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The old cliché that, “You need to pay to play” is a reality of carrying on with work for Amazon dealers. There are vender charges to play on quite possibly of the most well known commercial center on the planet. Unfortunately, the clarification of Amazon merchant charges on Amazon Vender Focal may not necessarily in every case be completely clear. This guide expects to assist with explaining the clarification of Amazon FBA and vender expenses.
Amazon dealers should settle on Satisfied by Amazon (FBA) and Satisfied by Shipper (FBM). Every choice accompanies its own advantages and related Amazon Dealer Expenses. To comprehend which one is best for yourself as well as your business, you really want to completely comprehend these charges and what they can mean for your main concern.
Appropriately expecting and dealing with your charges can have the effect in your prosperity as an Amazon vender. It can likewise have the effect between determining your next monetary year, quarter, month, week, or even day. Our main goal here is to give a helpful manual for bookmark for future reference and for you to look into these Amazon vender expenses.
A Referral Fee is standard for anything sold by a third party seller on Amazon. Essentially, it is Amazon’s commission on every sale of your products. So why don’t they call it a “commission”? Well, we don’t know exactly why, but assume it is for Amazon referring you to the customer that buys your product using the Amazon marketplace platform.
Note that the referral fee is per item, not per sale of multiple items.
The percentage of that commission depends on the product category, but can range anywhere from 6-20 percent. In most cases, you can expect around 15 percent. Which might seem like a lot until you consider that a.) you don’t pay unless you sell the product and b.) that you were only able to sell the product thanks to high traffic and exposure you get using Amazon, avoiding the need to pay for and maintain your own website and ecommerce platform.
The fee is assessed to the actual selling price, not the list price. So if you are running a “half-off” promotion on a product that lists for $80, the referral fee is a percentage of $40, not $80.
For certain product categories, there is a minimum referral fee, up to $2.00, depending on the item. The minimum referral fee only comes into play if the percentage of the actual selling price is lower than the minimum.
For media (e.g., books, DVDs, music, video games or gaming consoles), there is an additional $1.80 Variable Closing Fee, also called a Fixed Closing Fee. Note, however, that Amazon’s calculation of this fee is continually subject to change.
Subscription fees depend on whether an Amazon seller is an individual or an Amazon Pro Merchant.
Individual accounts are for those who only sell in small amounts and are restricted to certain categories. Individual accounts cannot:
There are no monthly seller fees; the Subscription Fee is $0.99 per item sold.
Merchant Pro accounts deal in higher volumes and consequently have unlimited product listings and sales, the ability to bulk upload products, inventory management tools and can opt to be Fulfilled by Amazon. As discussed below, FBA has additional fees.
AGift Wrapping Fee applies only if Amazon is doing the gift wrapping. If the merchant is gift wrapping, there is a Gift Wrap Chargeback, essentially a referral fee. Note also that whatever customers may pay for gift wrapping is added to your revenues. In some cases, depending on the local jurisdiction, there may be gift wrap tax assessed.
If the merchant is drop shipping (purchasing a product from a third party that fulfills shipment from its own inventory), there is a fee for any extra listing above the first 100,000 ASIN listings (2 million SKUs in Amazon Europe) without sales in the last 12 months. This is called a High Volume Listing Fee; each listing is charged $0.005 per excess listing; in Amazon Europe a fee of €0.0004 per SKU applies.
A Sales Tax Service Fee, also called a Sales Tax Collection Fee, is charged when Amazon collects sales tax on behalf of the seller, but does not remit it. Amazon sends the tax together with payment and you must remit the taxes Amazon has collected on your behalf to the appropriate authorities.
If you do the shipping, Amazon gives you credit based on its own shipping costs. The credit applied depends on the product. Does the credit always cover actual shipping costs? Sometimes, the answer is: they don’t.
In some cases, there may be a Shipping Tax. If you sell on Amazon USA, shipping tax is either collected or not collected based on state-specific regulations. The seller decides whether to collect sales tax on shipping or not. European sellers remit collected amounts to the appropriate government entity, even if Amazon is doing the shipping.
There is also a Shipping Holdback Fee (also called Shipping HB or ShipingHB). This is another sort of referral fee for shipping completed by the seller. It is not charged to FBA sellers.
One way to be more certain of shipping fees as well as to eliminate the hassle of managing not only shipping but also storage is to sell through FBA. Amazon seller fees for FBA sellers are based on the size and weight of the package. There are additional feed associated with certain items, such as clothing and lithium batteries. The amount of these fees changes constantly.
You are also paying Amazon to warehouse your products. Monthly storage fees are based on:
Standard sized items are charged $0.69/cubic foot from January to September; $2.40/cubic foot from October to December. Oversized items are $0.48/cubic food from January to September; $1.20/cubic foot from October to December. (Note that these charges are always subject to change.)
If an item is in storage for longer than 365 days, Amazon charges a Long Term Storage Fee (LTSF), assessed on the 15th of each month. If your inventory exceeds your storage limits for a given month, you are charged an FBA Inventory Storage Overage Fee, which is assessed even should your inventory levels drop to within your storage limits at some point for that month.
If you export inventories internationally at Multi-Channel Fulfillment, you are charged FBA Export Fees.
While these fees reduce your profitability and make accounting a little more difficult, like it or not there are costs of doing business on Amazon. Not understanding or miscalculating these costs separate the Amazon sellers doing just okay and highly successful Amazon sellers.
Keeping track of every single fee on every single transaction can be quite overwhelming. It can also be difficult to keep track of how all of these fees affect your bottom line, especially during busy seasons. This is where a great profit and loss tool can come into play.
Order management and automated follow up emails to customers are also useful ways to make sure your Amazon business is running smoothly and to maximize customer satisfaction. The FeedbackWhiz Profits and Accounting tool can help track sales data and profits to boost your business, as well as to repair feedback, improve product reviews and automate high-volume emails.
FeedbackWhiz’s Profits and Accounting Tool breaks down all of your Amazon seller fees, costs, and sales into attractive, easy-to-read and understand charts and graphs. By analyzing your most profitable and least profitable products, you can get a better idea of how fees are affecting your profits and make adjustments where necessary to try and lower Amazon seller fees.
Amazon seller fees depend on more than 10 different factors, including the seller’s account type. Individual sellers pay $0.99 for every item sold, while Professional sellers pay $39.99 per month.
Both account types pay a variable closing fee of $1.80 for every media item sold, plus a referral fee percentage, which ranges from 6% to 96%, for every item sold. Additional Amazon seller fees depend on the seller’s order fulfillment and shipping settings.
If you’re looking for a quick-and-easy reference for Amazon seller fees, you’ve found it. This table compiles every possible cost for selling on Amazon. Check it out!
|Amazon Seller Fees||Cost|
|Amazon seller plan||$0.99 per item for Individual Selling Plan
$39.99 per month for Professional Selling Plan
$0.00 for Selling Services sellers
|Per-item fees||$0.99 per item for Individual Selling Plan users|
|Rental book service fees||$5.00 per textbook rental|
|High-volume listing fees||$0.005 per month for applicable ASINs|
|Refund administration fees||Lesser of $5.00 or 20% of referral fee per return|
|Variable closing fees||$1.80 per media item|
|Selling Services fees|
|Pre-packaged service||20% for services up to $1000 15% for services over $1000|
|Recurring services||15% for services purchased as a subscription|
|Minimum referral fee||$0.30 minimum per item|
|Referral fee percentages||6% to 96% per item, based on item category|
|Individual Selling Plan||$3.99 to $14.95 per domestic order
$16.95 to $46.50 per international order
$0.50 to $0.99 per pound over weight limit
|Professional Selling Plan||Set by seller|
|Fulfillment by Amazon (FBA) fees|
|Inventory storage||$0.69 to $2.40 per cubic foot per month for non-dangerous goods
$0.99 to $2.43 per cubic foot per month for dangerous goods
|Long-term storage fee (LTSF)||$6.90 per cubic foot per month, or $0.15 per unit per month|
|Fulfillment||$2.41 to $137.32 per unit
$0.39 to $0.91 per pound over weight limit
|Per-unit||$0.40 per unit for clothing $0.11 per unit for products with lithium batteries|
|FBA Small and Light fees|
|Order handling||$0.80 per order for items less than or equal to $5.00
$1.00 per order for items over $5.00 and less than or equal to $7.00
|Picking and packing||$0.75 per unit|
|Weight handling||$0.11 per ounce|
|LTSF||$0.25 minimum per unit|
|Multi-Channel Fulfillment (MCF) fees||$5.85 to $143.30 per unit
$0.39 to $0.92 per pound over weight limit