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As an Amazon seller, you're probably well aware of the various fees you have to pay in order to sell on the platform. But do you know exactly what those fees are and how they work?
In this article, we'll give you a comprehensive overview of the different types of fees you might encounter as an Amazon seller. We'll also explain how these fees are calculated so that you can be sure you're paying the right amount.
What are Amazon seller fees?
As an Amazon seller, you are responsible for paying a number of fees to Amazon. These fees can be divided into two main categories: listing fees and selling fees.
Listing fees are charged when you create a listing for a product on Amazon. These fees vary depending on the category of the product you are listing. For example, listing a book in the Books category costs $0.99, while listing a television in the Electronics category costs $3.00.
Selling fees are charged when you make a sale on Amazon. The most common selling fee is the referral fee, which is a percentage of the total sale price (including shipping and handling). The referral fee for most products is 15%, but it can be as high as 45% for certain categories of items such as jewelry and coins. Other selling fees include closing fees (charged when a sale is completed) and optional service fees (such as those for using Amazon's fulfillment services).
To get an idea of how these fees might impact your business, let's say you sell a book for $10 on Amazon. The referral fee would be $1.50 (15% of the total sale price), and if you used Amazon's fulfillment services,
Monthly Amazon seller fees
If you're selling products on Amazon, you'll need to pay monthly seller fees. These fees vary depending on the type of product you're selling and the volume of sales you make.
Here's a breakdown of the most common Amazon seller fees:
1. Referral Fee: This is a fee charged for each item you sell on Amazon. The amount you'll pay varies depending on the category of your product but is typically between 8% and 15% of the sale price.
2. Variable Closing Fee: This fee is charged on media items such as books, music, and videos. The amount you'll pay is $1.80 per item sold.
3. Fulfillment by Amazon (FBA) Fee: If you use Amazon's fulfillment services to ship your products, you'll be charged a fulfillment fee. This fee is based on the size and weight of your product and starts at $2.41 per unit sold.
4. Professional Selling Plan Fee: If you join Amazon's professional selling plan, you'll be charged a monthly fee of $39.99. This plan gives you access to additional features and tools to help grow your business on Amazon.
4. Professional Selling Plan Fee: If you join Amazon's professional selling plan, you'll be charged a monthly fee of $39.99. This plan gives you access to additional features and tools to help grow your business on Amazon.
Per-item Amazon seller fees
This fee is based on the category of the item you're selling, and it's generally a percentage of the total sale price. For example, if you sell a book in the Media category, you'll pay a $1.80 per-item fee (15% of the total sale price).
There are also some additional fees that may apply, depending on the circumstances of your sale. For instance, if you sell an item that's considered a hazardous material, you'll have to pay an additional $0.40 per-item fee. And if you use Amazon's Fulfillment by Amazon service to ship your products, you'll also pay FBA fees, which vary depending on the size and weight of the items you're selling.
Overall, Amazon seller fees can vary depending on a number of factors. But knowing exactly what fees you'll be responsible for will help you budget and plan for your business.
Amazon account fees
First off, let's start with the basics: all sellers must pay a $39.99 monthly subscription fee just for having an account. On top of that, there are also fees for listing and selling items, as well as other miscellaneous charges that can apply.
When it comes to listing fees, most items will cost $0.99 per listing, plus a referral fee that ranges from 6% to 20% of the total sale price ( excluding shipping costs and taxes). So, if you're selling a $100 item, your listing fee would be $0.99, and your referral fee would be $6-$20 (depending on the category).
Then, when an item actually sells, you'll also have to pay a closing fee of $1.80 per item. So, if you sell that same $100 item, your total fees would come to $8.79-$22.79
Which account is right for you?
There are two types of Amazon seller accounts: professional and individual. Professional accounts cost $39.99 per month, but come with several additional features, including:
- The ability to list an unlimited number of products
- No referral fees on product sales
- Access to exclusive selling tools and reports
If you’re just starting out or only selling a few items per month, an individual account may be the better option for you. Individual accounts are free, but you’ll pay a $0.99 fee for each item you sell, plus a referral fee (which varies by category).
Amazon referral fees
Referral fees are a percentage of the total sale price, and they vary depending on the category of the item that you're selling.
For example, if you sell a book in the "Books" category, your referral fee will be 15% of the total sale price. But if you sell a piece of jewelry in the "Jewelry" category, your referral fee will be 20% of the total sale price.
You can find a full list of Amazon's referral fees here.
Keep in mind that these are just the referral fees. You'll also have to pay other selling fees, like closing fees and variable closing fees.
Amazon shipping credits
As an Amazon seller, you may be eligible for shipping credits on certain products. Shipping credits are applied to the cost of shipping the product to the customer. To be eligible for a shipping credit, you must:
-Ship the product to the customer within the specified time frame
-Use an approved shipping method
-Have a valid tracking number for the shipment
If you are eligible for a shipping credit, you will see the credit in your account within 2-3 days after the product is shipped. Shipping credits are applied automatically to your next shipping charge.
How to avoid extra Amazon shipping fees
Did you know that Amazon charges extra shipping fees on some items? Here's how to avoid them.
One of the fees is the shipping fee, which can vary depending on the item being shipped.
Some items are exempt from shipping fees, while others may be subject to an additional fee. To avoid paying extra shipping fees, be sure to check the product listing before making a purchase.
You can also avoid shipping fees by opting for free shipping on eligible items. When you select this option, Amazon will cover the cost of shipping for you.
Keep in mind that there are other factors that can affect your shipping costs, such as the weight and dimensions of the item. Be sure to take these into account when calculating your total costs.
By being aware of the various fees associated with selling on Amazon, you can avoid paying more than you have to. Keep this in mind next time you're selling on the site.
Conclusion
Now that you know everything there is to know about Amazon seller fees, you can make an informed decision about whether or not selling on Amazon is right for your business. If you do decide to sell on Amazon, be sure to keep these fees in mind so that you can price your products accordingly and make a profit. Happy selling!
