Navigating the world of e-commerce can feel like a maze, but understanding the intricacies can make a world of difference to your bottom line. One of the most prominent players in this game, Amazon, has a multitude of Amazon seller fees associated with selling on its platform. Whether you’re a newbie seller or someone wanting a refresher, let’s dive deep into what these fees entail.
1. Amazon Professional vs. Individual Seller Accounts
First thing’s first. Amazon offers two types of selling plans: Professional and Individual.
- Professional Seller Account (Monthly Fee: $39.99): This is ideal if you’re selling more than 40 items per month. The perks include bulk listing tools, eligibility for top placement on product detail pages, and the ability to sell across North America.
- Individual Seller Account (No monthly fee): For those who sell fewer than 40 items a month, this is your go-to. However, you’ll pay a $0.99 fee for each item sold.
2. Referral Fees
Each time you sell an item, Amazon takes a percentage of the total transaction, known as the referral fee. This varies by category and can range from 6% (like for personal computers) up to 45% (for Amazon device accessories). It’s essential to understand these percentages because they’ll affect your pricing strategy.
3. Fulfillment by Amazon (FBA) Fees
If you’re using Amazon’s FBA service, where they handle storage, packaging, and shipping for you, you’ll incur two main fees:
- Storage Fees: These are charged for the space your products take up in Amazon’s warehouses. Rates fluctuate depending on the time of year (October-December being pricier due to the holiday season).
- Fulfillment Fees: Based on the size and weight of your product, this fee covers the cost of picking, packing, and shipping your items. It’s crucial to keep an eye on this, especially if your product is bulky or heavy!
4. Closing Fees
For media products like books, music, videos, DVDs, video games, consoles, and software (BMVD products), Amazon charges a fixed closing fee. As of the last update, this sits at $1.80 per item.
5. Subscription & Miscellaneous Fees
- Rental Book Service Fee: For textbook rentals, Amazon charges a fee of $5 for each rental.
- High-Volume Listing Fee: If you have an active non-media listing that hasn’t sold in 12 months, a $0.005 fee per listing might apply.
- Refund Administration Fee: If you refund a customer, Amazon might refund part of the referral fee, but they’ll charge a refund administration fee, either $5 or 20% of the original referral fee, whichever is smaller.
To Sum It All Up…
Amazon offers an exceptional platform with millions of potential customers. However, to maximize your profits, you need a solid grasp on their fee structure. It’s not just about how much you’re selling a product for, but also how much you’re spending to make that sale.
Before setting up shop, or if you’re reassessing your current strategy, make sure to:
- Evaluate which account type best suits your sales volume.
- Factor in referral fees when pricing your products.
- Consider whether FBA is the right choice, especially regarding the size and weight of your products.
- Remember, knowledge is power – and in this case, potentially more profit for your business!
Happy selling, and may your ventures on Amazon be ever fruitful! You can see the most updated version of Amazon seller fees here.
How Can Staxxer Help?
As an Amazon seller, you’re already busy enough. So leave your European VAT to Staxxer: we can apply for a VAT number for you in every EU country, and do your VAT returns for you. Including the One Stop Shop.
We focus on the figures, you focus on growth. Want free, personal advice? Schedule a meeting below.