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If you want to start selling on Amazon, your first question might be whether it will be profitable or not.
After all, if you start a business on Amazon, you want it to be profitable.
In fact, you have to make profits, or you don't have a business.
And of course, you have to keep in mind costs per unit, shipping costs, taxes, etc..
However, you also have to consider Amazon FBA fees.
At the end of the day, if your margin is high, you will make money, and if your margin is low, you won't make money.
If you want to learn more about Amazon FBA fees, you've come to the right place.
This is the complete guide to Amazon FBA Fees in 2020.
Here's what we will cover:
Let’s get started.
If you want to sell on Amazon, you've to check Amazon fees for the products you want to sell.
There's definitely no way around this calculation. You need to know if you'll make or lose money.
Here's a chart showing the average profit margin of Amazon sellers:
Most sellers make profits between 10% and 50%.
In general, aim for a profit margin of at least 10%.
What you need to do now is to get Helium 10's Profitability Calculator and check the margin for your products.
Here's what to do:
3. Search for a product you want to sell.
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.
If you want to sell on Amazon, you have to pay for it. That's the game. Here're the fees all sellers have to pay:
Referral fees apply once you've sold a product on Amazon. All in all, you have to pay a small charge to Amazon because they refer a customer to you.
The fee calculation also works perfectly using the Helium 10 Chrome Extension mentioned above.
The Amazon seller fees vary according to the product category and are calculated as a percentage of the selling price.
Here's a comprehensive list of all referral fees:
To stay up to date, we recommend checking out the latest information here.
Amazon offers its sellers two plans. You can sign up as an Individual Seller or as a Professional Seller.
You can use the Individual Seller subscription without a monthly flat fee, while the Professional subscription costs you $39.99 per month.
However, if you use the Individual Seller Account, you have to pay $0.99 to Amazon for every single sale you make.
Of course, this only makes sense if you sell less than 39 products per month. Otherwise, the Professional subscription would be cheaper.
Furthermore, keep in mind that the Professional subscription offers other advantages, such as advertising opportunities.
If you have to refund a customer, Amazon will refund you the referral fee.
But 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.
If you use FBA, you store your products in an Amazon Fulfillment Center and as soon as a customer orders one of your products, Amazon packs it and ships it.
Furthermore, they take care of customer service and returns.
Amazon FBA saves you valuable time and allows you to concentrate on scaling and marketing your Amazon business.
However, you have to pay a fee for this service.
Here's what you'll be charged:
Shipping charges are calculated based on the dimensions and weights of your products.
Here's everything you have to know:
Storage fees at Amazon are calculated based on cubic foot. Prices in the winter months differ from prices in the summer months.
In the winter months, storage is a bit more expensive than in summer, because sellers want to restore their inventory.
You should also consider that Amazon charges monthly-storage-fees and long-term-fees.
They check 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, which is $6.90 per cubic foot or $0.15 per unit, whichever is greater.
More relaxed are the monthly fees.
Here they are:
And here're the storage fees for dangerous goods:
In fact, FBM sellers only have to pay the Amazon fees mentioned in the first chapter:
Yet, they often have to pay a higher price than an FBA seller, since they have to store, pack, and ship their products on their own.
What costs FBM sellers more are Opportunity Costs.
If you haven't heard of Opportunity Costs yet, here's what it is:
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 10h every month.
This means that you lose $200/month.
Also, you also have to pay for storage, packaging, and shipping, although you handle it on your own.
Only a few sellers have to pay these fees but no matter if you're an FBA or FBM seller, you have to pay them.
Media products such as books, DVDs, CDs, and Blu-Ray, come with a flat $1.80 fee per sale.
So if you want to sell one of these products, you have to pay these fees to Amazon.
If not, you're good to go.
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 this ASIN meets the following criteria:
So I don't think that you have to struggle with this fee.
If you sell textbook rentals on Amazon, you have to pay a $5.00 fee per sale.
We hope that we could help you with this article. Please give us feedback in the comment field below.
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