Amazon Fees . The fees that you will be charged to sell on Amazon will depend on the selling program that you opt for and the category of the product that you sell. Amazon charges all retailers a “referral” fee, and a “variable closing” fee, taken from your sale price. Be aware that the sale price they use includes the cost of shipping and gift wrapping. Below are the fees that you can expect to pay to sell your products on Amazon.com.
All sellers are charged a percentage of every sale, although listing your product is free:
|Seller Fees||Individual Seller||Pro Merchant|
|Flat Fee||$0.99 per item in addition to the % fee||$39.99 per month but no $0.99 fee per item|
|Sales Percentage Fee||Variable, depending on product category||Variable, depend on product category|
If you have a large business and you sell 40 or more products every month then it will pay you to be enrolled in the Pro Merchant program.
The referral fee is the figure that Amazon will charge you per sale and is determined by the company’s CPA – Cost per Acquisition model and their inventory model. These are the fees by category:
|Category||Referral Fee %||Minimum Referral Fee %|
|Amazon Kindle, Baby Products (Not Baby clothing), Beauty, Books, Clothing & Accessories, Health & Personal Care, Home & Garden, Kitchen, Luggage & Travel, Music, Musical Instruments, Office Products, Outdoors, Shoes, Handbags & Sunglasses, Software & Computer/ Video, games, Toys & Games, Videos & DVD, Video Games, Watches, Other||15%||$1 Not applicable for Videos, DVDs, Kindle Books, video game,s or software $2 for watches|
|Automotive & Power ports, Industrial & Scientific, Tools & Home Improvement||12% Not for wheels or tires||$1|
|Camera & Photo, Consumer Electronics, Unlocked Cell Phones, Video game Consoles||8%||$1 Not applicable to video game consoles|
|Collectible Coins, Electronic Accessories, Entertainment Collectibles, Major Appliances, Sports Collectibles||Variable||$1|
|Accessories for Kindle||25%||Not Applicable|
Amazon will charge a buyer the cost of the product, the shipping fees, and any other fees, such as for gift wrap, that are applicable to the sale. The seller is given a percentage of this amount, less any fees for referral, and seller account fees.
Amazon FBA and Selling on Amazon
You can use Amazon FBA to sell on Amazon. You will send your merchandise to Amazon and then sell them on your listing page. Under Fulfillment by Amazon, all your goods are sorted and packaged by Amazon and then shipped.
If you choose to use FBA, you can expect to pay between 8 and 15% of the sale price per item as well as your FBA fees, while Selling on Amazon sellers will be charged a referral fee. You will also be charged storage fees if you use FBA.
|Fees||Sell on Amazon FBA||Sell on Amazon|
|CPA fees||8-15% – depends on your product category||8-15 %, depending on product category|
|Handling the Order||Media items – $0 Non-media items – $1 Clothing – $1 + weight handling*|
|Pick and Pack||Media – $1.02 Non-media – $1.02 Clothing – $1.42 + weight handling*|
|Storage Feed||8-15 %, depending on the product category|
|October to December $0.68 per cubic foot for standard, $0.53 per cubic foot for oversized|
|Inventory Placement Service Fee||Standard – up to 2 lb. – $0.30 – $0.40 Between 2 lb. and 5 lb. – $0.30 – $0.40 plus $0.10 per pound Oversized – 5 lb. and over – $1.30 plus $0.50 per pound over 5 lb.|
* Based on the outbound shipping weight and fees will vary depending on the size of the product
More details can be found on the relevant pages on Amazon.com but this should give you an idea of the fees you can expect to pay. With all of this information in hand, you can now work out if you think using Amazon or Amazon FBA is worth it in your book.
This concludes this whole course. We have covered everything you need to do to start selling with Amazon in a step-by-step manner. You know how to set up your Seller Central account, pick the right product, find the right supplier, list your product on Amazon, send your inventory to FBA, and promote your brand.
It’s a lot of information to digest at once, so take it easy. You might observe some slight changes in the real experience that can’t be helped. But there’s no need to worry; you can always contact Amazon help centers and they’ll guide you through the process.
Thank you for reading this course. Now go on and start your Amazon business today!