Amazon is a company that operates online retail and cloud computing platforms. The company has over 100 million active users worldwide and it’s the most visited retailer in the world. Needless to say, meeting the demands of all of these clients and customers requires a large work force of warehouse workers. A topic of interest, then, is to know how Amazon’s warehouse workers are paid, and how much they are paid. We will start off by looking at Amazon’s compensation style.
How Warehouse Workers are Paid at Amazon
Warehouse workers at Amazon are called Fulfillment Associates. The commission rates are set by their fulfillment centers, and most Amazon employees find it hard to know what their pay is based on. This is because the packages that come in and leave the warehouse are divided into shipments with different weights, so there isn’t a specific cost-per-unit for each item. The payment rates are based on the number of items an associate sells, how much money they make, their qualifications, and how many hours a week they work.
For Amazon fulfillment associates, the commission rate will be around 1-3% depending on their qualifications and experience level. In other words, Amazon operates by a part fixed, part commission-based salary, where all warehouse workers have a base salary from which they can earn more, based on how well they perform their job. This compensation system is quite normal within the warehouse and storage industry.
How Warehouse and Storage Workers are Paid Outside Amazon
Inside Self-Storage, which has provided effective solutions for facility owners and managers for over 30 years, make the point that the compensation style should be based on a number of different factors. A split between hourly wage and bonuses works for some, whereas others prefer only hourly wage.
An interesting example of providing for this need is found in Norway, where the storage company Flexistore Minilager holds a large part of the country’s market share. To motivate both the achievers and the steady workers, they have made it optional for storage employees to choose either a pure hourly wage-system of compensation, or one that is based on an hourly rate plus bonuses.
What Are the Most Common Amazon Commissions?
Most Amazon fulfillment associates make an average of $16 an hour as of 2021, but the salary ranges from $12-$22. Furthermore, the average order value for a fulfillment center worker in the United States is $1,000. This means, based on the different factors that count into a worker’s pay, that most of them make around $24,000 a year as fulfillment associates. That sum is enough to make most workers live comfortably.