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What are Amazon Seller Fees?
Amazon seller fees are the different charges imposed on sellers who use Amazon’s platform to list, sell, and fulfil their products.
These fees are essential for operating a business on Amazon and can vary depending on factors such as your seller account type, product category, and fulfillment method. Understanding these Amazon selling fees is important for maintaining profitability and making informed decisions about your pricing strategy.
Amazon selling fees can differ across seller account types (individual vs. professional), product categories, and fulfillment methods like Fulfillment by Amazon Seller Fees (FBA) and Fulfillment by Merchant (FBM). Knowing how to calculate these Amazon selling fees will help you manage your costs and optimize your pricing approach.
Below are the main types of fees that Amazon charges:
How to Calculate Amazon Seller Fees & Charges?
1. Subscription Fees: Amazon charges a monthly subscription fee for Professional Selling accounts, which grant access to extra tools and reports. A fee per item is instead paid by individual vendors.
Individual Seller Account: No monthly fee, but a $0.99 fee per item sold.
Professional Seller Account: $39.99 per month (this does not include any per-item fees but is required for accessing advanced selling features).
2. Referral Amazon selling fees: It starts at 2%, and varies based on product category. Amazon Seller Fees charges a referral fee on each item sold, which is a percentage of the total sales price. It varies in different categories such as ranging from 6% to 45%. The average referral fee is almost precisely 15%. This fee is based on the percentage of the product’s total selling price and varies depending on the product category.
For example:
Books: 15%
Electronics: 6–15% (depending on subcategory)
Clothing and accessories: 17%
Home goods: 15%
These fees are typically deducted automatically when you make a sale.
Total Referral Fees = Product price x Referral Fee %
3. Closing Fee: It is based on the price of the item sold. Fee based on your product price, payable in addition to the Referral Fee. A Closing fee is assessed each time it is sold on Amazon depending on the product’s price range. Additionally, the fulfilment channel you choose increases this price.
Total Closing Fees = Fees based on Product price & category
4. Weight Handling Fees/ Shipping Fee: It is dependent on shipping and delivery. It starts at Rs. 29 per shipping item and varies according to the amount and distance of the item. When you use Fulfilment by Amazon Seller (FBA) or Easy Ship, Amazon will deliver your goods to the consumer and charge you for the service.
( If you decide to self-ship, you will be responsible for paying the shipping fees and using your own delivery personnel or a third-party courier service to deliver the goods).
Total Shipping Fees = Fees based on Product weight and distance
5. Advertising Fees: When you use Amazon’s advertising services to promote your products on the site, you will be charged an advertising fee. This platform provides various advertising options to help sellers maximize visibility and drive sales, including Sponsored Products, Sponsored Brands (formerly known as Headline Search Ads), and Sponsored Display Ads.
6. Other Fees: It is based on the program and service. Amazon Seller Fees( FBA )charges for order picking, packing, and storing.
7. Fulfillment by Amazon (FBA) Fees: If you choose to use Amazon’s fulfillment services, you’ll pay fees based on the size and weight of your products, as well as storage duration. These fees cover storage, picking, packing, shipping, and customer service.
8. Fulfillment by Merchant (FBM) Fees: If you fulfil orders yourself, you won’t incur fulfilment fees directly related to Amazon Seller Fees, but you’ll still be responsible for shipping and handling costs.
The three fees mentioned above apply to almost all Amazon orders. However, depending on the program, service, or fulfillment channel you’re using, you could have to pay more.
Fulfillment Fee Structure Comparison
| Fee Type | Varies with | Fee Amount | Charge Fee |
| Referral Fee | Product category | 2%- 21% of S.P | Per Sale |
| Closing Fee | S.P & Fulfillment Options | ₹ 5 to ₹ 59 | Per Sale |
| Weight Handling Fees | Product Dimensions & Shipping Distance | Starts at ₹ 28 | Per Sale |
| Pick & Pack Fees (FBA Only) | Product Weight & Dimensions | ₹ 10 to ₹ 50 | Per Sale |
| Storage Fees (FBA Only) | Inventory Dimensions | ₹ 20 per cubic foot | Per Month |
| Removal Fees (Only) | Product Weight & Dimensions | ₹ 10 to ₹ 100 | Per Item Removed |
Selling On Amazon Seller Fees = Referral Fee + Closing Fee + Shipping Fee + Other Fee
9. Closing Fees
For media products like books, DVDs, and software, Amazon charges a fixed closing fee (e.g., $1.80 for each media item sold).
10. Additional Charges for Special Services
Amazon Brand Registry: This can be useful for brand protection, but it may have additional costs or requirements.
Labeling and Packaging: If you require Amazon to label products or package items a certain way, extra fees may apply.
How to calculate profit on Amazon.in
Maximizing Your Profits with Amazon Seller Fees
- Evaluate the referral fees applicable
- Identify the closing fee applicable
- Calculate the correct shipping charge or verify the delivery costs if you choose to self-ship.
- Find Total Amazon selling fees = Referral Fees + Closing Fees + Shipping Fees + Other fees
- Profit = Product Sale price – cost of product – Total Amazon selling fees.
Complete Guide to Amazon Seller Central
When collection and delivery take place within the same city, or intra-city pickup and delivery, the local charge will be applicable. There are four regions in a regional zone.
If the service is provided outside of the same city but the shipment is moving inside the same region, regional prices will be charged. If the shipment travels between areas, the national rate will be applied.
Selling on Amazon involves a variety of fees, depending on the type of account, product category, and whether you’re using Fulfillment by Amazon Seller Fees (FBA) or fulfilling orders yourself (FBM). Understanding these fees is essential for managing your profits and ensuring that your business runs smoothly.
Conclusion
Selling on Amazon Seller Fees involves various fees that can significantly impact your profitability. By understanding and calculating the different types of fees, such as referral, closing, shipping, and advertising fees, you can make informed decisions and adjust your pricing strategies accordingly.
Whether you choose FBA or FBM, it’s crucial to account for all applicable fees to ensure your business remains profitable. Stay informed and continuously optimize your fulfillment methods to run a successful Amazon business.
FAQs
Can I change My Bank Account Information after Registration?
Yes, you can edit the bank account information anytime through account settings on Seller Central. However, to prevent any payment delays, make sure the updated bank account details are correct and up to date.
Can I enter multiple pickup addresses?
Multiple pickup addresses are not supported through an Amazon seller account. Please enter only one address for pickup.
What products are not supported by Amazon Easy Ship?
Amazon easy ship does not support oversized, bulky items, restricted items above the weight of items are 18 kg and products dimensions 70 cm x 70 cm x 45 cm.
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