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Have you ever dreamed of becoming a merchant who opens a door to a secret marketplace, sell, sell, and sell that one day he becomes, rich, successful, owner of unimaginably great fortune? Well, Amazon is the practical form of your dream. But let me interrupt your daydreaming a bit. With Amazon, it doesn’t come as easy as just opening the door to some marketplace and starting selling. It is a full-fledged investment.
That means, listing, cataloging, imaging, product sourcing, and then availing Amazon account management services, and Amazon PPC management services cost you later. First, you have to keep your wallet full and mind prepared to pay multiple fees attached to Amazon selling. So if you are asking if there are any selling fees on Amazon sort of question. Let’s dive deep into finding out all the possible fees related to selling on Amazon before you set up your account.
Top 5 Ways In Which Sellers Pay Selling Fees On Amazon:
If you sum up all the costs that you need to set up and then run your Amazon business, you will have a pretty transparent idea that it’s neither free nor cheap. But if you manage to get successful on it, you are not gonna regret it. So let’s discover why and when you have to pay Amazon.
1. Subscription Fee Per Month:
First of all, when you sign up for a seller account, that is when you face the first fee. You will be provided two options: Individual Account and Professional Account. How and What you pay will depend upon this decision.
If you choose an individual account, there is no subscription fee but you will have to pay 99 cents on each sale. But some limitations come with signing up for an individual account.
- You don’t have control over shipping costs as it is set by Amazon.
- You cannot sell in categories like Shoes, Art, Jewelry, Handbags, Food, Luggage, and much more.
- You cannot offer gift wrapping.
- You cannot upload listings in bulk.
If you choose a professional account, you have to pay $39.99 per month but there would be no cost on sale per item. However, with $39.99 comes multiple privileges an individual account doesn’t offer.
- You will be provided with inventory management and order management with reports, feeds, and spreadsheets
- You can use Amazon Marketplace Web Services and can set your shipping rate if you are dealing in BMVD.
- You will be eligible to win the BuyBox and can run special listing features, promotions, and gift services.
- You will be able to calculate US sales and can add taxes to your orders.
2. Sale-Driven Fees:
Then comes the fee that is associated with What and How you are selling. And it is further divided into three subcategories.
- Referral Fees:
It can be more specifically called Amazon commission per sale. It is mostly 15% or less. But it varies depending upon the category of the item you are selling.
- Variable Closing Fees:
This fee comes with selling in BMVD (Books, Music, Videos, And DVDs). That means, if you are selling in the Media category, you will have to pay an extra $1.80 for a variable closing fee.
- Refund Administration Fee:
This fee comes when you sell an item and receive money for it but the shopper after receiving it returns it. In such a case, you will be given the money and referral fee back but you would have to pay a refund administration fee of $5.00. Or you can pay 20% of the applicable referrable fee whatever suits you.
3. Fulfillment By Amazon:
Depending upon the fulfillment process of the order, this is the third fee you will have to pay which is divided into further 2 types.
- Product Size And Weight:
This fee depends upon the size and weight of the product. If the product is lighter, the fee will be lower. If the product is heavier, the fee will be higher. For an item of
- 10 ounces or lighter_$2.41
- 151 pounds or lighter_$75.78
- And Above 90 pounds_$0.79 per pound
- Storage Fees Per Month:
By adapting FBA, you will be using Amazon warehouses to store your items. Amazon will charge you for this.
- $0.69 per cubic foot_January to September
- $2.40 per cubic foot_October to December
- $0.48 and $1.20 per cubic foot_Oversize item
Note: If you cannot sell your product and they are kept stored in Amazon’s warehouses for more than 12 months, you will be charged for it. This fee is calculated twice a year.
4. Fulfillment By Merchant:
If you are choosing the FBM plan, you will have to pay fees to Amazon but just less than FBA sellers.
Individual FBM Sellers:
Amazon will set the shipping rate if you are an individual seller. That means you won’t have control over shipping costs. It doesn’t matter if the shipping credit is less than the shipping cost. So it’s better to do pricing and repricing consciously and mindfully or you will get a serious loss from Amazo rates.
Professional FBM Sellers:
FBM sellers using pro plans are privileged in such matters as you can set your shipping rates. But if you deal in BMVD, Amazon will give you shipping credit equivalent to the shipping rate. That further keeps varying with the shipping method you choose.
5. Other Minor Fees:
There are some other fees you better call situational fees as they come with different situations.
- If your product listing has more than 100,000 products_$0.005 per item.
- Dangerous items: (Excluding Clothes)_$0.06 to $0.16 / (Including Clothes)_$0.08 to $0.29
- Dealing in Textbook rentals_$5.00 per rental
- FBA sellers wanting Amazon to use their boxes for product shipment_$0.15 per unit (November to December)-$0.10 rest of the months.
- Amazon repacked the item shopper returned_Service fee charged.
- Wanting Amazon to put a barcode on your product_$0.30/unit
- Products not eligible for Refurbishing (A category deal in beautifying old products to resell them)_ fee charged.
To sum it all, you have realized that there is not just a selling fee on Amazon but multiple other fees that come with it. However, you can lessen the situational costs by staying up to date with Amazon guidelines. However, you can save the cost that comes with situational fees if you play strategically.
For example, you can save the cost that comes with products staying longer than 6 months in Amazon’s warehouse by taking Amazon PPC management services. That means, the right advertisement will attract traffic to your brand and you will ultimately drive sales.
However, if you need any such service, you should not worry as urtasker have solutions for everything. From management to optimization and everything that comes in between. So avail the right services and save the extra cost.