Amazon Selling Fees in Australia: A Comprehensive Guide

If you’re considering selling on Amazon in Australia, understanding the associated fees is crucial to effectively managing your business and maximizing profitability. This comprehensive guide will walk you through the various fees that sellers may encounter and how they can impact your overall revenue.

1. Amazon Selling Plans

Amazon offers two types of selling plans in Australia:

• Individual Plan: This plan is ideal for those who sell fewer than 40 items per month. There is no monthly subscription fee, but you will incur a fee of $0.99 per item sold.
• Professional Plan: This plan is suited for those who sell more than 40 items per month or want access to advanced selling tools. It costs $49.95 per month, regardless of the number of items sold.

2. Referral Fees

Referral fees are a percentage of each sale made on Amazon. These fees vary by product category but generally range from 6% to 45%. Here’s a breakdown of some common categories:

Category	Referral Fee Rate
Electronics	8%
Books	15%
Clothing and Accessories	17%
Home & Kitchen	15%
Health & Personal Care	15%

3. Closing Fees

For media items such as books, music, videos, and DVDs, Amazon applies a closing fee. This fee is $1.00 per item.

4. Fulfillment Fees

If you use Amazon’s Fulfillment by Amazon (FBA) service, you’ll incur additional fees. These fees are divided into two categories:

• Fulfillment Fees: Charged per unit, these fees cover picking, packing, and shipping. The fees vary based on the size and weight of the item. For example:

  • Standard Size (up to 1 lb): $3.31 per unit
  • Standard Size (1 lb to 2 lb): $4.71 per unit
  • Oversize (up to 2 lb): $8.26 per unit

• Monthly Storage Fees: These fees are charged based on the amount of space your inventory occupies in Amazon’s warehouses. The standard rates are:

  • January to September: $0.75 per cubic foot
  • October to December: $2.40 per cubic foot

5. High-Volume Listing Fees

If you have more than 2 million active listings, Amazon may charge you a high-volume listing fee. This fee is $0.05 per listing per month.

6. Refund Administration Fees

If you issue a refund to a customer, Amazon charges a refund administration fee. This fee is 20% of the referral fee for the refunded item.

7. Other Potential Fees

In addition to the primary fees outlined above, there may be other fees depending on your specific situation, such as:

• Long-Term Storage Fees: Applied to items that have been in Amazon’s warehouse for more than 365 days.
• Returns Processing Fees: Applicable if you offer returns for products fulfilled by Amazon.

8. Fee Calculators

To help manage and predict these costs, Amazon provides a fee calculator tool. This tool allows you to estimate the costs associated with selling a particular product and can be invaluable for pricing strategies.

9. Strategies to Minimize Fees

• Choose the Right Plan: Evaluate whether the Individual or Professional Plan suits your selling volume and business needs.
• Optimize Listings: Accurate and effective product listings can help improve sales and reduce the impact of referral fees.
• Leverage FBA Wisely: While FBA offers convenience, understanding and managing fulfillment costs is crucial for maintaining profitability.
• Regularly Review Fees: Keep track of fee changes and adjust your pricing strategies accordingly.

Understanding and managing these fees effectively can significantly impact your success on Amazon. By keeping these considerations in mind, you can make informed decisions that will help you maximize your profits and grow your business.