Amazon Seller Fees are the charges that Amazon imposes on sellers to use its platform to sell their products. There are several different fees that sellers may be subject to, depending on the type of products they sell, the sales volume they achieve, and other factors.
One of the most important Amazon Seller Fees is the referral fee, a percentage of the total sales price of a product that Amazon charges to cover the cost of its platform and other services. Depending on the product category, this fee can range from 8% to 45% of the sales price. For example, the referral fee for electronics is generally lower than the referral fee for clothing and shoes. Additionally, Amazon also has a per-item fee for those products that are below $10.
Another important Amazon Seller Fee is the fulfillment fee charged for using Amazon’s fulfillment services. This fee is based on the weight and dimensions of the products and the shipping method used. Sellers who use Amazon’s fulfillment services can take advantage of its extensive network of warehouses and distribution centers to get their products to customers quickly and efficiently. However, for sellers who choose to fulfill orders themselves, this fee will not apply.
Another fee Amazon sellers may encounter is the monthly subscription fee, which is charged for sellers who opt to sell on the platform using a professional account. This fee is a flat $39.99 per month, which gives sellers access to features such as detailed sales reports, more product categories, and the ability to sell products in bulk. The fee will be waived for those who sell less than 40 items per month.
In addition to the abovementioned fees, Amazon charges other fees, such as long-term storage and removal order fees. Long-term storage fees are charged to sellers whose inventory has been stored in Amazon’s warehouses for over six months. Removal order fees are incurred when sellers remove items from Amazon’s warehouses.
Sellers should be aware that Amazon also charges additional fees for certain services, such as multi-channel fulfillment, which allows sellers to fulfill orders from other sales channels using Amazon’s fulfillment network. These additional services may include an additional referral fee, fulfillment fee, or other charges.
Amazon Seller Fees can be complex and varied. It’s important for sellers to understand the different types of fees they may be subject to and how they are calculated so they can accurately budget for them and make informed decisions about their use of the platform.
It is also important to note that while Amazon’s fees can add up and can seem high, the benefits of selling on the platform far outweigh the cost. Amazon’s vast reach and the marketplace are great ways for sellers to increase their customer base and reach a wider audience without needing a large up-front investment. It also provides a lot of tools for the sellers, such as analytics and marketing, to boost their sales, which is why many sellers see Amazon as a viable and profitable channel for their ecommerce business. Here we have a complete list of the exact fee structures how sellers and merchants on amazon pay fees and what Amazon fees are encountered:
Professional Selling Plan fee
Amazon charges a monthly subscription fee of $39.99 for the Professional Selling Plan, which allows sellers to list and sell an unlimited number of products on the platform.
Amazon charges a referral fee for each item sold, a percentage of the total sale price. The referral fee varies by category and can range from 6% to 45% of the sale price.
Amazon charges a closing fee for each media item sold, such as books, DVDs, and CDs. The closing fee is $1.80 for items priced under $100 and $3.50 for items priced at $100 or more.
Long-term storage fees
Amazon charges long-term storage fees for sellers who store their inventory in Amazon’s fulfillment centers for more than 365 days. The fee is $6.90 per cubic foot per year for standard-size items and $0.15 per unit per month for oversize items.
High-volume listing fee
Amazon charges a high-volume listing fee of $0.005 per item per month for sellers who list more than 50,000 items per month.
Order handling and packing fees
Amazon charges a fee for handling and packing items fulfilled by Amazon. The fee varies based on the item size and weight, in addition to the fulfillment fee Amazon charges.
Weight handling fee
Amazon charges a weight handling fee for items that require additional handling, such as large, heavy, or fragile items.
Removal order fee
Amazon charges a fee for sellers to have inventory removed from their fulfillment centers, which can include disposing of unsold items or returning them to the seller.
Reimbursement for lost or damaged inventory
Amazon may charge sellers for lost or damaged inventory held in fulfillment centers.
Return processing fee
Amazon charges sellers a return processing fee for items returned by customers and processed at Amazon’s fulfillment centers.
Long-term storage fee for media items
Amazon charges a long-term storage fee for sellers who store their media items, such as books, CDs, and DVDs, in Amazon’s fulfillment centers for more than 365 days. The fee is $6.90 per cubic foot per year.
Inventory placement service fee
Amazon charges a fee for its inventory placement service, which allows sellers to store their inventory at Amazon’s fulfillment centers. The fee is $0.15 per unit per month.
Unplanned service fee
Amazon charges sellers a fee for unplanned services, such as removing items from the fulfillment centers that are in violation of Amazon’s policies or disposing of unsold items.
Amazon charges a transportation fee for sellers who use Amazon’s transportation services to transport their inventory to fulfillment centers.
Amazon may charge sellers a restocking fee for items returned by customers. The fee is usually 20% of the item’s sale price.
Amazon tax collection
Amazon may collect taxes on behalf of sellers depending on the laws and regulations of the state where the sellers are selling from, based on the applicable state and local sales tax.
Amazon Brand Registry fee
Amazon charges an annual fee of $399 for enrolling a brand in the Amazon Brand Registry program. This allows brands to take advantage of additional tools to protect their intellectual property and improve their product listings on the site.
Fees that only FBA sellers pay
Fulfillment by Amazon (FBA) is a service offered by Amazon that allows sellers to store their inventory at Amazon’s fulfillment centers and have Amazon handle the shipping and customer service for their orders. While using FBA can save sellers time and resources, it also comes with additional fees that they must pay.
One of the main fees FBA sellers pay is the fulfillment fee. This fee is charged for each item fulfilled by Amazon and includes the cost of picking, packing, and shipping, as well as customer service and returns processing. The fulfillment fee varies based on the item size and weight, with larger and heavier items incurring a higher fee. Some items, such as jewelry and watches, also have an additional handling fee.
Another fee FBA sellers pay the storage fee. Amazon charges FBA sellers for storing their inventory at the fulfillment centers, with the fee being based on the amount of space the items take up and the length of time they are stored. The storage fee increases during the peak holiday season, with the increased fee for items stored in fulfillment centers from October through December.
Another fee that only FBA sellers have to pay is the removal order fee. If a seller wants to have their unsold items removed from the fulfillment centers, Amazon charges a removal order fee. If the items are unsellable, Amazon may also charge a disposal fee to dispose of the items. Sometimes, the fee may be waived if the sellers have many products or arrange a special pickup of their items.
FBA sellers may also be charged for reimbursement for lost or damaged inventory. If items are lost or damaged while being held in the fulfillment centers, Amazon may charge the seller for the cost of the items.
The return processing fee also only applies to FBA sellers. When customers return items fulfilled by Amazon, the sellers have to pay a return processing fee. The fee varies based on the item size and weight.
Another fee specific to FBA sellers is the Long-term storage fee for media items. Amazon charges a long-term storage fee for sellers who store their media items, such as books, CDs, and DVDs, in Amazon’s fulfillment centers for more than 365 days. The fee is $6.90 per cubic foot per year.
In summary, Fulfillment by Amazon comes with additional fees that sellers must pay to use the service, such as fulfillment fees, storage fees, removal order fees, reimbursement fees for lost or damaged items, return processing fees, long-term storage fees for media items, etc. While these fees may seem like a lot, the benefits of using FBA, such as saving time and resources on shipping and customer service, can outweigh the costs for many sellers. Sellers need to understand and factor these costs into their business plan to make informed decisions while selling on Amazon.
Fees that only FBM sellers pay
Fulfillment by Merchant (FBM) is a service offered by Amazon in which sellers handle the shipping, handling, and customer service for their orders. While FBM sellers have more control over their inventory and operations, it also comes with additional fees that they must pay.
One of the main fees FBM sellers pay is the shipping fee. As they handle their shipping, they need to pay for shipping the items to the customers. This includes the cost of the packaging materials, postage, and any other shipping-related expenses. The shipping cost can vary widely depending on the size, weight, and destination of the item and the method of shipping used.
Another fee that only FBM sellers have to pay is the handling fee. As FBM sellers handle their inventory and packaging, they are responsible for the costs of preparing their items for shipment. This may include costs for materials such as boxes, tape, and bubble wrap and any labor costs for packaging the items.
FBM sellers also have to pay for any returns that happen. When customers return items that the merchant fulfilled, the sellers have to pay for the shipping cost to return the item to them and may also have to reimburse the customer for the return shipping. In some cases, the customer may choose to return the item to the seller’s warehouse, in which case the seller would have to cover the cost of the reverse logistics.
Another fee that is specific to FBM sellers is the inventory storage fee. As FBM sellers handle their inventory, they are responsible for the cost of storing it. This may include the cost of renting a warehouse or storage unit and any labor costs associated with moving and storing the items.
FBM sellers also need to pay for customer service-related costs. They are responsible for answering customer inquiries and providing customer support for their products, which can include expenses such as phone and email support and additional resources such as customer service software.
In conclusion, Amazon offers a great opportunity for sellers to reach a large customer base and grow their business. Still, it also comes with various fees that sellers must pay. By understanding and budgeting for these fees, sellers can ensure that they can stay competitive and profitable on the platform. FBA and FBM sellers have different fees, and it’s important for sellers to understand and factor in the costs when deciding which service to use.
Sellers need to understand the fees that apply to their specific business and pricing strategy and factor in these costs when determining their pricing and operations. This helps ensure that they stay competitive and profitable on the Amazon platform.
On the other hand, Fulfillment by Merchant (FBM) sellers handle their shipping, handling, and customer service and will have to pay for additional fees such as shipping costs, handling costs, return costs, inventory storage costs, and customer service-related expenses.