Amazon Fees

22 / Jul

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Are you considering selling on Amazon? How much will it cost? If you’re asking yourself, “how much does it cost to sell on Amazon?” you’re in the right place. This blog will delve into the various fees and expenses associated with selling on the popular e-commerce platform. From the initial costs of setting up your seller account to the ongoing fees for listing and selling products, we will cover all the charges you need to be aware of. Whether you’re starting to sell or you are a seasoned seller, understanding the cost of selling on Amazon is crucial for your business.

How Much Does It Cost To Sell On Amazon: A Complete Guide To Amazon Seller Fees

How much does it cost to sell on amazon you ask? There is no exact amount you can say it cost to sell on amazon because it depends on your choice of plans, subscriptions, verifications, and even shipping. Here are some factors that would affect the amount you pay as a seller.

Selling Plan Subscription

 

Plans Individual Professional
$0.99/ Item sold + additional selling fees s 39.99/ Month $+ additional selling fees
Overview
• You sell fewer than 40 items a month

• You don’t need advanced selling tools or programs

• You’re still deciding what to sell

• You sell more than 40 items a month

• You want access to APIs and more selling reports

• You want to sell with programs like Launchpad or Handmade

• You want to sell products in restricted categories

Features
Add new products to the Amazon catalog Yes Yes
Grow your business with Fulfillment by Amazon Yes Yes
Apply to sell in additional categories Yes
Save time creating listings in bulk Yes
Manage inventory with feeds, spreadsheets, and reports Yes
Qualify for top placement on product detail pages Yes
Increase selling efficiency with API integration Yes
Set your own shipping fees for non-media products Yes
Engage shoppers with on-site advertising tools Yes
Run promotions including free shipping Yes
Add multiple users to your account Yes

 

The Individual Selling

The Individual Selling Plan is a basic plan for sellers on Amazon. It allows individuals to sell their products on the Amazon marketplace for a fee of $0.99 per item sold. This plan is suitable for sellers who are just starting and have a limited number of products to market.

The Professional Selling Plan

The Professional Selling Plan is a more advanced plan for sellers on Amazon. It allows sellers to sell an unlimited number of products on the marketplace for a monthly fee of $39.99. This plan is suitable for sellers with a larger inventory who want to take advantage of extra-fee features, such as the ability to access bulk listing tools and professional selling reports.

Selling services fees how much does amazon charge to sell

Pre-Packaged

This refers to fees that Amazon charges for handling the packaging and shipping of a seller’s product. Amazon will take a percentage of the sale, with a higher percentage for the portion up to $1000 and a lower percentage for the portion above $1000.

Recurring

This refers to fees charged for ongoing services, such as subscription-based products. Amazon will take a percentage of the recurring service fee.

Per-item Fees

This refers to a flat fee charged for each item a seller lists for sale on Amazon. The fee is $0.99 per item.

Referral Fees

Amazon referral fees for non-media products

Clothing and accessories Referral fee percentage Minimum referral fee
Accessories 17% $0.30
Clothing (including, Made in Italy, activewear, and baby apparel) 17% $0.30
Jewelry 20% for a portion of sales price below $250.00, 5% for a portion of sales price over $250.00 $0.30
Shoes, handbags, and sunglasses 15% $0.30
Watches 16% for a portion of sales price below $1,500.00, 3% for a portion of sales price over $1,500.00 $0.30
Collectibles Referral fee percentage Minimum referral fee
Collectible books 15% $0.00
Collectible coins 15% for a portion of sales price below $250, 10% for a portion of sales price between $250 – $1,000, 6% for a portion of sales price over $1,000. $0.30
Entertainment collectibles Restricted product – sellers must sign in to Seller Central for referral fee pricing
Fine art Restricted product – sellers must sign in to Seller Central for referral fee pricing
Sports collectibles 15% for portion of sales price below $100, 10% for portion of sales price between $100 – $1,000, 6% for portion of sales price over $1,000 $0.30
Electronics and accessories Referral fee percentage Minimum referral fee
Amazon device accessories 45% $0.30
Cameras and photos 8% $0.30
Cell phones 8% $0.30
Consumer electronics 8% $0.30
Electronic accessories (including video games and camera) 15% for a portion of sales price below $100.00, 8% for a portion of sales price over $100.00 $0.30
Large appliances 15% for a portion of sales price below $300.00, 8% for a portion of sales price over $300.00 $0.30
Personal computers 6% $0.30
Unlocked cell phones 8% $0.30
Home and office Referral fee percentage Minimum referral fee
3D printed products 12% $0.30
Animals and animal related-products 8% of the sales price of or below $15.00, 15% of the sales price over $15.00 $0.00
Baby products (excluding baby apparel) 8% of the sales price of or below $10.00, 15% of the sales price over $10.00 $0.00
Furniture – indoor 15% for a portion of sales price below $200.00, and 10% for a portion of sales price over $200.00 $0.30
Gift cards 20% $0.00
Grocery and gourmet food or beverages (including alcohol) 8% of the sales price of or below $15.00, 15% of the sales price over $15.00 $0.00
Home supplies 15% $0.30
Kitchen supplies 15% $0.30
Musical instruments 15% $0.30
Office products 15% $0.30
Pet supplies 15% $0.30
Tools and home improvement 15% $0.30
Toys and games 15% $0.30
Outdoor Referral fee percentage Minimum referral fee
Automotive and Powersports (including power tool bases) 12% $0.30
Furniture – outdoor 15% for a portion of sales price below $200.00, and 10% for a portion of sales price over $200.00 $0.30
Outdoor and garden supplies 15% $0.30
Tire and wheel products 10% $0.30
Personal care Referral fee percentage Minimum referral fee
Beauty Health and personal care appliances 8% of the sales price of or below $10.00, 15% of the sales price over $10.00 $0.30
Safety and hygiene Referral fee percentage Minimum referral fee
Industrial and scientific (including food service and sanitation) 12% $0.30
Subscriptions and services Referral fee percentage Minimum referral fee
Amazon subscription boxes Box product category referral fee applies Box product category minimum referral fee may apply
Travel Referral fee percentage Minimum referral fee
Amazon Explore 30% $5.00
Luggage 15% $0.30
Travel accessories 15% $0.30
Everything else 15% $0.30

Minimum Referral Fee

This refers to Amazon’s minimum fee for each item sold through their platform. The minimum referral fee is $0.30 per item.

Referral Fee Percentage

This refers to the percentage of the sale price Amazon charges as a referral fee for each item sold. The percentage varies depending on the item category, with lower percentages for items such as personal computers and higher percentages for extended warranties and service contracts.

Rental Book Service Fees

Rental book service fees are charged sellers may incur when they offer their books for rent on Amazon. These fees vary based on the selling plan a seller has chosen and the book’s location. For example, under the Individual Selling Plan, sellers may be charged a fee ranging from $3.99 to $14.95 for domestic orders and $16.95 to $46.50 for international orders. This fee may also vary based on the weight of the book, with sellers paying an additional $0.50 to $0.99 for each extra pound.

High-volume Listing Fees

High-volume listing fees charged sellers may incur when they list many products on Amazon. These fees are typically charged per-item basis and are designed to help cover the costs of maintaining and updating the seller’s listings. High-volume listing fees may vary based on the type of selling plan a seller has chosen and the specific items being listed.

Refund Administration Fees

Refund administration fees are charges that sellers may incur when they process a refund for a customer. These fees are typically charged as a percentage of the refund amount and are designed to cover the costs associated with processing the refund. Refund administration fees may vary based on the type of selling plan a seller has chosen and the specific details of the refund being processed.

Variable Closing Fees

Variable closing fees charged sellers may incur when they sell an item on Amazon. These fees are typically based on the item’s sale price and are designed to cover the costs of maintaining and updating the seller’s listings. Variable closing fees may vary based on the type of selling plan a seller has chosen and the specific details of the sale.

Individual Selling Plan

The Individual Selling Plan is a selling option designed for sellers looking to sell a limited number of items on Amazon. Under this plan, sellers are charged a fee ranging from $3.99 to $14.95 for domestic orders and $16.95 to $46.50 for international orders. This fee may also vary based on the item’s weight, with sellers paying an additional $0.50 to $0.99 for each additional pound.

Professional Selling Plan

The Professional Selling Plan is a selling option designed for professional sellers looking to sell a large number of items on Amazon. Under this plan, sellers can choose a fee structure best suits their business needs. This allows sellers to tailor their fees based on the specific needs of their business and the volume of items they are selling.

 

Shipping Fees

The cost of shipping your products on Amazon depends on various factors such as your products, seller plan, delivery location, and order fulfillment method. Your selling plan will establish a base for your shipping costs.

Individual Selling Plan

If you have an Individual Selling Plan, you will pay predetermined prices for shipping your products. These prices range from $3.99 to $14.95 for domestic orders and $16.95 to $46.50 for international orders. If your product exceeds the weight limit for the chosen shipment type, you will be charged an additional $0.50 to $0.99 per pound over the weight limit.

Professional Selling Plan

For Professional Selling Plan, you can set your shipping prices. It is essential to carefully research competitors’ prices and fixed rates that won’t discourage customers from placing an order.

It is essential to consider your expected shipping costs when deciding to sell on Amazon.

Fulfillment by Amazon (FBA)

Fulfillment by Amazon (FBA) is a popular solution for businesses selling on Amazon.com that provides inventory management, shipping, and customer service. While it can be a convenient option, FBA does come with various fees, including:

Inventory Storage Fees

This refers to the cost of storing your products in Amazon’s fulfillment centers. These fees vary depending on the season, with higher rates during the holiday season (October to December) and lower rates during the rest of the year (January to September). The fees are calculated depending on the space your products take up in the fulfillment center, with prices ranging from $1.20 to $2.40 per cubic foot during the holiday season and $0.48 to $0.69 per cubic foot during the rest of the year.

Fulfillment Fees

Every marketplace has its fulfillment fees like Walmart store eBay store etc, and that fees refer to the cost of handling and shipping your products to customers. These fees are based on the weight of your products, with prices ranging from $2.41 to $137.32 per unit for weight limits of $0.39 to $0.91.

Per-unit Fees

It refers to additional charges that may apply to certain types of products. For example, there is a $0.40 per unit fee for clothing and a $0.11 per unit fee for products with lithium batteries. These fees may be in addition to the fulfillment and storage fees mentioned above.

Fba Small And Light Fee

 

Size tier

Max dimension

Shipping weight ¹

 

Fulfillment Fee ²

 

FBA Small & Light

small standard

15″ x 12″ x 0.75″ 6 oz or less

6+ to 12 oz

12+ to 16 oz

$2.47

$2.61

$3.15

FBA Small & Light

large standard

18” x 14” x 8” 6 oz or less

6+ to 12 oz

12+ to 16 oz

1+ to 2 lb

2+ to 3 lb

 

$2.66

$2.94

$3.77

$4.42

$5.19

 

 

 

FBA Small and Light fees refer to the fees Amazon charges for sellers using their Fulfillment by Amazon (FBA) service to fulfill orders for small and lightweight items. These fees are broken down into several categories:

Order Handling

This fee covers the cost of Amazon processing and preparing your order for shipping. The amount charged depends on the price of the item, with lower-priced items costing $0.80 and higher-priced items costing $1.00.

Picking and packing

This fee covers the cost of Amazon selecting the item from its inventory and packing it for shipping. The amount charged is a flat fee of $0.75.

  1. Weight handling: This fee covers handling and shipping the item based on weight. Amazon charges $0.11 per ounce, up to 10 ounces per unit.

LTSF

This stands for Long-Term Storage Fee and is charged for items that have remained in Amazon’s fulfillment centers for more than 365 days. The minimum fee is $0.25 per unit.

Picking And Packing Multi-channel Fulfillment (Mcf)

This allows sellers to store their products in Amazon’s fulfillment centers and have Amazon handle the fulfillment process for them. This includes picking, packing, and shipping orders to customers. Depending on these factors, the costs of using MCF range from $5.85 to $143.30 per unit. If your unit exceeds its unit size weight limit, Amazon will add a fee of $0.39 to $0.92 for every pound over the weight limit.

  • Unit order: refers to the number of units being fulfilled in a single order. If you have a higher unit order, you will likely have higher MCF fees due to the additional labor and resources required to fulfill the order.
  • Unit weight: It is the weight of each unit in the order. If you have heavier units, you may have higher MCF fees due to the additional shipping costs associated with heavier items.
  • Shipping speed: refers to the speed at which the order needs to be delivered to the customer. If you offer faster shipping options, such as same-day or next-day delivery, you may have higher MCF fees due to the additional cost of these shipping options.

How To Sell On Amazon

The question, How much does it cost to sell on amazon, can only be fully answered after talking about how to sell on Amazon. There are things you need to know to sell successfully on Amazon.

Research And Optimize Your Product Listing

Before you even think about selling on Amazon, ensure your product is ready. If you’re selling a physical product, you’ll need to find suppliers who can produce what you want at an affordable price and high quality (including packaging). If your product is digital, ensure it works well and has features that customers will appreciate. Also, make sure it doesn’t already exist on Amazon. There’s nothing worse than launching a new product only to find that someone else already sells something similar.

Utilize Amazon’s Fulfilment Services

Selling on Amazon requires more than just selling your product; shipping costs and other logistical issues can make selling online tricky for smaller businesses. Many sellers use Fulfillment by Amazon (FBA) to mitigate this issue. With this service, sellers send their products to an Amazon warehouse, where they are stored until customers order them. At this point, they are packaged and shipped to the customer’s address using shipping labels provided by the seller. This allows sellers to focus on their business without being concerned with the shipping process.

Offer Competitive Pricing

If you have the desire to sell your products on Amazon, then the price will be an essential factor in determining whether or not your products sell well. You need to ensure that your prices are competitive with other similar products to attract customers looking for a bargain. If you don’t offer competitive pricing, it may be difficult for people to find your products when they search on Amazon because they won’t appear in their results list without any bids.

Engage With Customers

Selling on Amazon does not just mean listing products and waiting for customers; it also means engaging with them once they purchase something from you. You can do this by sending follow-up emails and asking them questions about their experience with your product. To create a loyal customer base, make sure that you have excellent customer service and respond quickly to any questions or complaints they may have about their purchase.

Use High-Quality Product Descriptions And Images To Showcase Your Products

The product image is the first thing shoppers see when they search for products. They want to see what they are buying, so make sure your images are clear, crisp, and well-lit. Make sure to include any relevant information about the product in the description, such as size, dimensions, or weight. If you have multiple images of different angles or views of the product, be sure they all link back to a single page with all of them. If your image needs to be clearer or show more detail about your product, buyers may not be interested enough in what you have for sale and look elsewhere for more appealing options.

Utilize Amazon’s Brand Registry To Protect Your Brand

If you want to protect your brand on Amazon, then registering it with the Amazon Brand Registry is a must. This tool allows you to control how your products are displayed on the site and helps keep others from using your name in false advertising or other illegal ways. It also helps ensure that other sellers aren’t using your images illegally. You can register for free by visiting the amazon brand registry and filling out an application form.

Make Sure To Optimize Your Product Titles And Keywords

When someone searches for something on Amazon, they will see a list of results with titles and descriptions that match what they searched for. This is how people find products through search results that match their query in some way. You need to make sure that your title reflects what shoppers are looking for (e.g., if someone searches for “cute dog sweaters”, then use something like “cute dog sweaters” in your title) while also being unique enough so that people don’t get confused when they see multiple listings with similar titles.

Utilize External Marketing And Promotion

Once you get your products listed on Amazon, you must also promote them externally. You will find that many customers need to be aware of how much money they can save if they shop at Amazon instead of other retail sites like eBay or Craigslist. To promote your products, consider using social media platforms like Facebook and Twitter, email marketing, banner ads, local newspapers, and radio spots. This way, more people will learn about your business and buy from you!

Utilize Amazon’s Advertising Options

Amazon’s advertising options can help you gain more exposure for your products. You can choose from various marketing campaigns, such as Sponsored Products, which allows you to bid on keywords that customers search on Amazon, Sponsored Brands, and Product Display Ads. These campaigns are designed to help you reach a wider audience and increase the sales of your products. You can also create display ads on product detail pages and drive customers directly to your listings.

Stay Up-to-date With Amazon’s Policies And Guidelines

To maintain a positive relationship with Amazon and avoid any consequences that could result from violations of their policies and guidelines, you must stay up-to-date on changes made by the company. While there are many resources available for sellers looking for information about changes made by Amazon, some changes are only sometimes announced publicly by Amazon before they go into effect, which means it’s essential to check these resources frequently so you can make necessary changes.

How To Save Money On Amazon Seller Costs

Get A Professional Seller Account

The first step to saving money on Amazon seller costs is to sign up for a professional seller account. This will give you access to additional tools and features that will make managing your inventory easier. You’ll also be able to use FBA storage, which reduces the time you spend shipping products out and back in again.

Choose The Right Product Category

Choosing the right product category for your products can help you in reducing your Amazon seller costs. For example, if you sell electronics and other high-priced items, you must choose categories with enough buyers interested in them so that they’ll be willing to pay higher prices for them. If you sell low-priced items or items that aren’t in demand, then it’s unlikely that anyone will buy them from you at all, even if they’re priced very low!

Estimate The Right Product Size

When it comes to selling on Amazon, product size is one of the most significant factors affecting your profit margin. This is because larger items cost more to ship than smaller ones, thus increasing overall Amazon seller costs significantly. For example, shipping a 10-pound box compared to a 2-pound box will cost twice as much even though they weigh the same weight! Therefore, try to select lightweight products that can quickly be shipped via UPS or FedEx ground rather than FedEx air freight or USPS priority mail services which cost significantly more per pound than ground freight services do.

Sell Your Amazon Products In Bundles

Amazon allows sellers to bundle items together for sale at discounted prices. This can be a great way to increase sales by encouraging customers to buy multiple items at once. For example, if someone wants to buy two pairs of shoes for their child but only has enough credit card points for one pair, they may be persuaded into buying more if they’re bundled with other items like clothes or toys.

Keep Track Of Any Abandoned Inventory

If you’re selling on FBA, you must pay for the storage and shipping of unsold inventory. If you’ve had an item sitting in your warehouse for more than 60 days, you can request a return from Amazon. Also, note that Amazon charges fees for returns even if the customer does not initiate them. So, once again, keeping track of your inventory levels is essential, so you don’t end up with excess unsold products taking up space in your warehouse.

Partner Up With A 3PL

By partnering up with a third-party logistics (3PL) provider, you can save money on shipping costs and perhaps even on storage fees if the 3PL takes care of storing inventory for you. You can also save money by partnering with a fulfillment center that has negotiated discounts with Amazon for using their services. These companies will offer fulfillment services at a lower cost than Amazon FBA and can even help with marketing and customer support!

Invest In Free Packaging Material

If you’re going to be selling on Amazon for more than just a few months, then it may be worth your while to invest in your plastic boxes or even cardboard boxes that you’ll repeatedly use for shipping items directly from your warehouse to customers’ homes. This will help you save some money in the long run because it means you won’t have to pay for any additional packing material each time you ship something out to an individual buyer.

Advantages Of Selling On Amazon

Ship Your Orders, Stress-free

With FBA, you can ship your orders to Amazon fulfillment centers, where they’ll be stored until they’re delivered to customers. This not only saves you time and money on shipping and packaging costs but also means that you’re not responsible for any lost or damaged inventory, along with all the other headaches that come with fulfilling orders yourself.

Advertising Options

Amazon has an advertising platform that is very comprehensive and easy to use. You can advertise your products on the Amazon search results page, which is the most valuable real estate in the world. You can also advertise your products on other websites and apps through their Amazon Marketing Services (AMS) program. The AMS program gives you access to its network of over one million sites and apps, so you can reach consumers wherever they are in the world. The more specific the search term you choose, the more likely your product will be shown to shoppers looking for something exactly like yours.

Secure Payments

Sellers with a Professional Seller account receive payment for their sales through Amazon Pay. With this payment method, you don’t have to worry about collecting money from buyers or paying vendors. You can get paid faster because Amazon approves most orders within two days. Amazon processes all payments through its system and guarantees that the payment will be accepted. This allows you to focus on running your business rather than worrying about chargebacks or other financial issues.

Marketplace Credibility

Amazon is also a well-known company that has gained the trust of its customers over the years. Trust is essential in online shopping as you may buy something you can’t physically see or touch before buying it. Amazon ensures that its products are genuine and authentic so that buyers don’t have doubts about purchasing from them.

Large Customer Base

Amazon has a vast customer base. The company’s website attracts more than 300 million customers every year from all over the world. This is a vast number, and it’s growing rapidly every year. You can benefit from this large customer base to grow your business as a seller. You don’t need to spend money on advertising because Amazon does it for you. Whether you’re selling in Europe or Asia, there’s an Amazon marketplace. Customers can shop on Amazon confidently because they know they’re buying from a trusted source, and that’s good news for you as a seller.

Customer Reviews

Customers love Amazon because they can rate their products and leave reviews about them. These customer ratings make Amazon so popular among online shoppers because they provide valuable feedback about the products they purchase. Customers trust these reviews because they know that other shoppers have tried the products and given them honest feedback about their experiences with them.

Payment Processing

Another advantage of selling on Amazon is that it offers payment processing services for vendors and sellers alike. If you don’t want to accept credit card payments for your products, you can use Amazon’s payment processing service instead. It works like this: If someone buys one of your products using their credit card, Amazon will process the payment for you and send you the money minus their fee.

Disadvantages Of Selling On Amazon

Hefty Fees

One of the significant disadvantages of selling on Amazon is the fees associated with it. Amazon charges a referral fee based on the category of the product being sold, as well as a fulfillment fee for using their fulfillment services. These fees can add up, especially for sellers with a large sales volume.

Huge Competition

Amazon is a massive marketplace with millions of sellers, which means there is a lot of competition. It can be difficult for new sellers to stand out and gain visibility in such a crowded marketplace.

Brand Control

When selling on Amazon, sellers need to have complete control over their brand and how it is presented to customers. Amazon has strict product listing guidelines, and sellers must follow them to sell on the platform.

Amazon’s Policies

Amazon has a lot of policies and regulations in place that sellers must follow. These policies can be complex and hard to understand, which can make it difficult for sellers to navigate the platform.

Lack Of Customer Information

Amazon does not share customer information with sellers, which can make it difficult for sellers to follow up with customers or create a loyal customer base. This can be a significant disadvantage for sellers looking to build a strong relationship with their customers.

Conclusion

If you’re considering selling on Amazon, you might wonder, “how much does it cost to sell on Amazon?” The short answer is that it can depend on the account type you are using and the specific fees associated with your product. If you have a Professional seller account, you’ll pay a monthly subscription fee and fees for each product you sell. If you are using the Individual seller account, you’ll pay a lower subscription fee but a higher per-item price. Additionally, there may be other costs to consider, such as the cost of product sourcing and shipping. Overall, it’s essential to carefully review all of the fees associated with selling on Amazon and factor them into your pricing strategy.