Amazon Seller Fees: You Need to Know About
More and more companies are turning to Amazon to sell. That is a tough question. Amazon seller fees vary greatly, depending on the cost, category, and weight of the product, as well as the seller’s shipping solution, seller plan, and fulfilment process. Simply put, there is no way to give an exact figure for the cost of selling on Amazon. However, you can use this guide (and table) to see the different Amazon seller fees.
Cost to Sell on Amazon:
Amazon seller fees depend on more than 10 factors, including the seller’s account type. Both account types pay a variable closing fee of $1.80 for every item sold, plus a referral fee that ranges from 6% to 96% for every item sold. Additional Amazon seller fees depend on the seller’s order fulfilment and shipping settings.
Amazon Seller Fees Guide
If you decide to sell on Amazon, you’ll find that Amazon seller fees vary slightly, including:
Selling Plan Subscriptions
When you start selling on Amazon, you will have two options for selling plans
Amazon Selling Plans:
Individual Selling Plan: This plan is best suited for those who sell at most 40 items per month. It’s also free. Unlike the Professional Selling Plan, if you choose the Individual Selling Plan, you’ll pay a $0.99 selling fee for every item sold.
Professional Selling Plan:
This plan is best for businesses that sell more than 40 items per month and want to sell to users outside the United States. With the Professional Selling Plan, you can customize shipping rates, list items in bulk, and more. It costs $39.99 per month. While you can start with the Individual Selling Plan, the Professional Selling Plan is a must if you want to generate significant sales and revenue from Amazon. Not only does it make it easier to get started on the platform, but it also qualifies you for the Buy Box on your product page.
Service Selling Fees:
For businesses in the home services sector, Amazon also offers a platform to attract and acquire new customers. Amazon’s service selling program allows vetted and verified companies to develop and find new customers without any upfront costs. The two fees associated with selling services on Amazon are:
Pre-Packaged Services:
Pre-packaged services, such as TV installation or treadmill assembly, allow users to purchase your services at an estimated rate. For these services, Amazon takes a 20% cut of the cost up to $1,000 and a 15% cut of the price over $1,000.
Recurring services:
Recurring services, such as lawn care or house cleaning, are purchased on a subscription basis by users who sign up for recurring appointments. Amazon charges a 15% recurring fee. Note that selling services on Amazon does not include:
- Subscription fees
- Subscription fees
- Selling fees
- Advertising fees
You can also choose to sell. If you receive a request for a job that does not fit your schedule, you can skip the request. While other providers will give you the option to accept the job, this feature lets you focus on selling the most valuable items for your business.
Per-Item Fees:
The Amazon seller fee is only available to users of the Individual Selling Plan. For every item sold, Individual Selling Plan users pay Amazon a $0.99 fee. If you are an enthusiastic Professional Selling Plan partner, Amazon waives this cost.
Referral Fees:
Amazon charges a referral fee to Individual Selling Plan and Professional Selling Plan users. This fee is based on Amazon bringing or referring users to your business and products through your website and brand reputation. For every product sold, your company will be charged a referral fee. Your referral fee is based on a percentage of your product’s referral fee, and if there is a minimum referral fee, Amazon will charge a higher amount to your account. Here is a quick breakdown of Amazon’s referral fee percentages and minimum referral fees:
Minimum Referral Fee:
The minimum referral fee per item is $0.30. Some listing categories, such as books, music, and video games, have no minimum referral fee, which means your referral fee will always come from a percentage of your referral fee.
Referral fee percentage:
Your referral fee percentage depends on the listing category. Rates range from 6% (for personal computers) to 96%. Use Amazon’s referral fee percentage chart to see how much your company can afford to pay in referral fees.
Booking Rental Fees:
Companies that offer rentals, such as college textbooks, pay a $5.00 fee for every textbook they sell. Keep this Amazon seller fee in mind when pricing your textbooks and setting shipping rates, as this fee can increase over time.
High-Volume Listing Fees:
Amazon has a large product catalogue, which is why it charges a high-volume listing fee of $0.005 per ASIN each month. However, not all sellers receive a high-volume listing fee. You must meet several requirements in order to be charged. These requirements, which focus on your ASIN, include:
- Your ASIN was created at least 12 months ago
- Your ASIN has an active offer that month
- Your ASIN is in a non-media category, such as books, DVDs, music, game consoles, and video games.
Your first 100,000 ASINs that qualify for the high-volume listing fee will not be charged. Any ASINs that qualify beyond your first 100,000 will be charged a fee. You can check how many ASINs qualify for the high-volume listing fee in Seller Central by following these steps:
- Log in to your Seller Central account
- Click on the Inventory tab
- Select the High Volume Listings report
Conclusion:
Here is the end of the complete guide to Amazon seller fees. Fees can seem daunting at first, but don’t let that stop you from selling on Amazon. Once you understand the fees you are paying, you can start implementing strategies to effectively manage these fees and ensure they don’t cut into your profits.