FBM Costing Breakdown

FBM Costing Breakdown


FBM Costing


📌 Quick Reference Summary

  • First Mile = charged per consignment/waybill delivered and returned (currently not charged until end of 2025).
  • Final Mile = charged per unit delivered and returned.
  • Storage Fees = only charged if average stock cover exceeds 35 days.

Understanding the costs for Fulfilled by Makro (FBM) will help you manage your pricing and profitability. Below is an outline of the key cost components.


First Mile (Seller to Fulfilment Centre)

  • Charged per consignment/waybill delivered and returned.
  • ⚠️ Currently no charge until the end of 2025.
  • A fee will be introduced in the future (see table below).
  • Important: First Mile is based on the total size and weight of the box (or boxes) you send to the Fulfilment Centre, not per unit of product.

First Mile Delivery Fee (per consignment/waybill, excl. VAT)

Cube (cm³) Size Category 0–4.99kg 5–14.99kg 15–49.99kg 50kg+
0–15,000 Small R45 R70 R250 R500
15,001–30,000 Medium R50 R75 R275 R550
30,001–60,000 Large R65 R100 R360 R720
60,001–150,000 X-Large R85 R135 R500 R950
150,001–350,000 Bulky R100 R155 R600 R1,200
>350,000 Oversized R135 R300 R800 R1,500

Final Mile (Fulfilment Centre to Customer)

  • Charged per unit delivered and returned.
  • FBM uses the same rates as FBS (see matrix below).
  • ⚠️ Important: Each item sold and shipped to the customer, and each unit returned from the customer to the FC, incurs the applicable fee.
  • To reduce transport costs, consider creating a Pack of listing (e.g. selling 2, 4, or 6 units together as one sale). Learn how here: Creating a Pack of Product Listing.

Transport Fee Matrix (Final Mile & Returns)

Category Cube (cm³) Example Products Light (0–4.99kg) Medium (5–14.99kg) Heavy (15–49.99kg) Extra Heavy (50kg+)
Small 0 – 15,000 Small electronics, gadgets, cosmetics, cleaning R34 R44 R100 R100
Medium 15,001 – 30,000 Electronics, accessories, home décor R45 R60 R100 R120
Large 30,001 – 60,000 Microwaves, appliances, coffee machines, small furniture R52 R64 R110 R120
Extra Large 60,001 – 150,000 Appliances, furniture, home décor R70 R110 R150 R200
Bulky 150,001 – 350,000 Washing machines, air conditioners, desks R250 R300 R500 R1000

Storage Fee

When a product is sent to our fulfillment center for the first time or has not been in stock for a period of 3 months or longer, no fee will be calculated for the respective prorate period. The storage fee calculation is initiated on the 1st day of the new month.

The calculation summary shows how the storage fees are charged using the average stock and average sales for the respective period.


Daily Stock & Sales Breakdown (Example: May)

Day Kettles – Stock Kettles – Sales Air Fryer – Stock Air Fryer – Sales
1 20 0 20 0
2 20 1 20 2
3 19 0 18 0
4 19 0 18 0
5 19 1 18 0
6 18 0 18 0
7 18 0 18 5
8 18 0 13 0
9 18 1 13 1
10 17 0 12 0
11 17 1 12 0
12 16 0 12 0
13 16 0 12 0
14 16 1 12 1
15 15 0 11 0
16 15 0 11 0
17 15 1 11 0
18 14 0 11 0
19 14 0 11 1
20 14 1 10 0
21 13 0 10 0
22 13 0 10 0
23 13 0 10 0
24 13 1 10 1
25 12 0 9 0
26 12 0 9 0
27 12 0 9 0
28 12 0 9 3
29 12 0 6 0
30 12 1 6 0
31 11 0 6 0

Calculation Summary

Product Avg. Stock Avg. Sales Avg. Days Stock Cover
Kettles 15,26 0,29 52,62
Air Fryer 12,10 0,45 26,89

Formula: Average Days Stock Cover = Average Stock ÷ Average Sales

  • For Air Fryer, no storage fees apply as the average days stock cover was less than 35 days.
  • For Kettles, storage fees apply as the average days stock cover was greater than 35 days.

Storage Fee Calculation

  • The storage fees rate table defines the rate per product based on volumetric measurements.
  • In this example, the storage fee for the kettle is R5.00 per unit per month (exclusive of VAT).

Formula: Average Stock × Storage Rate (15,26 × R5.00) = R76.29

👉 The seller will be charged R76.29 (excl. VAT) for May.


Storage Fees Rate Card

Size Category Cube (cm³) Stock Cover ≤ 35 days Stock Cover > 35 days
Small 0 – 32,000 R0 R1.60
Medium 32,001 – 61,000 R0 R5
Large 61,001 – 324,000 R0 R15
Extra Large 324,001 – 468,000 R0 R25
Bulky 468,001 – 648,000 R0 R80
Oversized 648,001 – 1,260,000 R0 R140
Extra Bulky or Greater > 1,260,000 R0 R250

Zero Sales Scenario

A 90-day extension rule is followed when there are zero sales for the month. This means the average stock and average sales range is extended 90 days prior (up to the point of the last sale) in order to determine the average days stock cover. The above calculation still applies but the period will be extended up to the last sale within the past 90 days and not the past month. The average stock used to calculate the storage fee will still be based on the last month.

If there are zero sales in the 90-day period or sale-to-stock ratio is less than 1%, the days count method is used. The sale-to-stock ratio is the average sales divided by the average stock over the 90-day period (multiplied by 100).


Days Count Method

The days count method counts the number of days stock was in the FC over the 90-day period and utilizes this as the ‘average days stock cover’. This method is used when there are zero sales in the 90-day period or the sale-to-stock ratio is less than 1%.

As an example: let’s assume the kettles did not have any sales for the month of May and the following data applied:

90-Day Daily Stock & Sales Breakdown (Kettles: Mar–Apr–May)

Day May – Stock May – Sales April – Stock April – Sales March – Stock March – Sales
1 20 0 22 0 32 0
2 20 0 22 0 32 0
3 20 0 22 0 32 0
4 20 0 22 1 32 0
5 20 0 21 0 32 0
6 20 0 21 0 32 1
7 20 0 21 0 31 0
8 20 0 21 0 31 0
9 20 0 21 0 31 0
10 20 0 21 0 31 1
11 20 0 21 0 30 0
12 20 0 21 0 30 0
13 20 0 21 0 30 0
14 20 0 21 0 30 1
15 20 0 21 0 29 0
16 20 0 21 0 29 0
17 20 0 21 0 29 0
18 20 0 21 0 29 1
19 20 0 21 0 28 0
20 20 0 21 0 28 0
21 20 0 21 0 28 0
22 20 0 21 0 28 1
23 20 0 21 0 27 0
24 20 0 21 0 27 0
25 20 0 21 1 27 0
26 20 0 20 0 27 0
27 20 0 20 0 27 1
28 20 0 20 0 26 0
29 20 0 20 0 26 4
30 20 0 20 0 22 0
31 20 0 22 0

Calculation Summary

Metric Value
Average Stock (90 days) 23,11
Average Sales (90 days) 0,13
Average Days stock cover (90 days) 177,77
Sale-to-Stock ratio (90 days) 0,56%
Number of days Stock in FC (90 days) 90
May average stock 20
May average sales 0

💡 Worked Example (Calculations)

  • Average Days stock cover (90 days) = 23,11 ÷ 0,13 = 177,77 days
  • Sale-to-Stock ratio (90 days) = (0,13 ÷ 23,11) × 100 = 0,56%
  • Storage Fee (May) = 20 × R5,00 = R100,00

Even though the average days stock cover of 177,77 (90 days) is greater than 35 days, the sale-to-stock ratio is less than 1% therefore the days count method will need to be applied.

We would now need to consider how many days stock was in the FC over the 90-day period; which in this case is 90.

👉 In this scenario, the Seller will be charged a storage fee as the days count of 90 is greater than 35 days. The Seller will be charged a storage fee of R100.00 excl. VAT for May.


Important Notes

  • Storage fees apply only if stock exceeds 35 days cover in the Fulfilment Centre.
  • The first full month is free. Fees start from the second month onwards if stock exceeds the 35-day threshold.
  • For the remainder of 2025, if stock needs to be returned from the FC back to the seller, this will be done at no charge.