How Much Does It Cost to Sell Used Items on Amazon?

Selling used items on Amazon can be a profitable way to make money from things you no longer need. However, understanding the costs associated with selling on Amazon is crucial to maximizing your profit margins. In this article, we will break down the various costs you may incur when selling used items on Amazon, so you can make an informed decision.

1. Amazon Seller Account Types

Amazon offers two types of seller accounts: Individual and Professional. The type of account you choose will significantly impact your selling costs.

• Individual Seller Account: This account is suitable for sellers who plan to sell fewer than 40 items per month. It has no monthly subscription fee, but Amazon charges a $0.99 fee per item sold. This is in addition to other selling fees, which we will discuss later.

• Professional Seller Account: If you plan to sell more than 40 items per month, the Professional Seller account is more cost-effective. It costs $39.99 per month, but you won’t have to pay the $0.99 per-item fee. This account also gives you access to additional selling tools and reports, which can help streamline your selling process.

2. Referral Fees

Regardless of the type of account you have, Amazon charges a referral fee for each item sold. The referral fee is a percentage of the total sale price, including the item price and any shipping or gift-wrapping charges. The percentage varies by category, typically ranging from 6% to 45%, with the average being around 15%. Here are a few examples:

Category	Referral Fee
Books	15%
Electronics	8%
Clothing and Accessories	17%

3. Closing Fees

For some categories, Amazon charges a closing fee in addition to the referral fee. This is particularly relevant for media categories such as books, DVDs, music, and video games. The closing fee is a flat $1.80 per item sold.

4. Fulfillment Fees

Amazon offers two main fulfillment options:

• Fulfillment by Amazon (FBA): If you choose FBA, Amazon will handle storage, packaging, and shipping of your items. The cost varies depending on the size and weight of your items, as well as the storage duration. For example, standard-sized items (weighing up to 1 lb) have a fulfillment fee starting at $3.22 per unit. Additionally, there are monthly storage fees, typically $0.87 per cubic foot from January to September and $2.40 per cubic foot from October to December.

• Fulfillment by Merchant (FBM): If you handle fulfillment yourself, you avoid FBA fees but are responsible for shipping costs and logistics. This option is generally more cost-effective for small-scale sellers or those selling large or heavy items.

5. Other Costs

• Shipping Costs: If you use FBM, you’ll need to account for shipping costs. These can vary widely depending on the size and weight of the item, as well as the shipping method.

• Return and Refund Costs: If a customer returns an item, Amazon will refund the customer on your behalf, but you will be responsible for the return shipping costs and any restocking fees. If you use FBA, there may be additional return processing fees.

• Storage Fees: If you use FBA, be mindful of long-term storage fees. Amazon charges additional fees for items stored for more than 365 days, which can add up quickly.

• Advertising Costs: To increase your product visibility, you might want to invest in Amazon’s advertising services. The cost varies depending on your budget and the competition for keywords in your category.

6. How to Minimize Costs

To maximize your profits, consider the following tips:

• Choose the Right Account Type: Assess your selling volume to decide between an Individual and Professional account.

• Optimize Fulfillment: Weigh the pros and cons of FBA and FBM. If you have low-cost, lightweight items, FBA might be the better option. For heavier items, FBM might be more cost-effective.

• Monitor Storage Fees: Avoid long-term storage fees by keeping track of inventory turnover and adjusting your stock levels accordingly.

• Leverage Promotions and Discounts: Participate in Amazon promotions or offer discounts to increase sales volume, which can help offset some of the costs.

In conclusion, selling used items on Amazon involves a variety of costs, from account fees to referral and fulfillment fees. By understanding these costs and planning accordingly, you can maximize your profits and make the most of your Amazon selling experience.