Amazon Fees: How Much Does It Cost to Sell on This Marketplace?
Amazon is one of the largest online marketplaces in the world, offering unlimited opportunities for sellers. But how much does it really cost to sell on Amazon? Let’s take a closer look at the fees every seller should be aware of.
1. Basic Fee: Monthly Subscription
If you plan to sell on Amazon, you’ll need to pay a monthly subscription fee of €39 (or its equivalent in other currencies). This fee applies to professional sellers only. If you’re selling just a few items per month, you can use the individual plan without the monthly fee, but with higher per-item fees.
2. FBM (Fulfilled by Merchant) Fees
If you choose to ship your products yourself (FBM - Fulfilled by Merchant), you’ll pay the following fees:
a) Success Fee
Amazon charges up to 15% of the product’s sale price, including VAT. This also includes shipping costs if charged to the customer. The percentage varies depending on the product category.
Success Fee by Category:
b) Cancellation Fee
If a customer returns an item and you issue a refund, Amazon keeps 20% of the original success fee. The maximum amount Amazon will keep is €5.
3. FBA (Fulfilled by Amazon) Fees
If you choose the FBA model, where Amazon takes care of storage, shipping, and customer service, you’ll pay the following fees:
a) Success Fee
The same as FBM – see the table above.
b) FBA Fee (Fulfillment Fee)
This fee covers the cost of packing and shipping the product to the customer. The exact amount depends on the size, weight, and price of the product. You can calculate these costs using the FBA Calculator.
c) Storage Fee
Storage fees depend on the size of the product and the length of storage:
• First 90 Days: Standard storage fees apply.
• 91-180 Days: Increased fees.
• 180+ Days: Significantly higher fees (long-term storage fees).
For detailed information, refer to the FBA pricing section in your Seller Central account.
4. Recommendation: Use Analytics Tools
Keeping track of all fees and effectively managing your margins can be challenging. That’s why we recommend using professional analytics tools, such as Selin by Wecker. This tool helps you:
• Accurately calculate all fees, including hidden costs.
• Optimize your pricing strategy.
• Identify opportunities to maximize your profits.
Using such tools can save you time and money, enabling you to invest more in growing your business.
5. Other Potential Fees
• Advertising Costs (Amazon Ads): Boosting product visibility with paid advertising incurs additional costs.
• Refund Administration Fee: If a customer requests a refund, Amazon may charge a processing fee.
• International Transaction Fees: Selling outside your primary country may involve extra fees.
Summary
Selling on Amazon can be profitable, but it’s essential to understand all the associated costs to effectively manage your expenses.
Here’s a quick overview:
To stay competitive, make sure to calculate your costs carefully using tools like the FBA Calculator or professional solutions like Selin by Wecker.
Selling on Amazon is an investment, but with proper preparation, it can become a key to successful online business!