How Much Does Amazon Charge Individual Sellers?

When it comes to selling on Amazon, individual sellers need to understand the fees involved to ensure they are making a profit. Amazon offers a platform that reaches millions of customers worldwide, but accessing this market comes with various costs. In this article, we will break down the fees charged to individual sellers on Amazon, so you can better understand what to expect.

Amazon Selling Fees Overview

Amazon offers two types of selling plans for individuals: the Individual plan and the Professional plan. However, this article focuses specifically on the fees associated with the Individual plan.

1. Subscription Fee

Unlike the Professional plan, the Individual selling plan does not have a monthly subscription fee. Instead, it operates on a pay-per-sale model. This means you won’t need to pay a recurring fee, but there is a fee associated with each sale you make.

2. Per-Sale Fee

For each item sold under the Individual plan, Amazon charges a $0.99 per-item fee. This fee is in addition to other selling fees and is automatically deducted from your earnings. This is a key aspect of the Individual plan and can add up quickly if you are selling a high volume of products.

3. Referral Fees

In addition to the per-item fee, Amazon charges a referral fee on each sale. The referral fee is a percentage of the item's selling price, which varies depending on the product category. For most categories, this fee ranges from 6% to 45%. Below is a table outlining the referral fees for various categories:

Category	Referral Fee (%)
Books	15%
Electronics	8%
Clothing & Accessories	17%
Home & Kitchen	15%
Toys & Games	15%
Jewelry	20%

4. Closing Fees

For media items such as books, music, DVDs, and videos, there is an additional closing fee of $1.80 per item. This fee is added to the referral fee and per-item fee, and is specifically for these categories.

5. Additional Costs

Beyond the basic selling fees, there are additional costs that sellers should be aware of. These include:

• Shipping Costs: If you are fulfilling orders yourself, you will need to cover the cost of shipping. Amazon offers various shipping options and rates, but it’s essential to factor these into your pricing strategy.
• Packaging Costs: Proper packaging is crucial for protecting your products during shipping, which can incur additional costs.
• Returns: If a customer returns a product, you may be responsible for return shipping costs and handling.

6. Summary of Fees

To give you a clearer picture, here’s an example calculation of the fees for a product sold under the Individual plan:

• Item Selling Price: $20.00
• Per-Item Fee: $0.99
• Referral Fee (15% of Selling Price): $3.00
• Closing Fee (for media items): $1.80 (if applicable)
• Total Fees (excluding shipping and packaging): $4.79

Thus, if you sell a product for $20.00, after deducting the fees, you would earn $15.21, assuming the product is not categorized under media items with the closing fee.

Conclusion

Selling on Amazon as an individual comes with its share of fees and costs. The key fees include the per-item fee, referral fee, and potentially closing fees for media items. By understanding these charges and how they impact your overall profit, you can better manage your selling strategy and ensure that you are pricing your products effectively.

If you’re considering starting to sell on Amazon, it’s crucial to factor these fees into your pricing and business plan. While the Individual plan can be a good starting point, especially if you’re testing the waters, you might want to explore the Professional plan if you’re planning to scale your business, as it offers different fee structures and additional benefits.