How Much Does Amazon Charge Sellers?
Amazon Selling Plans
Amazon offers two primary selling plans: Individual and Professional.
Individual Plan: This plan is suitable for sellers who plan to list fewer than 40 items per month. Amazon charges a $0.99 fee per item sold on top of other applicable fees. This plan does not require a monthly subscription fee, making it a low-cost option for those just starting out.
Professional Plan: For sellers who intend to list more than 40 items per month, the Professional Plan is more cost-effective. This plan has a monthly subscription fee of $39.99. Sellers with this plan do not pay the per-item fee but are subject to other fees that may vary depending on the product.
Referral Fees
Regardless of the selling plan, all sellers are subject to referral fees, which are a percentage of the item's total sales price. The referral fee varies by category and typically ranges from 6% to 45%. For example:
- Electronics: Typically 8% to 15%
- Clothing and Accessories: Approximately 17%
- Books: Around 15%
These percentages are calculated based on the item's total selling price, including shipping but excluding taxes.
Closing Fees
For media items such as books, music, videos, and DVDs, Amazon charges a closing fee in addition to the referral fee. As of the latest update, the closing fee is $1.80 per item. This fee is designed to cover the cost of handling and processing these types of products.
Fulfillment Fees
Sellers using Amazon's Fulfillment by Amazon (FBA) service are charged fulfillment fees. These fees cover the cost of storing, packing, and shipping items from Amazon’s warehouses. The fulfillment fee is based on the size and weight of the item.
- Standard-size items: Fees range from $2.50 to $5.25 per unit.
- Oversize items: Fees range from $8.26 to $75.78 per unit, depending on the item's dimensions and weight.
Additionally, there are monthly storage fees for items stored in Amazon's warehouses. These fees are typically $0.75 per cubic foot from January to September and $2.40 per cubic foot from October to December.
Advertising Fees
To increase product visibility, sellers can use Amazon’s advertising services, such as Sponsored Products and Sponsored Brands. These services are charged based on a pay-per-click (PPC) model. Sellers set a bid amount for clicks, and they pay only when a shopper clicks on their ad.
- Sponsored Products: Costs vary widely but can range from $0.10 to $5.00 per click, depending on the competition for the keywords.
- Sponsored Brands: These ads appear at the top of search results and cost similarly, based on bidding and competition.
High-Volume Listing Fees
For sellers with a large inventory, Amazon may apply additional fees for maintaining a high number of listings. These fees are usually determined based on the volume and type of products being listed.
Return Processing Fees
If a customer returns an item, sellers using FBA may incur a return processing fee. This fee is typically $2.50 for standard-size items and $3.00 for oversize items. This fee is charged per returned item to cover the cost of handling returns.
Additional Fees
Amazon also charges various additional fees, which may include:
- Refund Administration Fees: When a customer returns a product, Amazon charges a refund administration fee that is equal to the selling fee for that item.
- Long-Term Storage Fees: Items that have been in Amazon’s warehouses for over 365 days may incur long-term storage fees. These fees are typically $6.90 per cubic foot or $0.15 per unit.
Summary of Fees
To provide a clearer picture, here’s a summary table of the key fees:
| Fee Type | Amount (US Dollars) |
|---|---|
| Individual Plan Fee | $0.99 per item sold |
| Professional Plan Fee | $39.99 per month |
| Referral Fee | 6% to 45% of the total sales price |
| Closing Fee (Media) | $1.80 per item |
| Fulfillment Fee (Standard) | $2.50 to $5.25 per unit |
| Fulfillment Fee (Oversize) | $8.26 to $75.78 per unit |
| Monthly Storage Fee | $0.75 to $2.40 per cubic foot |
| Advertising Fee | $0.10 to $5.00 per click |
| Return Processing Fee | $2.50 (standard) to $3.00 (oversize) per item |
| Refund Administration Fee | Equal to the selling fee for the item |
| Long-Term Storage Fee | $6.90 per cubic foot or $0.15 per unit |
Understanding these fees is crucial for sellers to accurately calculate their costs and set prices that ensure profitability. By carefully considering each fee type and its impact on their overall expenses, sellers can better manage their Amazon business and maximize their success on the platform.
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