Charges for sale-related items and seller account fees shipping costs and Amazon FBA fees are the four major Amazon seller fees.
The average seller pays around 15 percent of the item’s selling price for sale-related costs that vary between 6% and 45 percent. The monthly costs for accounts vary from $0 to $39.99.
Additionally, you’ll need to fulfill and deliver your orders and this can be costly according to the product you offer and the fulfillment method you employ. Seller account fees, sale-related fees, shipping costs, along with Amazon FBA fees are the four most significant Amazon fees charged by sellers.
Amazon Sale-Related Fees
When selling items on Amazon There are three types of Amazon seller fees that you should consider the referral fee as well as minimum referral fees and closing costs.
Referral Fees
Every product sold on Amazon earns a referral charge which is payable to every Amazon seller (including Professional and Individual accounts). The category of your product and the selling price are two main factors that determine the amount you pay for referrals.
Referral fees are calculated as an amount of the selling cost of your products. The typical referral fee paid by the majority of merchants is 15 percent. However, based on the categories in that your products are included, fees could range between 6% and 45 percent.
Minimum Referral Fees
Certain Amazon categories require minimum referral fees. If you’re selling in an area that has minimum fees for referrals then you’ll be charged the greater fee of both (not the two!) depending on the price of your product.
Closing Fees
Amazon has an additional cost for items sold in its categories of media. This is called the Closing Fee which is a one-time $1.80 cost and is added to Referral Fees of items that fall in any category of media, which includes:
- Books
- DVD
- Music
- Computer/video games and software
- Video
- Video game consoles
Amazon Seller Account Fees
Amazon provides two kinds of Amazon Seller Accounts. The costs, as well as features offered by each, are tailored to the particular selling requirements. Along with different fees. Each type of account comes with features that meet small or large sellers’ specific requirements. of individuals with low-volume and large-volume business sellers.
Which Account Is Best for You?
If you’re switching to Amazon from another online marketplace then you should consider the Professional Seller account would be your most suitable alternative. The individual Seller account is much smaller and requires direct supervision.
If you’re just beginning to get started selling items on Amazon However the Individual Seller account will assist you in starting without any upfront costs.
The process of registering for an account as an Individual Seller is completely free and you’ll only pay charges if your items sell. It’s not like you’re “charged”–Amazon subtracts its fee from the amount you pay, meaning that you won’t be required to pay anything out of your pocket.
Shipping Credits & Costs
These charges aren’t costs for sellers however, they can cost you money if not paying attention. If you send Amazon orders on your own, Amazon pays you a shipping credit with each sale to pay for shipping expenses, but there’s a caveat.
The amount Amazon gives sellers is usually small in comparison to the actual shipping costs you pay to ship your orders.
Based on the product you offer and the dimensions and weight of every package you send you may end up having to pay more for shipping orders than you receive from Amazon’s credit for shipping.
To make sure you do not lose all the profits you earn from shipping it is important to be aware of the amount you’ll receive from Amazon for every product you sell.
Fulfillment by Amazon (FBA) Fees
FBA can store, pack as well as distribute Amazon products to both private as well as professional retailers. Naturally, Amazon charges fees for this, but for certain products that are not listed, the majority of Amazon sellers find FBA prices to be extremely affordable.
This also frees you from the burden of daily order packing and shipping obligations and makes your products Prime-compliant.
FBA is utilized by the majority of Amazon sellers to process part and all of their purchases therefore it’s something to think about. FBA charges, on contrary, are contingent on the weight and size of the item.
Before signing to sign up for FBA be sure to know the fees you’ll be charged for storage and shipping your items, as with any other aspect of selling products on Amazon.
FBA Fees by Service
Amazon’s FBA costs are quite a simple One price covers choices, packaging, and shipping. The other handles the inventory. FBA fees include everything from boxes to packaging, as well as returns handling if your customers want to return items to Amazon.
There are two kinds of FBA costs:
- Pick the weight, package, and handling charges These are the total price of your order from beginning to end, including shipping.
- The cost of storing your products in Amazon’s warehouses is based on a monthly.
Click here to use the Best Amazon FBA Calculator.
Product Size Determines FBA Fees
The dimensions of the product that you’re storing and moving will determine the size of your FBA costs. The packaging you use for your products such as blister packs, shoe boxes, or retail packaging is included in the dimensions. FBA products are separated into two sizes according to Amazon.
- Standard-sized products must weigh no more than 20 pounds, and be not more than 18”x14”x8” completely packed.
- Items that are too large over-sized products are those that weigh greater than 20 pounds or measure over 18”x14”x8”.
FBA Inventory Storage Fees
Amazon FBA also has to pay storage charges, which are skyrocketing during the Christmas season, between October and December. Apart from referral fees, account fees, and fulfillment charges, these storage costs are imposed.
Bottom Line
Even in the off-season Amazon generates more than one-quarter of US eCommerce purchases (excluding automotive parts) and has more than 2.45 billion visits per month.
The company’s huge reach and the fact that it is a customer-centric business make it an extremely lucrative market to use, however, the benefits come with high costs due to a myriad of complex aspects.
When you offer your products on Amazon the distinction between loss and profit could be nil, which is why it is essential to know the costs and fees. You’ll be able to identify profitable products and thrive in this huge, ever-growing business when you keep this knowledge in your mind.
Recommended Guide: Tips on Creating a Successful Amazon PPC Campaign.
