Cost to Sell on Amazon Calculator

Selling on Amazon can be a lucrative opportunity for many businesses, but understanding the costs involved is crucial to making informed decisions. Amazon charges a variety of fees depending on the type of seller account, the category of the product, and the services utilized. Here, we'll break down the key costs and explain how to use an Amazon cost calculator to estimate your expenses.

Types of Amazon Seller Accounts

Amazon offers two types of seller accounts: Individual and Professional. The Individual plan is designed for those who sell fewer than 40 items per month, and it charges a per-item fee of $0.99 plus other selling fees. The Professional plan, on the other hand, costs $39.99 per month but does not include per-item fees, making it ideal for higher-volume sellers.

Referral Fees

Referral fees are a percentage of the total sales price and vary by category. For example, electronics might have a referral fee of 8%, while beauty products might be 15%. This fee is taken from the sale amount before any other deductions, and it’s important to know this percentage for your specific product category.

Fulfillment Fees

Amazon offers two fulfillment methods: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).

• FBA charges fees based on the size and weight of the product, as well as storage time. These fees cover picking, packing, and shipping your products.
• FBM allows you to handle your own shipping, so you only pay Amazon’s referral fees and any optional advertising costs.

Closing Fees

Certain products, like media items (books, DVDs, etc.), incur an additional closing fee of $1.80 per item. This fee is on top of referral fees and applies to each unit sold.

Amazon Cost Calculator

To estimate your costs, you can use Amazon’s Seller Central tools or third-party calculators. These calculators typically require you to input the product’s price, category, dimensions, and weight. They will then estimate the fees you’ll need to pay for that item. Here's an example:

Product	Price	Referral Fee	Fulfillment Fee	Closing Fee	Total Cost
Example Item	$100.00	15% ($15.00)	$3.00	$1.80	$19.80

Other Costs

Advertising: Amazon offers various advertising options like Sponsored Products, which can increase visibility but add to your overall costs. Storage fees: If you use FBA, storage fees will apply, especially for long-term storage.

Break-even Point

Understanding all these costs is crucial for determining your break-even point. If you sell an item for $100 and your total Amazon fees are $19.80, you need to ensure your product cost is below $80.20 to make a profit.

Conclusion

Using an Amazon cost calculator helps you avoid unexpected fees and price your products competitively. By understanding all associated costs, you can maximize your profits and successfully grow your Amazon business.