Amazon Seller Fees: What You Need to Know

When selling on Amazon, understanding the seller fees is crucial to managing your business effectively. Amazon offers various selling plans, and the fees you pay will depend on the plan you choose and the type of products you sell. Here's a detailed overview of the fees you might encounter as an Amazon seller.

Selling Plans
Amazon offers two main selling plans: the Individual plan and the Professional plan.

1. Individual Plan: This plan is suitable for sellers who list fewer than 40 items per month. There is no monthly subscription fee for this plan, but sellers are charged $0.99 per item sold. In addition, you will be subject to other selling fees such as referral fees and variable closing fees.

2. Professional Plan: This plan is designed for sellers who plan to list more than 40 items per month. The subscription fee for this plan is $39.99 per month. Sellers on this plan do not pay the $0.99 per-item fee but will still be responsible for referral fees and closing fees.

Referral Fees
Referral fees are a percentage of the selling price of each item sold and vary by category. For example, the referral fee is generally 15% for most categories, but it can range from 6% to 45% depending on the product category. Here’s a breakdown of some common categories:

• Books: 15%
• Electronics: 8%
• Clothing: 17%
• Jewelry: 20%

Closing Fees
In addition to referral fees, Amazon charges a closing fee on media items such as books, DVDs, music, and video games. This fee is $1.80 per item sold.

Fulfillment Fees
If you use Amazon’s Fulfillment by Amazon (FBA) service, you will incur additional fees for warehousing and shipping. The fees for FBA are divided into two main categories:

1. Fulfillment Fees: This fee is charged per unit and covers the picking, packing, and shipping of your products. For standard-size items, the fee is $2.50 to $5.00 per unit, depending on the size and weight. For oversized items, the fee ranges from $8.00 to $75.00 per unit.

2. Monthly Storage Fees: These fees are for storing your products in Amazon's warehouses. For standard-size items, the fee is $0.75 per cubic foot from January to September and $2.40 per cubic foot from October to December. For oversized items, the fee is $0.48 per cubic foot from January to September and $1.20 per cubic foot from October to December.

Additional Fees
Other fees that may apply include:

• High-Volume Listing Fees: For sellers with more than 100,000 active listings, there may be additional fees for maintaining a large inventory.
• Refund Administration Fees: If you process a refund for a customer, Amazon will retain the referral fee but refund the variable closing fee.

Understanding and managing these fees is essential for maximizing your profitability on Amazon. By choosing the right selling plan, utilizing FBA effectively, and keeping track of your expenses, you can ensure that your business remains profitable while leveraging Amazon’s vast marketplace to reach customers worldwide.