How Much Does Amazon Take from Sellers?

When selling products on Amazon, it's crucial for sellers to understand the fee structure, as it significantly impacts their profitability. Amazon charges various fees, which can be categorized into three main types: referral fees, variable closing fees, and fulfillment fees. Referral fees are a percentage of the item's selling price and vary by product category. For instance, the standard referral fee is 15%, but it can range from 6% to 45% depending on the category. Variable closing fees apply to media items, such as books and DVDs, with a flat fee of $1.80 per item. Lastly, fulfillment fees are associated with using Amazon's Fulfillment by Amazon (FBA) service, covering storage and handling costs. These fees are calculated based on the item's size and weight. Sellers using FBA can expect to pay around $2.50 to $5.00 per unit for standard-sized items, and higher fees for oversized items. It's essential for sellers to factor these fees into their pricing strategies to ensure profitability and competitiveness on the platform. Additionally, there might be other costs, such as advertising fees and long-term storage fees, which can further impact a seller's bottom line. Understanding and managing these fees is key to running a successful business on Amazon.