Amazon charges a fee for the sellers using Amazon as a marketplace to sell their products. Amazon Charges Shipping fees based on SKU weight, shipping zone (based on Ship from state and Ship to state), step level, and fulfillment type.
Amazon allocates the zones for the orders based on these details. Once the Shipping Zone is determined, the fulfillment type will be determined by Amazon. If you use Easy Ship or Fulfillment by Amazon (FBA), Amazon will deliver your products to the customer and charge you a fee. (If you are choosing to Self-Ship, you will have to bear the cost of shipping and deliver through 3rd party courier service/own delivery agents).
Your products will be classified as either Standard or Heavy Bulky.
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.
For 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.
Total Shipping Fees = Fees based on the item weight (size guidelines) and distance (shipping regions)
For Self-ship, there are no shipping fees as you will have to take care of delivery yourself or with the help of a courier partner, who you will have to pay directly for the cost of delivery.
As you can see there are so many factors to calculate shipping fees and if one were to try to calculate and verify this fee with amazon it would be almost close to impossible. This is where a system made by Cointab helps. This system takes all the data and calculates all the necessary data and verifies it and compares it and gives an output that is very easy to read and work with.
The System calculates the Fulfillment type and the shipping zone and weight based on the client’s SKU and Disbursement report.
To get sort this data the system has a rate card which is configured with the Amazon rate cards for deciding the weight, zone, and fulfillment type. It also accounts for the Step level awarded to the sellers by Amazon.
When the data of orders are received by the system it gets allocated to the respective column and the data for each order is then calculated respectively.
The System then displays the output for each order as shown above. It shows the shipping fee charged by Amazon. The Expected Shipping fee, which is the one calculated by the system based on the necessary data. It then shows the difference between the fee charged by Amazon and the calculated one and shows if amazon has overcharged and by how much. The system then compiles all the data of every order together and displays an output that is very easy to read as displayed below.
The output shows: