How Much Does Amazon Charge to Sell?

If you're considering selling on Amazon, it's crucial to understand the fees involved to effectively plan your pricing strategy and maximize your profits. Amazon's fee structure can be complex, with various charges depending on the type of product you're selling, the selling plan you choose, and additional services you might use. In this article, we'll break down the different fees associated with selling on Amazon, helping you navigate the costs and make informed decisions.

Amazon Selling Fees

When you sell on Amazon, you can choose between two selling plans: the Individual Plan and the Professional Plan. Each plan has its own set of fees:

  1. Individual Plan: This plan is suitable for sellers who plan to sell fewer than 40 items per month. The main fee here is the $0.99 per item sold. There are no monthly subscription fees with this plan.

  2. Professional Plan: This plan is designed for sellers who anticipate selling more than 40 items per month. It comes with a monthly subscription fee of $39.99. This plan does not have the per-item fee but other fees still apply.

Referral Fees

In addition to the selling plan fees, Amazon charges a referral fee on each item sold. This fee is a percentage of the total sales price, including shipping costs. The referral fee varies depending on the category of the product. Here's a general breakdown:

  • Consumer Electronics: 8% to 15%
  • Books: 15%
  • Clothing and Accessories: 17%
  • Jewelry: 20%

Fulfillment Fees

If you use Amazon’s Fulfillment by Amazon (FBA) service, additional fees apply. FBA fees cover the cost of storing, picking, packing, and shipping your products. The fees are generally categorized into:

  • Fulfillment Fees: These are charged per unit and cover the cost of picking, packing, and shipping. For standard-size items, the fee is approximately $2.50 to $5.00 per unit. For oversized items, the fee is higher, ranging from $8.00 to $10.00 per unit.

  • Storage Fees: Amazon also charges for storing your inventory in their warehouse. Monthly storage fees are approximately $0.75 per cubic foot for standard-size items and $2.40 per cubic foot for oversized items.

Additional Fees

Besides the above-mentioned fees, there are a few other charges that may apply:

  • High-Volume Listing Fee: For sellers with a large number of listings, Amazon may charge a fee to maintain those listings.

  • Refund Administration Fee: When a customer returns a product, Amazon retains 20% of the referral fee as a refund administration fee.

Comparison of Selling Plans

To help you understand which selling plan might be best for you, here is a simplified comparison:

FeatureIndividual PlanProfessional Plan
Monthly Subscription Fee$0$39.99
Per-Item Fee$0.99$0
Referral FeeVaries by categoryVaries by category
FBA Fulfillment FeeVaries by sizeVaries by size
Storage FeeVaries by sizeVaries by size

Summary

Selling on Amazon involves several types of fees, including selling plan fees, referral fees, fulfillment fees, and storage fees. The costs can vary significantly depending on your selling plan, the product category, and whether you use Amazon's FBA service. By understanding these fees, you can better calculate your profit margins and make strategic decisions to optimize your Amazon selling experience.

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