Your products will be classified as either Standard or Heavy Bulky.
An item is classified as Heavy & Bulky if it meets one or more of the following criteria:
For a standard-size items, the minimum chargeable weight is 500gms. For items more than 500gms, you will be charged in multiples of the price applicable for every 500gms.
The Amazon Easy Ship Weight-Handling Fees for an 800 gms package being shipped to a regional location will amount to INR 68 i.e., INR 51 (the charge for the first 500 gms) + INR17 (the charge for the next 500 gms).
Amazon Shipping Fees are computed on volumetric or actual weight, whichever is higher. Volumetric weight is calculated as Volumetric Weight (kg) = (Length x Breadth x Height)/5000 where LBH are in cm.
Referral Fees are charged based on Category, Amazon provides a Percentage of referral fees for all kinds of item categories which is provided in the report as a referral fee preview report.
Total Referral Fees = Item price x Referral Fee percentage
e.g., if you are selling a Book at ₹ 450, referral fee percentage is 4%, so Referral Fees = ₹ 450 x 4% = ₹ 18.
A closing fee is charged every time a product is sold on Amazon based on the price range of the product. This fee also varies based on the fulfillment channel one is using like FBA, Easy ship standard, easy ship Prime and seller flex.
Total Closing Fees = Fees based on item price & category
Total Closing Fees = Fees based on item price.
We then calculate the Closing fees accordingly and compare them to the fees charged by Amazon and declare the following accordingly:
Pick and pack fee is charged by amazon to those clients who use the FBA fulfillment. They then charge based on the rate card provided by them. We calculate this amount based on the rate card and then compare it with the fees charged by Amazon.
Amazon selects certain clients and provides them additional services in which clients can sell under the seller-flex fulfillment type. Technology fees are charged to these clients and these fees are based on their rate cards. We calculate these fees based on their rate card and any relevant information from the client and compare the amount to the amount charged by Flipkart and show the results as follows:
Contact Us to get your verification and reconciliation process automated.