Starting up an Amazon storefront has to be easy, right? You just have to simply sign up and start selling your product… 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, there are many time and financial expenses you need to keep in mind.
Here, we’re going to cover the necessary cost information you need to sell on Amazon. Keep in mind, 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 are going to sell more than 40 units a month, advertise your products, qualify for top placement on product detail pages, advanced selling tools, like APIs and reports, and if you want to sell products in restricted categories, you should consider using the Professional Plan.
The Individual selling plan costs $0.99/unit sold plus a per-item referral fee that also varies by category. If you’re going to sell less than 40 items a month, still deciding what to sell, and you 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, keep in mind that they charge a referral fee for each item sold. It’s important to note, 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 price under $10|
· 15% for items with price 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 price under $10|
· 15% for items sales price over $10
|Jewelry||· 20% 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 total sales price under $75|
· 15% if total sales price over $75
|Toys & Games||15%||$0.30|
Amazon Fulfillment costs are associated with shipping your orders and depends on whether you fulfill your own orders or use FBA (Fulfillment by Amazon). As a seller, you must first determine whether your item is apparel or non-apparel product. Secondly, determine the product size tier whether it be 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 own shipments?
Amazon Seller Storage Costs
Inventory storage fees 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 is 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. It can take up to five business days for the funds to appear in your bank account after Amazon initiates a payment.
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, such as PayPal.
How can Refund Retriever help reduce Amazon Seller Fees?
In addition to FedEx and UPS refunds, Refund Retriever now 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 issue the 20% restocking fee. All of this without having to do a thing on your end!. Learn more about our Amazon FBA service.