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When you decide to embark on the journey of selling on Amazon, one of the first questions to come to mind is undoubtedly about the cost. But fret not! This guide will take you through every cost you need to be aware of as a seller on Amazon in 2023.
Costs Types of Selling on Amazon
1. Monthly Subscription Fee
Every Amazon Professional Seller is required to pay a monthly subscription fee. This grants you access to Amazon’s vast marketplace and offers you a plethora of tools to track sales and communicate with buyers.
- Monthly subscription fee: $39.99
2. Per-item Fees
Individual sellers, unlike professional sellers, don’t pay a monthly subscription but are charged a fee per item sold. This might be suitable for those who sell less frequently.
- Per-item fee: $0.99 per item sold
3. Shipping Fees
If you opt for the “Fulfilled by Merchant (FBM)” method, you’ll have to bear the shipping costs. These can vary depending on the item’s size, weight, and destination.
4. Variable Closing Fees
These fees apply primarily to media items like books, DVDs, music, etc. The amount is based on the category of the product and its shipping method.
5. Referral Fee Types and Costs
Amazon charges a referral fee on each item sold. This fee is a percentage of the total sale price, and the exact amount can vary depending on the product category.
|CATEGORIES||REFERRAL FEE PERCENTAGE||MINIMUM REFERRAL FEE|
|Amazon device accessories||45%||$0.30|
|Baby products (excl. apparel)||8% on items that are $10.00 or less and 15%||$0.30|
|Camera and photo||8%||$0.30|
|Cell phone devices||8%||$0.30|
|Electronics accessories||15% on the first $100 of the price and 8% thereafter||$0.30|
|Furniture and decor||15%||$0.30|
|Home and garden (incl. pet supplies)||15%||$0.30|
|Major appliances||15% on the first $300 of the price and 8% thereafter||$0.30|
|Software and computer/video games||15%||N/A|
|Sports (excl. collectables)||15%||$0.30|
|Tools and home improvement||15%, except 12% for base equipment power tools||$0.30|
|Toys and games||15%||$0.30|
|Unlocked cell phones||8%||$0.30|
|Video and DVD||15%||N/A|
|Video game consoles||8%||N/A|
|3-D printed products||12%||N/A|
|Automotive and powersports||12%, except 10% for tires and wheels products||$0.30|
|Clothing and accessories||17%||$0.30|
|Grocery and gourmet food||15%, or 8% for items priced $15 or less||N/A|
|Health and personal care (incl. personal care appliances||15%||$0.30|
|Industrial and scientific||12%||$0.30|
|Jewelry||20% on the first $250 of the price and 5% thereafter||$0.30|
|Luggage and travel accessories||15%||$0.30|
|Shoes, handbags and sunglasses||15%, or 18% on items priced above $75||$0.30|
Additional Costs to Consider
Fee Refund on Returns
When a customer returns a product, Amazon refunds the referral fee you paid, but they charge a return processing fee. This ensures Amazon covers its costs associated with handling and processing the return.
Order Fulfillment Fees
Amazon’s Fulfillment by Amazon (FBA) program handles storage, packing, and shipping of products for sellers. Depending on the size of your products, you’ll be charged as follows:
a. Standard Size
Products that fit within specific dimensions and weight are termed “standard size”. The fee depends on the weight and time of year, but typically:
- January – September: $2.50 per unit
- October – December: $3.31 per unit (due to the holiday rush)
Products exceeding standard size dimensions are categorized as “oversize”. The fees are:
- January – September: $8.26 per unit
- October – December: $9.79 per unit
When a product is sold, Amazon grants you a shipping credit, which is meant to offset your shipping costs. The exact amount depends on the category and shipping method chosen by the buyer.
Fulfilled by Merchant Fees (FBM)
If you choose FBM, you’re responsible for storage, packing, and shipping. While you save on FBA fees, you’ll need to manage the logistics, which comes with its own set of costs.
Why Choose an All-In-One AI Platform like Eva?
In today’s dynamic e-commerce environment, efficiency is key. This is where platforms like Eva come in.
- Automation: With Eva, repetitive tasks like price adjustments and inventory management are automated, ensuring you spend time where it matters most.
- Data-Supported AI: Eva’s algorithms analyze vast amounts of data to provide insights and recommendations. This data-driven approach ensures you stay ahead of the competition.
- Expert Knowledge: Eva is built upon the foundation of expert knowledge. From market trends to effective selling strategies, Eva guides you every step of the way.
Understanding the cost to sell on Amazon in 2023 is essential for budgeting and strategizing. While there are multiple fees to consider, with the right tools like Eva, you can navigate the landscape efficiently and maximize your profits.