Amazon Selling Fees: What You Need to Know

Amazon charges various fees for selling on their platform, which can vary depending on the type of product and selling plan you choose. Here's a detailed overview of the fees associated with selling on Amazon and how they can impact your business.

When you decide to sell on Amazon, there are several key fees you should be aware of:

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

• Individual Plan: This plan does not have a monthly subscription fee but incurs a $0.99 fee per item sold. This plan is ideal for those who sell fewer than 40 items per month.
• Professional Plan: This plan requires a monthly subscription fee of $39.99. It’s best for sellers who plan to sell more than 40 items per month and want access to advanced selling tools.

2. Referral Fees: Referral fees are a percentage of the total selling price, including the item price and any shipping costs. The percentage varies depending on the product category:

• Books, Music, DVDs, and Video Games: 15%
• Electronics: 8% on items priced up to $100, 15% on items priced above $100
• Clothing, Shoes, and Jewelry: 17%
• Home & Garden: 15%

3. Closing Fees: For media products like books, music, and videos, there is an additional closing fee. This fee is $1.80 per item sold.

4. FBA Fees: If you use Amazon’s Fulfillment by Amazon (FBA) service, additional fees apply. These include:

• Fulfillment Fees: Charged per unit and depend on the size and weight of the product. For example, standard-size items incur a fee of $2.50 per unit, while oversized items have a fee of $3.31 to $75.78 per unit, depending on size.
• Storage Fees: Charged monthly based on the amount of space your inventory occupies in Amazon's warehouse. The standard storage fee is $0.75 per cubic foot from January to September and $2.40 per cubic foot from October to December.

5. Other Fees:

• High-Volume Listing Fee: If you have more than 2 million listings, Amazon charges a fee of $0.05 per listing per month.
• Refund Administration Fee: If you issue a refund to a customer, Amazon retains the referral fee and charges a refund administration fee of $5.00 or 20% of the refunded amount, whichever is less.

Comparison of Fees:

Fee Type	Individual Plan	Professional Plan	FBA Fees	Closing Fees	Storage Fees (Standard)
Subscription Fee	$0.99/item	$39.99/month	$2.50 - $75.78/unit	$1.80/item	$0.75/cubic foot (Jan-Sep)
Referral Fee	8%-17%	8%-17%			$2.40/cubic foot (Oct-Dec)

In summary, selling on Amazon involves a variety of fees that can impact your profitability. The subscription fee is a fixed cost, while referral fees and FBA fees are variable, depending on your sales volume and product category. Choosing the right selling plan and understanding all applicable fees are crucial for managing your business effectively on Amazon.