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Amazon Fulfillment Fees

Warehouse Guy's Profile

Hello. We sell product which is fulfilled by Amazon. Meaning, we ship the inventory to Amazon warehouse and continue to own the same until it is sold. At this point, Amazon charges their Referral Fees and also 'Fulfillment Fees'. I know we can classify the Referral Fees as Expense. But, what about the 'Fulfillment Fees'? To elaborate, Fulfillment Fees comprises of Pick & Pack Fees, Shipping Fees to ship the product to the end consumer. Is this expense or COGS? Please help. Regards, AmGuy

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