With 9.5 million current sellers globally, Amazon has become one of the top eCommerceworld's leading digital retailers. New Amazon sellers makea net revenue worth over $26,000 to $810,000 annually. This makes Amazon a gold mine for any newbie sellers. One thing you have to be aware of when you start selling on Amazon is that the fee to operate an Amazon store isn’t cheap. But, the benefits of selling on a global marketplace with more than 2 million traffic a monthoutweigh the cost of selling on the marketplace. Let's dive right into this article to break down the cost of selling on Amazon.
The cost to sell on Amazon for each seller will not be the same because it will be based on their selling plan, product category, and fulfillment strategy,... The options are flexible. When it comes to a subscription plan, sellers can choose between an Individual and professional plan that works best for their goals.
How much does Amazon take from sellers? Amazon’s Professional seller account costs$39.99each month while Amazon’s Individual seller account only costs$0.99/per item sold. Each plan will provide different features for the user.
Amazon’s Professional seller account allows:
This plan is designed for businesses that sell more than 40 units per month, want to advertise products, and sell products in restricted categories,...If you are a small retailer, you can make use of an Individual plan with no monthly subscription fee ( $0.99/ item sold instead). This plan will limit some features such as gift-wrapping, listings uploaded manually, unable to sell various categories such as Jewelry, Shoes, Handbags, Art, and Food,...
The cost of selling on Amazon includes some referral fees. Amazon charges a referral fee for each item sold. The amount depends on the product category. Most referral fees are between 8% and 15%, this percentage may vary depending on which category your products are in. This fee plays a role as a commission for Amazon whenever you sell an item.
For example, when you sell an item in the Amazon Device Accessories category, you have to pay a 45% referral fee percentage. Most categories have a minimum referral fee, which means you have to pay $0.3 if the referral fee is lower than that.
There are some categories for that Amazon does not require a minimum referral fee, they are Collectibles - Entertainment, Collectibles - Sports, Fine Art, Gift Cards, Grocery and Gourmet, Media - Books, DVDs, Music, Software, Video, Video Games and Gaming Accessories, Video Game Consoles.
The referral fee percentage is also adjusted based on the specific price of each category. For example, in the baby product category, the referral fee will be 8% for products with a total sales price of $10.00 or less and 15% for products with a total sales price greater than $10.00.
The fulfillment fee will apply differently for the seller to use FBA or ship the product themself.
There are 3 kinds of FBA Fees,FBA Fulfillment Fees for non-apparel, FBA Fulfillment Fees for apparel, and FBA Fulfillment fees for Small and Light.
If you are using FBA, there is one more fee you have to pay, which is the FBA storage fee. The fees are added because your products are being stored in Amazon fulfillment centers, Amazon charges a storage fee to maintain your inventory monthly or long-term.
Please keep in mind that during Amazon's busiest seasons, these fees may increase in order to incentivize merchants to remove slow-selling items.
FBM vendors do not have their own fees, as do FBA sellers. However, because FBM merchants must store, choose, pack, and ship their own products, their selling costs are frequently greater than those of FBA sellers. They must also manage their own customer service.
For example, if an FBA seller sold a stainless steel cup for $30, she/ he would pay $4.50 in referral fees and $5.14 in FBA costs.
FBM merchants utilizing the Individual selling plan are required to use Amazon's shipping rates, even if the shipping credit is less than the total shipping cost. If this applies to you, it's critical that you price and reprice things carefully and aggressively to avoid being stung by Amazon's prices.
These fees mentioned above are not the total fees sellers have to pay, there are a few other minor fees to consider before listing your products on Amazon. These fees are optional and paidregardless if you are an Amazon FBA or FBM seller.
That’s everything about Amazon fees you need to know. When it comes to Amazon, keep in mind that you have to pay more to stay in the game. Prepare carefully to set your price and start selling on Amazon today. Do not forget to choose products wisely even if you are FBA or FBM sellers.
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