Amazon Seller Fees 2022 The Cost of Selling on Amazon
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Amazon Seller Fees 2022 The Cost of Selling on Amazon
When you total up all of the different fees that you have to pay, you quickly realize that selling on Amazon is not an inexpensive endeavor. The costs associated with selling on the marketplace are typically outweighed by the benefits of doing so, which include access to the marketplace's 310 active customers located in 190 countries across the world. Let's take a look at the Amazon seller fees that you might anticipate paying in 2022 if you want to sell your products on the widely used marketplace.
1. Monthly or Annual Costs (Monthly)
When you first sign up for a seller account with Amazon, you will be subject to the first of several fees associated with becoming an Amazon seller. You will have the choice to sign up for either a personal or a business account, and the decision you make will have a significant impact further down the line.
What percentage does Amazon take from the sales made by sellers?
A monthly fee of $39.99 is required to use the professional seller account on Amazon.
Amazon Seller Fees 2022 The Cost of Selling on Amazon
The following advantages are included in the cost of this service:
When products are sold, there is not a fee assessed on a per-item basis.
Control of inventory via data feeds, spreadsheet, and report generation.
Management of orders that includes reports and feeds.
The capability of utilizing Amazon Marketplace Web Service in order to carry out API operations (e.g. uploading feeds, receiving reports, etc.).
You have the ability to determine your own shipping costs if you offer products in the categories of Books, Music, Videos, and DVDs (BMVD).
The ability to conduct unique listing features, such as promotions and gift services, whilst the listing is being displayed.
Qualifications needed to take home the Buy Box
The capacity to compute US sales and to incorporate applicable taxes into individual orders.
Amazon Seller Fees 2022 The Cost of Selling on Amazon
The capability to upload a large number of products at once.
The capacity to offer complimentary gift wrapping on things purchased.
However, if you sell fewer than 40 products each month, upgrading to the professional seller plan is probably not the best use of your money. This is due to the fact that the individual seller plan, which is free, imposes a cost of \$0.99 on each item that is sold; hence, you may end up paying more for your subscription plan than you would have paid for fees associated with things sold. Listed below are some more characteristics that set apart the individual account:
Amazon Seller Fees 2022 The Cost of Selling on Amazon
There is no charge for a monthly subscription; rather, merchants pay a flat rate of $0.99 for each item that is sold.
Amazon determines the shipping charges for all of their products.
There is no capacity to offer gift wrapping services.
Instead of being uploaded in bulk, listings are done so manually.
exclusion from sales in many categories, including jewelry, footwear, purses, handbags, handcrafted art, cuisine, luggage, and more.
2. Fees for Transactions
The second category of fees you'll run into is one that has to do with the things that are being sold, so let's get into the specific sub-types of this category.
Referral Fees
Consider this charge to be the commission that you owe Amazon each time you sell a goods through their online marketplace. The referral fee is often calculated as a set rate (about 15%, give or take a little amount), however this percentage may shift based on the category in which the item was sold.
For instance, if you offer products in the categories of Extended Warranties, Protection Plans, and Service Contracts, you can anticipate a referral fee of a stunning 96% of your total sales. Amazon Device Accessories stands out as the category with the highest referral fee, at 45%, compared to the other categories, which have referral fees that are significantly lower.
Amazon Seller Fees 2022 The Cost of Selling on Amazon
To keep things interesting, the majority of categories have a minimum referral fee that is applicable, which means that you will be charged $0.30 even if the referral fee % is lower than that minimum. There are a few cases in which a minimum referral fee is not required, and these include the sale of books, collectible books, entertainment collectibles, fine art, gift cards, grocery and gourmet food, music, and extended warranties, protection plans, and service contracts. These are the only cases in which a minimum referral fee is required.
And then, just to make things even more fascinating, different categories have varying schedules of referral payments, where the fee percentages are calculated depending on sales in dollars. [Citation needed] For example, Sports Collectibles levies a referral fee of 20% if the total sales price of the items sold is less than $100; this fee is cut in half to 10% if the total sales price of the items sold is between $100 and $1,000; and it is cut even further to 6% if you are successful in selling items for more than $1,000. When it comes to referral payments, this model accounts for approximately fifty percent or so of Amazon's product categories.
Amazon Seller Fees 2022 The Cost of Selling on Amazon
Various Closing Costs That May Apply
If you chance to sell something in the media category (BMVD, software, computer games, video games, video game consoles, etc.), then you will need to whip out your wallet to pay the additional $1.80 variable closing fee.
Fees for the Handling and Administration of Refunds
Let's say you just finished a sale on some gizmos and received payment for them, but the buyer, Bob, changed his mind about keeping the gizmo and decided to send it back to you. What would you do? In the event that this occurs, the money and referral fee that you paid will be repaid to you; however, you will be required to pay an applicable refund administrative charge in exchange for the refund. This is either five dollars ($5.00) or twenty percent of the referral fee that is applicable, whichever is less.
3. Fees for Using the FBA
There are three distinct types of FBA fees, and each one is determined by the stage of the fulfillment process that the order is currently in.
The dimensions and quantity of the item are factored into the calculation of the order fulfillment fee. The fees associated with large and heavy products are the greatest, while the fees associated with tiny and light products are the lowest. If your item weighs 10 ounces or less, you're in luck because the lowest possible price for shipping it is merely $2.41. This puts you at the cheapest end of the scale. On the opposite side of the spectrum, there is a tax for huge oversize products that weigh 151 pounds or less.
This fee is $75.78 in addition to $0.79 per pound for anything that weighs more than 90 pounds.
Amazon requires you to pay a monthly storage fee in order to use their warehouses to store your products rather than requiring you to store them on your own as you would have to do otherwise. This price varies throughout the year, with a rate of $0.69 per cubic foot applicable from January to September and a rate of $2.40 per cubic foot applicable from October to December.
Amazon Seller Fees 2022 The Cost of Selling on Amazon
The storage charge, on the other hand, will be reduced to $0.48 per cubic foot from the standard rate of $1.20 per cubic foot if you are storing big items.
Be prepared to have long-term storage costs added to your bill if you have the unfortunate luck of not being able to swiftly sell products that are housed at an Amazon fulfillment center. When an item has been stored in the warehouse for more than six months or more than twelve months, the owner is required to pay this cost. This price is computed twice a year, on the 15th of February and the 15th of August.
Related: How to Get Around Amazon's Extra Charges for Long-Term Storage
With Amazon's FBA charge calculator, you may get an approximation of the fees associated with selling your own products through FBA.
4. Charges Related to FBM
There are additional fees associated with FBM, which stands for "Fulfilled by Merchant." These fees are considerably different from the ones that are imposed to sellers who choose to have their products fulfilled by FBA. They are decreased due to the fact that Amazon acknowledges the seller is responsible for delivery costs, but they are not completely eliminated.
FBM sellers who use the individual selling plan are required to use the shipping rates established by Amazon. This is the case even in the event that the shipment credit amounts to less than the entire shipping cost. If this describes your situation, it is imperative that you price and reprice your things with extreme attention and determination in order to avoid being crushed by Amazon's prices.
Amazon Seller Fees 2022 The Cost of Selling on Amazon
On the other hand, if you are selling through FBM and utilizing the Professional selling plan, you have a lot more leeway in terms of flexibility because you get to choose the shipping rates that you use. There is one circumstance in which this rule does not apply, and that is if you are selling in BMVD. If this is the case, Amazon will issue you a shipping credit equal to the cost of postage, which varies according to the method of shipment chosen (e.g., domestic standard, domestic expedited, domestic two-day, international standard, and international expedited).
5. Various Other Fees and Costs
When you believe you've made it out of the fee woods completely, there are a few extra minor fees to consider before putting things up on Amazon.com.
If you have more than 100,000 products listed, you are subject to the high-volume listing cost, which consists of a monthly flat fee of $0.005 per eligible item and is paid at the same time as your FBA storage fees.
The additional FBA fee for dangerous items (excluding clothing) ranges from $0.06 to $0.16 per unit for standard-sized units.
Amazon Seller Fees 2022 The Cost of Selling on Amazon
This fee is added on top of any other applicable fees. When the products in question are potentially hazardous items, such as clothing, the size-based cost is increased to range from $0.08 to $0.29.
If you rent out textbooks, Amazon will charge you $5.00 for each rental. This fee is collected at the time of sale and applies only if you rent out textbooks.
If you want Amazon to manage the fulfillment of your orders, you'll have to send your products to one of their warehouses and sell through their FBA program. If you want Amazon to use their boxes while mailing out the item, the charge is $0.15 per unit during the months of November and December, and $0.10 during the remaining months of the year. The majority of sellers place their things in boxes.
Amazon Seller Fees 2022 The Cost of Selling on Amazon
Amazon offers what it calls a "category" called "Refurbished," in which it resells previously owned items after giving them a facelift. This is done at no cost to you as a matter of course, but you may be charged a price in the event that something about the product renders it ineligible for refurbishing.
When customers send things back to Amazon, they don't always return them in the same box, and if they do, the box may be damaged or they may use an altogether new box. In the event that this occurs, Amazon will repack the item for you and charge you a price for the service.
The majority of the fulfillment work, such as prepping and labeling your products, is taken care of for you by Amazon when you sign up to sell through the FBA program. This is one of the benefits of becoming an FBA seller. However, the price for this perk ranges from $0.50 to $1.20 for a unit of the regular size, and from $1.00 to $2.20 for units that are larger than the standard size. You can also acquire packing slips that are (custom-made) prepared for you for a price of $0.07 per box if you are a multi-channel fulfillment vendor. Last but not least, you also have the option of paying Amazon a price of $0.30 per unit to affix barcodes to your products while they are being fulfilled by Amazon.
Amazon Seller Fees 2022 The Cost of Selling on Amazon