Amazon Seller Fees and Pricing
16 Nov 2020
If you want to grow your e-commerce business as an e-commerce business owner, a popular and successful way is selling on Amazon. But one shouldn’t think that it’s too easy. One of the main points that should be taken into account is the fees and prices of this marketplace.
Let’s see the key points further, especially:
- Amazon fees and pricing,
- Amazon profit calculator,
- Amazon fee calculator,
- Amazon FBA (Fulfillment by Amazon)
The platform of Amazon has set the following types of fees: monthly subscription fees, sale-related fees, FBA fees, FBM fees, some additional minor fees.
Monthly Subscription Fees
When you register on Amazon, you have to choose your plan and become either an individual seller or a professional. The difference between the types of accounts regarding the fees are the following:
- Professional account – 39.99 USD monthly cost, no fee per item,
- Individual account – no monthly cost, 0.99USD fee per item.
Later, when you have registered and chosen your plan, you start selling and encounter the fees on sold items. The fees are as follows:
This type of fee is like a commission which they take every time you sell something. Usually, it is about 15% or less, but it can vary from 45% to 96% for different categories. Thus, the majority of categories take 0.30USD with some exceptions when there is no fee (Books, Collectibles, Fine Art, Grocery Food, Music, Warranties, etc.). And some of the categories have higher referral fees based on sales (for example, in the case of Sports equipment with the price under 100USD the fee is 20%, with the price between 100-1000USD the fee is 10%, with the price of more than 1000USD the fee becomes 6%).
Variable Closing Fees
With Media’s sales (videos, music, books, DVDs, software, video games, consoles), a fee of 1,35USD-1,80USD called the closing fee is charged. This fee is added to the ones mentioned before.
Refund Administration Fee
If you have sold a product, but later the buyer decides he/she doesn’t need it and sells it back, you get all the money paid back (even the referral fee). But for this operation, you also have to pay another fee – the refund administration fee. Usually, it is 5USD or 20% of your referral fee. You can choose which variant is less.
Fulfilment by Amazon (FBA) Fees
A famous Amazon tool is Fulfillment by Amazon, and it has pricing and fees as well. Let us look at the main points regarding FBA fees. More detailed info about Amazon FBA can be found here. The three main types of FBA fees are:
- Order fulfilment fee charged according to the product’s weight and size—lighter the product – less the fee and heavier the higher. For products lighter than 0,2kg, the fee is 2,14USD. If products are more than 40kg, the price is 0,79USD for 1 pound. For items heavier than 68kg, the price is lowered – 75,78USD.
- Monthly storage fee charged for using Amazon’s warehouse. The following fee differs – in January-September, it’s 0,69USD for 1 cubic foot, in October-December – 2,40USD per cubic foot. For oversize items, there is a discount of 0,48USD per cubic foot and 1,20USD per cubic foot.
- Long-term storage fee charged for not selling items on time (keeping them for 6 months or longer than a year). Calculated 2 times a year – August 15 and February 15.
Amazon FBA calculator
All the fees and pricing we mentioned above you can count with the Amazon calculator. This tool is essential, as you can quickly find out your profit and find out if the deal is beneficial. The calculation includes 3 main things: starting costs, changing costs and marketing costs. Amazon FBA calculator works on different marketplaces in different countries. After finding the country that suits you, you start to search for a similar product you want to sell. Finally, the calculator shows several rows and 2 columns. Here it would help if you focused on the right column. You fill in the price, the cost to ship, and the costs for 1 item. After these steps, you click on the Calculate button and the calculator does everything.
To sum up all the information in the article, we would like to mention once more: planning an e-commerce business is immense and extensive work to do. And to gain popularity and profit, you need to calculate everything in advance. Amazon, as one of the top platforms, suggests all the opportunities to grow business. Just take into account all the possible fees, think of them intently, and calculate them both by yourself and with the help of Amazon.
By the way, all the accountancy of your business can be alleviated with our eSwap opportunities. Here you can do all your inventory management, stock management of your Amazon-based business. Amazon integrations (especially Amazon FBA inventory management by eSwap) can be a huge help in your work. The Xero accounting can perfectly do accounting and Quickbooks integrated with our platform. You can also try the calculator immediately on our platform.