Amazon Seller Fees: This Guide Explains The Costs
“How much does it cost to sell on Amazon and what are Amazon seller fees?” you might wonder if you are an Amazon seller. That’s a tricky question and in this article, we will consider all the factors and fees for selling on Amazon.
Because Amazon seller fees are crucial to your Amazon company research and strategy, asking that question is a fantastic first step. In all likelihood, seller fees on Amazon will account for a significant amount of your revenue.
The more you know about the realistic costs of selling early on in your planning, the more prepared you will be. It goes without saying that the extensive list of Amazon seller charges perplexes many first-time Amazon entrepreneurs–and continues to confuse seasoned sellers. Amazon charges for sellers differ depending on your product and the program you select.
Okay, you want to know how much it will cost you to sell on Amazon, let’s dive deeper into that!
When you register for an Amazon seller account, the first fee you’ll see is when you sign up for it. You’ll be entitled to choose between a Professional and an Individual account, which will make a significant difference in the long run.
On Amazon, there is no such thing as a one-size-fits-all cost. Amazon seller fees vary considerably and are influenced by a number of factors:
1. Your physical location.
2. Your manufacturing costs.
3. The number of units available at the start.
4. Product dimensions, volume, and type.
5. Your marketing budget.
6. If you have a trademark registration.
Users must pay a monthly subscription fee to Amazon, which varies based on the size of the company. The professional seller plan, for example, costs $39.99 a month and is designed for businesses that sell more than 40 goods per month. Let’s take a look at Amazon seller fees:
On the other hand, you won’t have to pay any subscription fees if you’re an individual seller who fulfills less than 40 orders per month. Instead, you’ll be charged $0.99 for every product sold by Amazon. Take into account the fact that if you sell fewer than 40 products each month, the Professional seller plan isn’t really worth it. This is because the (free) Individual seller plan charges $0.99 per item sold, thus you may end up paying more for your subscription plan than for item sales fees.
As mentioned above, the Professional seller account on Amazon seller fee $39.99 per month.
Some benefits come with the fee:
- Eligibility for a chance to win the Buy Box.
- Reports and feeds for order management.
- Feeds, spreadsheets, and reports for inventory management.
- If you’re selling books, music, videos, or DVDs (BMVD), you’ll be able to determine your own shipping prices.
- The ability to execute unique listing elements such as promotions and gift services.
- When products are sold, there is no per-item cost.
- The possibility to provide free gift wrapping on some items.
What Are Amazon Seller Fees That You Should Pay?
FBA Fees
If you sell through Amazon FBA, the Amazon seller fees you pay will vary depending on the sort of purchase you place. FBA allows you to delegate order management to Amazon’s warehouses, so you will be charged a monthly storage fee. Please remember that if your product remains in the FBA warehouse for more than a year, you’ll be responsible for additional fulfillment by Amazon fees.
There are three types of Amazon FBA fees, depending on where the order is in the fulfillment process.
- Order fulfillment fees are calculated based on the size and weight of the goods. Fees for large and heavy products are the highest, while Amazon seller fees for small and light things are lower.
- Monthly storage costs are imposed because Amazon allows you to store your products in their warehouses rather than having to store them yourself.
You can use the FBA fees calculator that allows you to figure out how much you will be paying in fees to use the Fulfillment by Amazon business model for any given product. Using the Amazon seller fees calculator is a no-brainer and can make your life way easier by saving your time.
The good news is that FBM allows Amazon Professional selling plan sellers to select their own shipping costs. There’s also the benefit of not having to worry about storage or warehouse costs. Cool? Okay, let’s take a look at what Amazon seller fees FBM includes.
FBM Fees
Fees for Fulfilled by Merchant (where the seller is in charge of shipping items) are similar to those paid to FBA sellers, but they are not the same. They’re reduced since Amazon acknowledges that the seller bears the expense of delivery, but they’re not totally gone.
Even if the shipment credit is less than the entire shipping cost, FBM sellers employing the Individual selling plan are required to use Amazon’s shipping rates. When you’re in this scenario, it’s critical to price and reprice products carefully and aggressively to avoid being stung by Amazon’s prices. Interested in finding out how to knock out competitors? Find the information on how to do this with the help of Repricer here.
Let’s get back to Amazon seller fees. The next fees which we need to take into account are referral fees.
Referral Fees
You must pay an Amazon seller referral fee ranging from 6% to 20% each time you sell goods on Amazon. The amount of the referral money is determined by the sort of goods you sell on Amazon.
To make things more interesting, most categories have a minimum referral charge.
FBA Returns Fees
As a rule of thumb, customers tend to place an order for one of your products and then return it. Unfortunately, as an Amazon seller, you’ll be responsible for covering the price of any returned items to your warehouse. That might be disappointing, but you should take these Amazon seller fees into consideration as well.
Other Costs
Consider additional Amazon seller fees, as well as any optional programs aimed to help you increase sales when calculating the total cost of selling in Amazon stores. Please read about selling on Amazon: fee schedule here.
Fees For Inventory
In addition to monthly inventory storage fees, you may pay other fees, such as long-term storage fees and removal order fees, if you keep the product in an Amazon fulfillment center — available to sellers who use FBA or Multi-Channel Fulfillment.
On Seller Central Help, you can learn more about inventory-related costs.
Service Charges for Rental Books
Unfortunately, some sellers forget about these Amazon seller fees. If you rent out textbooks, anticipate paying a $5.00 rental book service fee per rental.
Fees for High-Volume Listings
You will be imposed a monthly fee of $0.005 per qualifying listing to cover cataloging expenses when you have a large number of live, non-media listings that have not sold in the last 12 months. For the first 100,000 listings, the charge is usually waived.
Administration Fee for a Refund
Amazon will pay you the reference fee you paid for an item(s), other than the relevant reimbursement charge, less $5,00 or 20 percent of the referral fees if you return an order for which you have already received payment.
Fees on Selling on Amazon vs Ebay
Amazon and eBay are two of the biggest e-commerce platforms in the world. But which one is right for you? Is it cheaper to sell on Amazon or eBay?
If you’re looking to sell your products online, it can be difficult to decide between Amazon or eBay. We know how hard it is to choose between these two giants, so we’ve created this guide that will help you make an informed decision about which platform would work best for your business. Of course, one should consider Amazon seller fees and compare them with eBay ones to make a decision.
The fee for selling on Amazon and eBay is a little different. Selling fees are charged when you sell an item, so if you have more than one copy of the same product, the seller’s account will be charged once for each listing. On eBay, sellers can list up to 20 items in their store at any given time without paying per-item rates ($0.30 per listing). Sellers who exceed this limit pay $0.20 per additional item listed (subject to change).
You might be surprised to learn that there are a lot of benefits to selling on Amazon.
We know that when you sell online, profit margins matter most. On eBay, those margins are slim at best because they charge fees every time someone buys from your store. But with Amazon FBA, those fees disappear and instead get replaced by a single fee per order that comes out to less than half what eBay charges in total! Plus, since all products sold through FBA come with free shipping and handling included, customers will pay more for their items too! If you want the highest profits possible while still maintaining high customer satisfaction rates then look no further than selling on Amazon using SELLERLOGIC’s tools!
Final Thoughts
It’s critical to understand the prices and Amazon seller fees in order to price your inventory effectively. Consider letting SELLERLOGIC’s repricing tool handle your pricing strategy so you can continue winning the Buy Box and remain competitive around the clock. You’ll have more time to focus on other aspects of your business or simply relax. Also, to make your life easier, don’t forget to make use of the FBA fee calculator.
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