Amazon Seller Fees Explained
There is a lot of numbers to consider when thinking about Amazon Seller fees. With over 400 different fees you could be charged by Amazon when selling products, it’s no wonder sellers are often confused and frustrated when trying to calculate their Amazon business finances.
Choosing a Selling Plan
The first thing to consider is which selling plan to choose: Individual or Professional. Here is a table Amazon uses to illustrate the two plans’ features:
The biggest thing to think about when making your decision is whether or not you think you’ll be able to make more than 40 sales each month. If the answer is yes, then you’ll want to choose the Professional plan which is $39.99 per month. Since the Individual plan charges $0.99 per sale made on top of the referral fees, if you can make more than 40 sales in a month, you’ll save money on the flat sale fee.
Professional plan sellers are still subject to variable closing fees and referral fees which range from 6% to 25% with an average of 13%.
Amazon Seller Fees Per Sale
Each sale you make is subject to 3 separate fees based on the category the product is listed in and the price the product is sold at.
There are two factors that determine the referral fee:
Price item is sold at
As noted above, the average referral fee is around 13%. To see the full list of per category referral fees, click here.
There is also a minimum referral fee that will be applied to certain categories, but if the category your product is in has the minimum referral fee you will pay the greater of the two fees, not both.
Variable Closing Fees – For Media Categories
If you sell products Media categories (Books, DVD, Music, Software & Computer/Video Games, Video, Video Game Consoles, and Video Game Accessories), you will also be subject to a closing fee of $1.80 per item sold in those categories.
Amazon Seller Fees for FBA
If you use Fulfillment by Amazon, you will have to pay Amazon fees for that service. FBA is a great option for most sellers who want to avoid the hassle of fulfilling their own orders and want their products to be Prime-eligible. Amazon takes care of all of the packaging and shipping once a sale is made, as well as handling any customer service issues that may arise.
Fees that are applicable to using FBA include:
Charges for inventory storage/maintenance
Long-term storage fees (inventory stored for more than 365 days in an FBA warehouse)
Pick and Pack fees for when an employee prepares an item for shipment to a customer
Weight handling charged per pound for the entire package shipped
Shipping charges fee which varies depending on method of shipping/other services
Per-fulfillment order fee encompasses various fees accrued to process an order
Returns processing fees are charged in the event an item is returned by the customer
Non-compliance fees are charged when items are not properly packaged, labeled or meet other conditions
Prep service fees are charged for items sellers want Amazon to handle any special packaging/prep requirements rather than doing it themselves
You can use this FBA calculator to determine your FBA fees and revenue.
Keeping Track of All the Amazon Seller Fees
If your head is spinning from all those numbers right now, I don’t blame you. It’s a lot to consider and keep track of. And not tracking it closely and being able to calculate whether or not your business is turning a profit could lead to disaster.
Amazon Sellers find that having some kind of automated reporting for the financial information to be immensely helpful. Platforms with automated financial reporting like Sellozo help Amazon Sellers easily see how their account is performing financially by directly importing the information from Seller Central. Trying to figure all the Amazon Seller fees takes a ridiculous amount of time, but with Financial Reporting on the Sellozo platform, sellers can see a breakdown of their costs, fees, revenue, and True Profit.
Sellozo’s Financial Reports are included FREE with any paid subscription. Click here to sign up!
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