Amazon is one of the biggest e-commerce platforms that offers a wealth of opportunities for businesses and entrepreneurs worldwide. However, one thing that can catch sellers off guard is the variety of fees Amazon charges to use its platform. In this article, we will provide a comprehensive guide on amazon fees for sellers.
What Are Amazon Fees?
Amazon fees refer to the different costs that sellers have to pay in order to use the platform. These fees vary depending on the type of product, category, and pricing. Below are some of the most common fees that Amazon charges:
Referral Fees
Referral fees refer to the percentage of the product’s sale price that Amazon charges when a product is sold. This charge can range from 6% to 45%, depending on the category of the product. Amazon charges this fee to cover the cost of processing the transaction and customer service.
Subscription Fees
Sellers who choose to use Amazon’s professional selling plan are required to pay a subscription fee. This fee is $39.99 per month and provides access to additional features such as bulk listing, report downloads, and custom shipping rates.
Closing Fees
Closing fees are charges that Amazon imposes on media and video game sellers. These fees cover the cost of media and video game refunds and are charged per item sold.
Fulfillment Fees
Fulfillment fees are charged to sellers who opt to use Amazon’s fulfillment services. These fees cover the cost of picking, packing, and shipping products. The fees vary depending on the size and weight of the product.
Storage Fees
Sellers who use Amazon’s fulfillment services also incur a storage fee, which covers the cost of storing products in Amazon’s warehouses. The fee is based on the volume of the product and the time of year.
Advertising Fees
Sellers can run advertising campaigns on Amazon to promote their products. Amazon charges these sellers an advertising fee, which is the cost per click. The fee varies depending on the product’s category and the competition.
Refund Administration Fees
Amazon charges sellers refund administration fees when customers return products. The fees differ depending on the category of the product and the reason for the return.
Long-Term Storage Fees
Sellers who have products stored in Amazon’s warehouses for an extended period may be charged a long-term storage fee. This fee is charged twice a year and varies depending on the product’s size and the time it has spent in storage.
Multi-Channel Fulfillment Fees
A seller who is using Amazon’s fulfillment services and executes sales outside the Amazon channel is also charged a Multi-Channel Fulfillment fee. The fee is calculated based on the fulfilment required.
Conclusion
Amazon fees can be complicated and may seem overwhelming at first, especially for new sellers. However, understanding these fees can aid in maintaining a profitable business using Amazon's massive customer base. It is essential to take these fees into consideration while pricing a product, so you don't end up losing money. Utilize the tips and insights in this guide to optimize your selling and make the most out of Amazon’s platform.