Are you an Amazon seller who finds the fees confusing? Amazon’s market value hit $1.814 trillion in February 20241. It’s vital for you to know about different fees. These include sale fees, account fees, and fulfillment costs. They change based on what you sell and how much you charge.
By 2024, Amazon sellers will see fees rise by $0.15 per item. This is still cheaper than other shipping options2. Yet, Amazon is lowering some fees too. For instance, referral fees for clothing under $20 are dropping. Items under $15 will have a 5% fee. Those between $15 and $20 face a 10% fee2. Referral fees can be as low as 6% or as high as 45% based on the item type. However, most things like electronics or pet supplies have a 15% fee1.
In fulfillment, using Amazon’s FBA can be 70% cheaper than other options3. But, starting in 2024, there will be new fees. For example, there will be detailed rates for different item sizes. Plus, there’ll be a new fee for where Amazon puts your products. On average, this costs $0.27 for normal sizes and $1.58 for large items2.
Key Takeaways
- Amazon’s fee structure includes sale-related fees, seller account fees, and fulfillment & shipping fees.
- Referral fees vary by product category, ranging from 6% to 45%, with most products being charged a 15% referral fee.
- Amazon is introducing fee reductions for apparel products under $20 in 2024, with a 5% referral fee for items under $15 and a 10% fee for items between $15 and $20.
- FBA fees remain on average 70% less expensive than other major logistics providers, but Amazon is introducing granular rate cards and an inbound placement service fee in 2024.
- Understanding Amazon’s fee structure is essential for sellers to maximize their profits and make informed decisions about their selling strategies.
Amazon’s Sale-Related Fees
Being an Amazon seller means understanding the fees. Two main fees are referral and closing fees. These affect our profits, so knowing them is key.
Referral Fees
Referral fees are a cut of your sales price. They change with the product type. Sellers usually pay 8% to 15%4. Yet, it can be as low as 6% or up to 96%5 in certain categories. Always use a fee calculator to see your exact costs.
Minimum Referral Fees
Amazon also sets a Minimum Referral Fee for most categories. If yours has this rule, you pay the higher of the two fees. This means Amazon gets a set minimum every sale, no matter the price.
Closing Fees
For media items like Books and DVDs, there are also Closing Fees. These are an extra $1.80. They are added to the Referral Fees. This extra charge helps with Amazon’s sale costs.
There’s a special rule for apparel products under $20. For items under $15, fees drop from 17% to 5%. Items between $15 and $20 change from 17% to 10%6. Sellers in this category can save a lot on Amazon fees for cheaper items.
Knowing these fees well is crucial for setting prices right. Use a fee calculator and keep up with fee updates. This way, you can run a successful Amazon business.
Amazon Seller Account Fees
When signing up to sell on Amazon, we choose between an Individual or Professional Seller account. Our choice affects the fees we pay and what we can do on the site.
Individual Seller Accounts
The Individual Seller account is great for beginners or those selling less than 40 items monthly. It stands out because there’s no monthly fee for low-volume sellers. Still, each item sold costs $0.99, unlike professional sellers who don’t pay per-item fees7. Also, if you’re selling under 40 items a month, there’s no need for a monthly fee7.
It seems smart to pick the Individual account at first to save money. But remember, you won’t get to use some advanced tools or do certain ads. This could slow down your business growth.
Professional Seller Accounts
The Professional Seller account is for those aiming to grow on Amazon. Although there’s a $39.99 monthly fee87, it brings a lot of helpful features. These include unlimited product listings, powerful tools, bulk uploads, and ads. All crucial for expanding your business.
Getting the Buy Box is a big deal, and Professional sellers can aim for it. Since most Amazon sales happen here7, it’s key for selling more. Plus, no $0.99 fee per item like Individual sellers face7.
It’s key to understand the differences in Amazon accounts to make wise choices for our business. By carefully considering each account type’s costs and benefits, we can align our choice with our goals and budget.
Choosing between an Individual or Professional Seller account depends on your sales and future plans. As your business grows, you might need to upgrade your account to keep achieving success on Amazon.
Amazon’s Fee Structure Explained
Amazon’s fee structure for wholesale sellers includes subscription fees and referral fees, among others9. Referral fees, a percentage of the sale price, can be different for each product type. They range from 6% to 45% based on the category10. For example, Amazon Device Accessories have a 45% referral fee. Baby Products, on the other hand, have an 8% fee for items priced $10.00 or lower. For items over $10.00, the fee is 15%11.
On top of the referral fees, Amazon also charges a fixed closing fee for certain items. Products like books and DVDs have a closing fee of $1.80 each1110. There are also account fees to think about. These range from 99 cents per item for Individuals to $39.99 monthly for Professionals11. This monthly fee for Professionals is on top of other charges10.
Fulfillment by Amazon (FBA) has its own set of fees based on the item’s size and weight10. Items in FBA may cost more but have benefits like Prime eligibility and better visibility11.
| Category | Referral Fee |
|---|---|
| Amazon Device Accessories | 45% |
| Baby Products (≤ $10) | 8% |
| Baby Products (> $10) | 15% |
| Books, Music, Video | 15% |
| Computers | 8% |
| Jewelry | 20% |
Sellers can price their products to include Amazon’s fees and charges while still being competitive10. Using discounts and fee reduction tactics can lower costs and boost earnings9. Understanding Amazon’s fees and planning strategically can help sellers keep profits high and grow sustainably on the platform10.
Amazon Fulfillment & Shipping Fees
Understanding Amazon’s fulfillment and shipping fees is key to making money. You have a few options, each with different amazon fulfillment fees. It’s important to know what these costs are.
Fulfillment by Merchant (FBM) Fees
Choosing Fulfillment by Merchant (FBM) means you handle everything. You pack and ship items yourself. But, you must pay for storage, packing materials, and shipping.
Seller-Fulfilled Prime (SFP) Fees
With Seller-Fulfilled Prime (SFP), you ship orders and still show the Prime badge. You need to meet Amazon’s strict rules like fast delivery and good service. Amazon also takes a 2% fee for each SFP order, on top of the regular fees12.
Fulfillment by Amazon (FBA) Fees
Fulfillment by Amazon (FBA) is a big hit. It uses Amazon’s places to store, pack, and send your stuff. With FBA, you get help with everything, but it comes at a cost.
FBA charges for storing, packing, and sending each item based on its size and how fast you want it shipped13. For most average-sized items, fees start at $3.22 and can be over $6.10, depending on how heavy it is14. Big items start at $9.73 and get pricier from there, based on their size14. Clothes also have their own fee structure, ranging from $3.43 to over $7.17+14.
You’re also charged for where you store your stuff in Amazon’s places. The size, type, and how long you keep it all affect this fee13. This fee range from $0.56 to $3.34 per cubic foot14. If you keep items for more than a year, it costs a bit more each month, up to $6.90 per cubic foot14.
Amazon made new rules for storing things on February 5th, 2024. They changed the sizes and added a new size tier for small but heavy items1312. These changes also affect the amazon fba fees you pay for each product type.
| Fee Type | Fee Range |
|---|---|
| Referral Fees | 6% – 45% of sale price (typically 15%)12 |
| FBA Fulfillment Fees (Standard Size) | $3.22 – $6.10+ (based on weight)14 |
| FBA Fulfillment Fees (Oversize) | $9.73 – $179.28+ (based on size)14 |
| Monthly Inventory Storage Fees | $0.56 – $3.34 per cubic foot14 |
| Long-Term Storage Fees (181-365+ days) | $0.50 – $6.90 per cubic foot14 |
To lower your amazon shipping fees, check your storage often. Get rid of slow sellers to dodge extra fees. Amazon charges to move or throw away products, from $0.97 to $13.05+ per piece, depending on weight14.
Think hard about what and how you sell, and how you get it to buyers. Making smart choices can keep your Amazon business profitable. Always watch for fee updates and think about your best moves for saving money.
Conclusion
Understanding Amazon’s fee structure is key for sellers. It can be tough at first but knowing how fees work is vital. For example, referral fees vary from 8% to 45%15. There are also minimum referral fees and closing fees for certain products16. These fees affect how much money sellers make. Sellers must also pay a fee per item sold, like $0.99 for individuals or $39.99 per month for professionals15.
Amazon’s fees for shipping and handling are important too. There are three main options for sending out orders. These are Fulfillment by Merchant (FBM), Seller-Fulfilled Prime (SFP), or Fulfillment by Amazon (FBA). Each option has its own costs. FBM fees change based on the seller’s plan. SFP adds a 2% fee per order because it shows the Prime badge17. FBA fees for normal-sized products are between $3.22 and $4.37 each15. These costs may drop by $0.20 each starting April 15, 202417.
It’s important for sellers to keep up with fee changes. For instance, there are now lower referral fees for clothes under $20 and reduced fees for items under $15 since January 15, 202417. Using tools like Amazon’s fee calculator is wise. It helps sellers make smarter choices. By learning more about Amazon’s fees, sellers can do better on the platform in the long run.
Source Links
- https://www.saasant.com/blog/what-is-amazon-referral-fee/ – What is the Amazon Referral Fee
- https://www.sellersnap.io/amazon-fee-changes-and-updates/ – Amazon Fee Changes 2024: Significant Fee Updates
- https://sellingpartners.aboutamazon.com/Update to US referral and Fulfillment by Amazon fees – Update to US referral and Fulfillment by Amazon fees
- https://www.wix.com/blog/ecommerce/2022/10/how-much-does-it-cost-to-sell-on-amazon – How much does it cost to sell on Amazon? A detailed breakdown
- https://shopkeeper.com/amazon-seller-fees-list – Amazon Seller Fees Explained | Full List with Examples
- https://sellercentral.amazon.com/seller-forums/discussions/t/ce3a1455-3fdb-4317-991d-ca501f0a75a3 – Amazon
- https://www.repricer.com/blog/amazon-seller-fees/ – What it Costs to Sell on Amazon in 2024 (Complete Guide)
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- https://www.smartscout.com/amazon-selling-guides/understanding-amazons-fee-structure-for-wholesale-sellers – Understanding Amazon’s Fee Structure for Wholesale Sellers
- https://blog.lengow.com/amazon-marketplace/amazon-selling-fees – Amazon Selling Fees: What You Need to Know – Lengow Blog
- https://fitsmallbusiness.com/amazon-seller-fees/ – Amazon Seller Fees: Cost of Selling on Amazon Explained
- https://www.helium10.com/blog/amazon-fba-seller-fees/ – Amazon FBA Fees: Cost of Selling on Amazon in 2024 | Helium 10
- https://supplychain.amazon.com/pricing – Multi-Channel Fulfillment Pricing
- https://www.shipbob.com/blog/amazon-fba-fees/ – Amazon FBA Fees Explained: A Guide to FBA Seller Costs in 2024
- https://finally.com/blog/accounting/amazon-seller-fees/ – Amazon Seller Fees: Essential Breakdown for Profitable Selling
- https://management.org/amazon-seller-fee-costs – How Much are Amazon Seller Fees?
- https://zignify.net/how-much-does-it-cost-to-be-an-amazon-seller-cost-of-selling-on-amazon/ – Understanding Amazon Seller Fees
