What Percentage Does Amazon Take from Sellers?

Amazon's fees for sellers vary based on the type of account, category of products, and services used. Sellers can expect Amazon to take a percentage ranging from 6% to 45% of each sale, depending on several factors. This article will delve into the different fees Amazon charges, helping sellers understand what to expect when selling on the platform.

Amazon Seller Fees Overview

Selling on Amazon is a popular choice for many businesses due to the platform's massive reach and user base. However, this comes with costs, and understanding these fees is crucial for maintaining profitability. The main fees that Amazon charges include:

1. Referral Fees: This is a percentage of the total sales price (including shipping) and varies by product category. For most categories, the referral fee ranges from 8% to 15%. Some categories, such as accessories for Amazon devices, can have higher fees.

2. Subscription Fees: Sellers can choose between an individual plan and a professional plan. The individual plan charges $0.99 per item sold without a monthly subscription fee, while the professional plan charges $39.99 per month but with no per-item fee.

3. Fulfillment by Amazon (FBA) Fees: If sellers use Amazon's FBA service, they will pay fees for storage, picking, packing, and shipping. These fees are generally $2.50 to $5.00 per unit, depending on size and weight. Long-term storage fees apply if inventory remains unsold for over 365 days.

4. Closing Fees: This is a flat fee of $1.80 per media item sold, such as books, DVDs, or video games.

5. High-Volume Listing Fees: If a seller lists more than 100,000 items in a month, Amazon charges $0.005 per listing over this threshold.

Fee Breakdown by Product Category

The fees Amazon charges can vary significantly depending on the product category. Here is a breakdown of referral fees by category:

Product Category	Referral Fee
Amazon Device Accessories	45%
Jewelry	20%
Beauty & Personal Care	8%
Books	15%
Electronics	8%
Clothing & Accessories	17%
Furniture	10%
Toys & Games	15%

As illustrated, Amazon device accessories have the highest referral fee, while categories like electronics have lower fees.

Additional Considerations

It's essential to factor in additional costs that could affect your profit margins:

1. Shipping Costs: Whether fulfilling orders yourself or using FBA, shipping costs can eat into your profits. FBA sellers can leverage Amazon's shipping discounts, but these costs can still add up.

2. Advertising Costs: To boost visibility, many sellers opt for Amazon Advertising. Costs can vary based on keywords, competition, and ad placements.

3. Refund Administration Fees: If a customer returns an item, Amazon refunds the referral fee minus a small administration fee, typically $5 or 20% of the referral fee, whichever is less.

Example Scenarios

To provide a better understanding, let's look at two examples:

1. Selling a $50 Electronics Item:

   • Referral Fee: $4 (8%)
   • FBA Fees: $3
   • Total Amazon Fees: $7 (14% of the sale price)
   • Net Profit Before Other Costs: $43

2. Selling a $100 Jewelry Item:

   • Referral Fee: $20 (20%)
   • FBA Fees: $4
   • Total Amazon Fees: $24 (24% of the sale price)
   • Net Profit Before Other Costs: $76

Conclusion

Selling on Amazon can be profitable, but it's vital to understand the various fees involved. By calculating these costs ahead of time, sellers can price their products more effectively and ensure a healthy profit margin.

Whether you're selling electronics with a relatively low fee or jewelry with a higher percentage, knowing what Amazon takes will help you make informed decisions and succeed on the platform.