Does It Cost Money to Open an Amazon Seller Account?

When it comes to selling products online, Amazon is one of the largest and most popular platforms. Many entrepreneurs and businesses are eager to join Amazon’s marketplace, but a common question is whether there are any costs associated with opening an Amazon seller account. In this article, we'll delve into the details, including the types of accounts available, associated fees, and other relevant information to help you understand the financial implications of becoming an Amazon seller.

To start, Amazon offers two types of seller accounts: the Individual account and the Professional account. Each has its own set of features and costs.

1. Individual Account:
An Individual account is geared towards sellers who plan to sell fewer than 40 items per month. There is no monthly subscription fee for this account type. Instead, Amazon charges a per-item fee of $0.99 for each item sold. This type of account is ideal for casual sellers or those just starting out who don’t want to commit to a monthly fee.

2. Professional Account:
A Professional account is designed for sellers who expect to sell more than 40 items per month. This account comes with a monthly subscription fee of $39.99. In return, Professional sellers avoid the $0.99 per-item fee, which can be beneficial if you're selling in high volume. Professional accounts also offer additional features like access to advanced selling tools, reporting, and the ability to run promotions and discounts.

Additional Fees:
Regardless of the account type, Amazon sellers are subject to various additional fees that are important to consider:

• Referral Fees: Amazon charges a referral fee on each item sold, which is a percentage of the total sale price. The fee varies by category but generally ranges from 6% to 45%. For most categories, it is around 15%.

• Variable Closing Fees: For media items such as books, music, and electronics, there is an additional closing fee. This fee is $1.80 per item.

• Fulfillment Fees: If you use Amazon’s FBA (Fulfillment by Amazon) service, there are fees associated with storing and shipping your products. FBA fees include a per-unit fee for picking, packing, and shipping, as well as a monthly storage fee based on the volume of your inventory.

• High-Volume Listing Fees: For sellers with a large number of SKUs (Stock Keeping Units), Amazon may charge additional fees for managing high-volume listings.

Cost Breakdown Example:

Fee Type	Individual Account	Professional Account
Monthly Subscription	$0.00	$39.99
Per Item Fee	$0.99	$0.00
Referral Fee	Varies by Category	Varies by Category
Variable Closing Fee	$1.80 (for media)	$1.80 (for media)
FBA Fees	Additional	Additional

Conclusion:
Opening an Amazon seller account does not come with a direct cost for an Individual account, but selling through this account incurs a per-item fee. For those who anticipate higher sales volumes or wish to access more advanced features, a Professional account with a monthly fee may be more cost-effective.

Understanding these costs and planning accordingly can help you make informed decisions about how to best manage your Amazon selling experience. Whether you choose an Individual or Professional account, being aware of the various fees and their impacts on your profits is crucial to running a successful Amazon business.