The four main Amazon fees for sellers are related to sales, seller accounts shipping costs, as well as Amazon FBA charges.
Sales-related charges vary from 6% or 45% to the item’s price of sale The average seller pays around 15 percent. The fees for accounts range from 0 to $39.99 each month. Additionally, you’ll need to ship and fulfill your orders. These vary greatly in cost, based on the product and the method of fulfillment.
We’ll go over each kind of Amazon seller fee below. We’ll also help you calculate the costs you’ll have to pay for each item you sell through Amazon’s eCommerce platform.
1. Amazon Sale-Related Fees
There are three kinds of Amazon seller fees payable in the event that you sell your products on Amazon such as referral fees and minimum referral fees or closing charges.
The fees are based on the category of your item and price of sale and therefore getting a precise estimate of the exact costs will require some digging, but we’ll provide you with the best tools to use.
Referral Fees
The majority of Amazon sellers (on Professional and Individual accounts alike) pay the referral fee for each product that is sold via the market. Two factors that determine your fee are the product’s category and price.
Referral fees are determined in percentages of your item’s value. The majority of sellers pay 15% referral fees on average. The fees vary between 6% and 45 percent, depending on the categories your products belong to.
Minimum Referral Fees
Amazon sets a Minimum Referral Fee for specific categories. If the category in which you offer your products has the minimum fee for referrals that you pay, you’ll be charged the higher one of these costs (not all of them!) depending on the product’s selling antalya escortlar price.
Closing Fees
Amazon has an additional cost for products that are sold under its categories of media. This is called the Closing Fee which is an all-inclusive $1.80 cost that 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
2. Amazon Seller Account Fees
Amazon provides two kinds of Amazon seller accounts. The features and fees of each account are designed toward the particular selling requirements of small-volume sellers and large-volume business sellers.
In addition to the different charges, each account has features to meet the needs of large or small sellers. particular requirements.
Individual Seller Accounts
For occasional and low-volume sellers Amazon individual Seller accounts need minimal setup and come with no monthly charges. However, they have some extra limitations compared to Professional Seller accounts.
- You can have up to 40 sales per month, not the total number of product listings, but the actual products that are sold
- It is necessary to manually create listings on your Amazon Seller Central dashboard–bulk uploads aren’t available.
- Can be restricted to specific categories
- Do not provide gift wrap
Professional Seller Accounts
Amazon Professional Seller accounts are created to meet business requirements and include a range of selling options for $39.99 per month.
- Features unlimited product listings
- Provides uploads of bulk products
- It is connected to online platforms and order management systems.
- Does inventory management as well as FBA inventory management
- Offer gift wrap
Which Account Is Best for You?
If you’re already an eCommerce vendor transitioning to Amazon Professional Seller Account is the preferred option. The Personal Seller accounts are small in comparison and need more direct supervision.
If you’re just getting started selling your products on Amazon it is possible to start your journey with Amazon with no upfront cost with an individual seller account.
The cost is zero to create an account as an Individual Seller and then list products. the fees are only charged for products that are sold. It’s not even “charged” Amazon gets a cut of your payment, which means you pay nothing out of your pocket.
3. Shipping Credits & Costs
These charges aren’t costs for sellers however, they could cost you money if not paying attention. If you send Amazon purchases yourself Amazon will give you shipping credits for each sale to help cover shipping expenses, but there’s a caveat.
The amount Amazon gives sellers is usually small compared to the shipping costs you pay for shipping orders.
Based on the product you offer and the amount and weight of each parcel you ship and the weight of each package, you could end up having to pay more for shipping orders than you get from Amazon’s credit for shipping.
To ensure that you do not lose all your earnings to shipping costs You must be aware of the amount you’ll receive from Amazon for every product you sell.
To find out if credits can pay for shipping Utilize the chart below to determine what Amazon will pay you for shipping your goods. After that, you can compare these numbers with the actual cost of shipping.
If you’re selling small and light items, you could succeed. If your items are shipped in heavy and/or large boxes, you could find you’ll lose each sale.
One way to cut down the cost of shipping and improve your Amazon revenue is by using shipping software. With it, you can quickly analyze prices and streamline your shipping processes.
4. Fulfillment by Amazon (FBA) Fees
Professional and Individual sellers can utilize Amazon FBA to store the shelves, package, and then deliver Amazon products. Amazon charges fees for this, however many Amazon sellers have found FBA fees to be reasonable.
FBA costs are affordable for some products. Additionally, it eases the day-to-day order packaging and shipping chores off your shoulders and allows your products to be Prime-eligible.
In total, 91 percent of Amazon sellers make use of FBA to fill the majority or even all of their orders. So it’s worth a look. The issue is that FBA charges vary according to the size of the product and its weight.
As with all aspects of selling products on Amazon, it is essential to be aware of the total cost you’ll have to pay for storage and shipping your products using FBA before deciding to join the FBA program.
FBA Fees by Service
Amazon’s FBA charges are fairly simple. The selection, packing, and shipping charges are all bundled into one cost and the second cost is for the storage of inventory. FBA fees cover boxes and packaging, and can even handle returns if your customers send items back to Amazon.
The two kinds of FBA fees you’ll find are:
- Pick, pack, and weight handling fees: This is your entire pack-through-shipment fee, including your shipping cost.
- Monthly storage charges The cost of storing your items at Amazon’s Warehouse.
Product Size Determines FBA Fees
FBA charges are based on the size of the item that you’re storing or shipping. The size of the product includes all packaging to protect your product like blister packs, shoe boxes, and retail packaging. Amazon categorizes FBA merchandise into two sizes.
- Standard-sized goods: Products of standard sizes that are fully packed should weigh less than 20 pounds and cannot exceed 18”x14”x8”.
- Products with oversized dimensions: Any item with a weight of more than 20 pounds and/or a dimension greater than 18”x14”x8” in size is classified as oversized.
FBA Inventory Storage Fees
FBA also charges storage charges that are astronomically higher from October to December festive season. These storage costs are added to referral fees, account fees, and fulfillment charges.
If you’re thinking about FBA it is important to be aware of additional charges which could appear on your invoice.
This includes long-term storage costs and re-labeling charges for products that are not properly prepared. If you’re not staying on top of these issues, they’ll quickly take away your earnings.
