Starting up an Amazon storefront has to be easy, right? You have to sign up and start selling your product simply… However, the reality is that selling on Amazon is not quite that simple or affordable. Amazon is booming; everyone wants to be part of it. Consequently, it would be best to consider many time and financial expenses.
New 5% Fuel and Inflation Surcharge Effective April 28, 2022
Effective April 28, Amazon will charge an average of 24 cents more per unit it stores and ships through FBA. The surcharge is not permanent, and Amazon has only announced this in its biggest market, the United States. FBA sellers can avoid the higher cost by shipping to customers directly. Many rely on FBA for eligibility in Amazon Prime.
Here, we’ll cover the necessary cost information to sell on Amazon. Keep in mind that some Amazon investments covered will be averages and predictions.
Selling on Amazon entails a bunch of seller fees. Amazon offers two selling plans for Individuals and Professionals.
The Professional selling plan costs $39.99/month plus a per-item referral fee that varies by category. If you sell more than 40 units a month, advertise your products, and qualify for top placement on product detail pages and advanced selling tools, like APIs and reports. If you want to sell products in restricted categories, consider using the Professional Plan.
The Individual selling plan costs $0.99/unit plus a per-item referral fee that varies by category. If you’re going to sell less than 40 items a month, are still deciding what to sell, and don’t plan to advertise or use advanced selling tools, the Individual plan may be the best option for you.
When you start selling on Amazon, remember they charge a referral fee for each item sold. It’s important to note that most referral fees range between 8% and 15%, depending on the product category.
|Top Categories||Referral fee percentage||Referral fee minimum|
|Amazon Device Accessories||45%||$0.30|
|Beauty||· 8% for products with prices under $10|
· 15% for items with prices over $10
|Books||15% + $1.80 closing fee||–|
|Clothing & Accessories (n/a Shoes, Purses, & Sunglasses)||17%||$0.30|
|Electronics Accessories||· 15% of the total price up to $100|
· 8% of the total price greater than $100
|Fine Art||· 20% of Sales Proceeds up to $100|
· 15% if $100 to $1,000
· 10% if $1,000 to $5,000
· 5% if over $5,000
|Furniture & Décor||· 15% of the total price up to $200|
· 10% of sales price over $200
|Health & Personal Care||· 8% for products with prices under $10|
· 15% for items with sales price over $10
|Jewelry||· 20% of the total sales price under $250|
· 5% of the total sales price over $250
|Major Appliances||· 15% of the total sales price up to $300|
· 8% of the total sales price over $300
|Shoes, Handbags, & Sunglasses||· 18% if the total sales price is under $75|
· 15% if the total sales price is over $75
|Toys & Games||15%||$0.30|
Amazon Fulfillment costs are associated with shipping your orders and depend on whether you fulfill your orders or use FBA (Fulfillment by Amazon). As a seller, you must determine whether your item is an apparel or a non-apparel product. Secondly, select the product size tier, whether standard or oversized. Then, once you know the product’s category and size tier, you can calculate the shipping weight and use the tables found here to determine which fee will apply.
Another great tool to have handy is the Fulfillment by Amazon Revenue Calculator. This will help you determine what route to take when selling on Amazon. Does it make more sense for you to do FBA or fulfill your shipments?
Amazon Seller Storage Costs
Inventory storage fee charges also occur monthly. These are based on the daily average volume (measured in cubic feet) for the space your inventory occupies in Amazon warehouses. This fee is the volume measurement based on unit size when properly packaged and ready to ship.
How do you get paid by Amazon?
When your Amazon Seller Account is settled, and you have a positive balance, Amazon sends the money to your bank account using an ACH (Automated Clearing House) or electronic funds transfer. After Amazon initiates a payment, it can take up to five business days for the funds to appear in your bank account.
Before Amazon pays you, you must add a valid bank account as the deposit method within your seller account settings. Amazon cannot make payments to a credit card or online payment system like PayPal.
How can Refund Retriever help reduce Amazon Seller Fees?
In addition to FedEx and UPS refunds, Refund Retriever offers a solution to all your FBA reimbursement needs. We manually check the entire inventory lifecycle to ensure all inventory is available for sale. You’re already paying Amazon enough to sell your products. Now, receive reimbursements for all improperly received or miscounted items, refunds issued (by Amazon) when the customer never returned the item, and failure to give the 20% restocking fee. All of this without having to do a thing on your end! Learn more about our Amazon FBA service.