If you want to sell on Amazon, the first question should be whether it will be profitable or not.
In fact, you have to make profits, or you don’t have a business.
And of course, you have to keep in mind manufacturing costs per unit, shipping costs, taxes, etc…
However, you also have to consider Amazon fees like fulfillment fees or fees for your Amazon seller account.
So, if you want to learn more about Amazon seller fees, you’ve come to the right place.
This article is the complete guide to Amazon seller fees for 2023.
Here’s what we will cover:
- How To Calculate Amazon Fees
- Amazon Fees All Sellers Have To Pay
- Amazon FBA Fees
- Amazon FBM Fees
- Optional Service Fees
Let’s get started.
How To Calculate Amazon Seller Fees
If you want to sell a product on Amazon, you first have to calculate your Amazon seller fees.
There’s definitely no way around this calculation. You need to know if you’ll make money or lose money.
Here’s a chart showing the average profit margin of Amazon sellers:
Most sellers make profits between 10% and 50%.
That’s great!
In general, you should aim for a profit margin of at least 10%.
What you need is to get Helium 10’s Profitability Calculator and check the margin for your product.
Here’s how to do that:
1. Sign up for a free Helium 10 account.
2. Download Helium 10’s Chrome Extension.
3. Search for a product you want to sell and start the Profitability Calculator.
4. You can change all the important values such as weight or manufacturing cost. If you don’t know these values yet, try to estimate them.
5. Finally, make sure that your profit margin is higher than 10%.
Amazon Fees All Sellers Have To Pay
There are fees that all sellers have to pay and fees only for FBA sellers, such as FBA fulfillment fees. Amazon also has special fees for over-size products and additional fees for selling books, blue-rays, DVDs, or CDs.
In this chapter, you will find the fees that all sellers have to pay, regardless of their status and the type of product they sell.
Referral Fees
Referral fees apply once you sell a product on Amazon. In fact, you have to pay a small fee to Amazon because they refer a customer to you.
You can calculate the referral fees with the Helium 10 Chrome Extension mentioned above.
Referral fees vary by product category and are calculated as a percentage of the sales price.
Here’s a comprehensive list of all referral fees:
Fees for Amazon Seller Account
Amazon offers two selling plans:
- Individual Seller Account
- Professional Seller Account
The Individual Seller Account has no monthly flat fee, while the Professional Seller Account costs $39.99 per month.
However, if you have an Individual Seller Account, you have to pay $0.99 in selling fees for every item you sell.
Obviously, the Individual Seller Account only makes sense if you sell less than 40 products per month. Otherwise, the Professional Seller Account would be cheaper.
Furthermore, keep in mind that the Professional Seller Account has more benefits, like…
- Advertising opportunities
- Top placements on product detail pages
- Advanced selling tools like APIs and Reports
- Selling products in restricted categories
Refund Administration Fees
If you have to refund a customer, Amazon will refund you the referral fee.
However, they charge a processing fee of either $5.00 or 20% of the referral fee, depending on which amount is lower.
So your maximum cost would be $5.
Amazon Fees FBA Sellers Have To Pay
With Amazon FBA, you store your products in an Amazon Fulfillment Center.
When a customer orders your product, Amazon ships it from the Amazon warehouse to the customer.
Furthermore, Amazon also takes care of customer service and returns.
Amazon FBA saves you valuable time and allows you to concentrate on scaling and marketing your Amazon business.
Plus, FBA products are automatically eligible for Amazon Prime.
However, there are additional costs for the FBA service:
- Fulfillment Fees
- FBA Storage Fees
Fulfillment Fees
Fulfillment costs depend on two main factors:
- Apparel/Non-apparel
- Weights and dimensions
In terms of size, Amazon mainly distinguishes between standard size (small standard size/large standard size) and over-size products (small oversize/large oversize).
Here’s an overview of all fulfillment fees:
FBA Storage Fees
Amazon charges monthly inventory storage fees based on the daily average volume (measured in cubic feet) for the space your inventory occupies in Amazon fulfillment centers.
In the winter months (October-December), storage fees are a bit more expensive than in the summer months (January-September) because all sellers want to restore their inventory.
Here’s an overview of the normal monthly inventory storage fees:
You should also consider that Amazon charges long-term storage fees. They check their inventory on the 15th of each month and record every product that has been stored for 365 days or longer.
For those stored 365 days or longer, Amazon charges a long-term fee of $6.90 per cubic foot or $0.15 per unit, whichever is greater.
Also, they charge Amazon FBA sellers an extra fee for dangerous goods:
Fees FBM Sellers Have To Pay
If you choose FBM as your fulfillment method, you have to pay…
- Referral Fees
- Fees for Amazon Seller Account
- Special fees (like refund administration fees)
However, FBM costs are often higher than FBA costs since FBM sellers have to store, pack, and ship their products on their own.
What costs FBM sellers more are so-called opportunity costs.
Opportunity costs are losses that result from not taking advantage of existing opportunities.
In fact, let’s assume your hourly rate is $20/h, and you have to handle storage, packing, and shipping on your own.
Let’s say that this takes you about 10 hours every month.
This means that you lose $200/month.
And you also have to pay for storage, packaging, and shipping, although you handle it on your own.
I highly recommend comparing FBM and FBA costs with this FBA calculator.
Optional Service Fees
Only a few sellers have to pay these fees, but it doesn’t matter if you’re an FBM or FBA seller.
Closing Fees
Media products such as books, DVDs, CDs, and Blu-Ray, come with a flat $1.80 fee per sale.
For example, if you want to sell books on Amazon, you have to pay these fees. But if you’re not selling books, DVDs or CDs, you don’t have to pay these fees.
High-Volume Listing Fee
If you’ve listed more than 100.000 ASINs on Amazon, you have to pay a monthly flat fee of $0.005 per ASIN if the ASIN meets the following criteria:
- Non-Media category
- The ASIN was created at least 12 months ago
- The ASIN has not sold in the past 12 months
Rental Book Service Fees
If you sell textbook rentals on Amazon, you have to pay a $5.00 fee per sale.
Amazon Fee Changes
I highly recommend checking out all Amazon Fee Changes inside the Amazon seller central.
Here’s an overview of all recent changes to the Amazon fees:
- 2021 FBA Fulfillment Fee Changes
- 2021 Amazon Referral and Program Fee Changesfba Fulfillment Fee Changes
- 2021 FBA Returns Processing Fee Changes
- 2021 FBA New Selection Program Changes
- 2021 FBA Fee Changes for Removals, Disposals, and Manual Processing Fee
- 2021 FBA Small and Light Fee Changes
Hope This Article Was Helpful!
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