How Much Does Amazon Charge to Sell on Their Site?

1. Referral Fees: Amazon charges a referral fee for each item sold. This fee is a percentage of the item's total selling price, including the item price, shipping cost, and any other fees. The referral fee percentage varies by product category. For instance:

• Electronics: 8%
• Clothing and Accessories: 17%
• Books: 15%

2. Subscription Fees: Amazon offers two types of selling plans: Individual and Professional.

• Individual Plan: No monthly subscription fee. Instead, sellers pay a per-item fee of $0.99 for each item sold.
• Professional Plan: Costs $39.99 per month. This plan does not incur the $0.99 per-item fee, which can be advantageous for high-volume sellers.

3. Closing Fees: For media items such as books, DVDs, and music, Amazon charges a closing fee of $1.80 per item. This fee is in addition to the referral fee and applies to both the Individual and Professional plans.

4. Fulfillment Fees: If you choose Amazon’s Fulfillment by Amazon (FBA) service, there are additional fees for storage and fulfillment.

• Fulfillment Fees: These cover picking, packing, and shipping your products. Fees are based on the size and weight of the items. For example:
  • Standard size items: $2.50 per unit (up to 1 lb), with an additional charge of $0.15 per pound for each pound over the first.
  • Oversize items: $8.26 per unit (up to 2 lb), with additional charges for heavier items.
• Storage Fees: Charged monthly for the space your inventory occupies in Amazon’s warehouse. The fees are:
  • $0.75 per cubic foot for standard-size items from January to September.
  • $2.40 per cubic foot for standard-size items from October to December.
  • $0.48 per cubic foot for oversize items year-round.

5. High-Volume Listing Fees: Sellers with more than 2 million active listings may incur additional fees for maintaining these listings. The specifics of these fees vary and are often negotiated with Amazon.

6. Refund Administration Fees: If a customer returns an item, Amazon refunds the referral fee to the seller but retains a portion as a refund administration fee. This fee is calculated as a percentage of the referral fee and varies by category.

Here’s a simplified summary in a table format:

Conclusion: Understanding Amazon’s fee structure is crucial for managing costs and maximizing profits. Sellers need to carefully evaluate these fees in relation to their products and sales volume to make informed decisions.