including individual and professional
1 Answers
A lot of people wonder if it’s worth selling on Amazon because they assume the fees amount to a lot and which leaves sellers with very meagre profits. This is not entirely true.
Amazon charges its sellers fees but it is actually quite economical. I’m going to explain some of the important Amazon seller fees and their amount so that you have a clearer perspective.
Registration/Account type fee
When you sign up for a seller account on Amazon Seller Central, there are two types of accounts
▪️Individual：This account entails a fee of $0.99 for every item that you sell. Apart from that, there is no other monthly subscription fee or registration fee. This makes sense for smaller or newer sellers looking to sell not more than 40 items a month.
▪️Professional：This type of account entails a $39.99 fee to register which you have to keep paying on a monthly basis. While this may seem expensive, it makes a lot of sense for bigger sellers who sell 100 and more items a month.
Also, Amazon charges a referral fee for every item that you sell and it is a percentage of the total price that you sold the item at. It varies according to the category, starting at 8% and can go all the way up to 45%.
Fulfillment fees
Amazon offers two types of fulfillment options to its sellers：FBA (Fulfilled by Amazon) and FBM (Fulfilled by Merchant)
FBA is a method by which Amazon takes care of everything fulfillment-related. All you have to do is have your orders shipped to an FBA warehouse or fulfillment center. From there on, Amazon will store, package, label, and ship your products and even handle customer service, returns, and exchanges of products. Of course, all of this comes at a price. Storage and shipping fees depend on the size, weight, and dimensions of your items. When it comes to storage, you pay according to the space you occupy and shipping costs are also dependent on dimensions and weight.FBA fulfillment fees for non-apparel items begin at $2.16 and go up to over $138 depending on the size tier. For apparel items, the fees begin at a minimum of $2.16 and go up to a maximum of a little over $6 varying according to the size tier.Sellers are charged FBA storage fees on a monthly basis according to the cubic feet that your inventory occupies in the warehouse. Also, it varies according to the time of the year. From January to September the fee is between $0.48 and $0.75 while from October to December the fee is between $1.20 and $2.40.
Amazon PPC costs
Advertisements on Amazon follow a CPC (Cost Per Click) model and on average, it costs about $0.77. This can vary depending on the type of PPC campaign and other factors and can be more expensive or cost lesser.
