Selling on Amazon has become one of the most popular ways to start a business, but it needs to be done right, or the seller could end up ruining their profitability with Amazon fees. While third-party sellers are vital for Amazon’s continued growth and success, they are also one of the ways that Amazon makes insane amounts of money.
Amazon has a long list of potential charges that may or may not apply to listings that you create, but in most cases, there will be at least a few charges and fees that will apply to every listing you have. We’re going to take a close look at those fees, and the costs to sell in general, and in the end, we’ll look at just how much Amazon takes from sellers and if there’s any way to limit exposure to those fees.
How Much Does Amazon Keep When You Sell
Immediately when you make a sale, there will be charges associated with using the Amazon platform, and they will start out depending on your seller account type. If your seller account is set up as an individual seller account, you will be limited to a number of sales each month, and Amazon will take $0.99 from the sale of each item. However, if you have a professional seller account, there will be no limit on the number of products that you can sell each month, and there will be no per-item fee, but there is a $39.99 monthly subscription fee.
Additionally, there will be order fulfillment charges as well, which can fluctuate significantly depending on whether you use fulfillment by Amazon or fulfillment by merchant. For items sold under the FBA framework, the fees on a per-item basis can be as much as $5 or more for a package of just over 2 pounds. This rate can change drastically with the size and weight of the item being sold.
How Much Does Amazon Charge To Sell Items
Amazon takes a cut of every item sold which can be as low as just 6%, for expensive items like computers, to as high as 45% for some accessory categories. In many cases, there will also be a minimum referral fee, in case the percentage isn’t enough. In most cases, the minimum referral fee is $1.00, though it doesn’t apply to all categories.
For items sold through FBA, there will also be a charge for storage, fulfillment, and additional optional services. These fees will be in addition to the conventional selling fees applied to each sale. The fees are broken down by category and depend greatly on what is being sold, and the specifics of the sale.
How Much Does Amazon Take From Sellers
This is the biggest and most complicated question because the amount that Amazon takes from sellers will depend highly on not only what they are selling, but how it’s being fulfilled, as well as other factors. There are monthly subscription fees, per-item fees, shipping fees, FBA fees, referral fees, and variable closing fees.
The monthly subscription fee can significantly offset the per-item charges that Amazon places on low-volume sellers, but the subscription can waste money if sales volume is low. The shipping fees apply to self-fulfilled orders and are based on shipping options selected by the buyer.
Let The Amazon Junkies Manage Your Store & Amazon Fees
Selling on Amazon can be incredibly complicated, particularly when it comes to how much of your money they’re taking with each sale. Partnering with a firm like The Amazon Junkies means you can let experienced professionals run your shop with the lowest fees possible, generating the highest profit possible. Reach out for more information about how we can help your Amazon store.