Amazon Seller Fees: Cost of Selling on Amazon in 2021

Amazon sellers have to pay a percentage of the sale price as fees known as Seller Fees. Amazon is one of the most popular shopping websites in the world, and it’s hard for an independent seller to compete with them on price point due their low cost structures. The issue that many small businesses struggle with when selling online is how can they scale up without sacrificing margins?

The “amazon selling fees calculator” is a tool that will help you calculate the cost of selling on Amazon in 2021. The calculator takes into account the number of items you want to list, your shipping costs and more.

Sale-related fees, seller account fees, shipping charges, and Amazon FBA fees are the four main Amazon seller fees. Account fees vary from $0 to $39.99 each month, while sale-related fees range from 6% to 45 percent of the product’s selling price, with the typical seller paying 15%. You’ll also have to complete and ship your order, which can cost a lot of money depending on what you’re selling.

We’ll go through each form of Amazon seller charge in detail below, as well as how to estimate the costs you’ll pay for each product you sell on Amazon.

1. Fees Associated with Amazon Sales

When selling things on Amazon, there are three sorts of Amazon seller fees to consider: referral fees, minimum referral fees, and closure costs. These fees vary depending on your item type and selling price, so doing some research to gain an exact picture of your charges may be necessary. Here’s a quick rundown of the costs, which we’ll go over in more depth below:

Fees for Referrals

For every item that sells on Amazon, all Amazon sellers, including Individual and Professional accounts, pay a referral fee. Your referral fee is determined by two factors:

• Your product group
• What is your selling price?

Referral fees are calculated as a percentage of the selling price of your goods. The majority of merchants pay a 15% referral fee on average. However, depending on which categories your items fit under, these fees might vary from 6% to 45 percent. Check Amazon’s Seller Fee Schedule, which specifies referral fees for individual Amazon categories, to find out precisely what referral fees you’ll pay on the goods you sell.

Fees for Minimum Referrals

Some (but not all) Amazon categories have a Minimum Referral Fee. This is generally $1, however in the case of jewels and watches, it is $2. If a category where you sell has a minimum referral fee, you’ll pay the higher of the two fees (not both!) depending on the selling price of your goods.

Referral Fees on Amazon as an Example & Minimum Referral Fees

The following items are available on Amazon in the Home and Garden category. There is a 15% Referral Fee in this category, but there is also a 30 cent Minimum Referral Fee. The fees that sellers pay on two separate goods with differing selling prices are as follows:

The 15% referral fee for drink coasters is 22 cents, which is less than 30 cents. As a result, Amazon charges a 30 cent Minimum Referral Fee. The 15% Referral Fee on the throw pillows, on the other hand, is $3.75, which is more than 30 cents. So, when this item sells, Amazon charges a $3.75 Referral Fee.

Remember that in categories having Minimum Referral Fees, Amazon applies the higher of the two fees. On Amazon’s Seller Fee Schedule, you can check which categories have Minimum Referral Fees.

Closing Costs

For items sold under Amazon’s media categories, there is an extra cost. The Closing Price is a one-time fee of $1.80 that is applied to the Referral Fees for products in any media category, including:

• Books
• DVD
• Music
• Computer/video games and software
• Video
• Consoles for video games

What if I told you that

Amazon deducts a percentage of your payments, which occur every 14 days. Amazon, on the other hand, keeps proceeds from each transaction for seven days after a product is delivered to account for any unforeseen expenditures. After the payment, you’ll probably have to wait three to five days for monies to be placed into your bank account.

If Amazon is your only source of revenue, this sluggish distribution schedule might have a significant negative effect on your cash flow. While you can’t adjust Amazon’s payout schedule, you may use a service called Payability to obtain daily payments.

Payability is an Amazon Pro Seller factoring service that connects to your account, monitors your sales, and makes daily direct transfers based on your sales for a 2% fee.

Let’s take a look at the second major Amazon seller fee: account fees, now that we’ve gone through the most expensive costs.

2. Fees for Amazon Seller Accounts

There are two sorts of Amazon seller accounts available. Each has its own set of costs and features tailored to the demands of low-volume individuals and high-volume commercial sellers:

Along with the changes in prices, each kind of account has features that cater to the requirements of small and big merchants.

Accounts for individual sellers

Amazon Individual Seller accounts need simple setup and have no monthly fees, making them ideal for occasional and low-volume sellers. However, you have several limitations in comparison to Professional Seller accounts:

• Allows for up to 40 product sales each month—not product listings, but real product sales.
• Bulk uploads aren’t supported, thus you’ll have to generate listings individually on the Amazon Seller Central interface.
• Restricted to a few categories
• We are unable to provide gift wrapping.

Accounts for Professional Sellers

For $39.99 per month, Amazon Professional Seller accounts are tailored to fulfill the requirements of companies and include a slew of volume-selling features:

• There are no limits to the number of products that may be listed
• Uploads of several products in bulk
• Connects to order management and ecommerce platforms.
• Inventory control is important.
• FBA inventory control
• Can provide gift wrapping services

Which Account Is Most Appropriate For You?

If you’re going to Amazon from another ecommerce platform, the Professional Seller account is the best option. In contrast, the Individual Seller account is far more restricted and needs more hands-on control.

If you’re just getting started selling things on Amazon, though, an Individual Seller account may help you get started with no upfront charges. Creating an Individual Seller account and listing items costs nothing. Fees are only levied if your goods sells. You aren’t even “charged” with anything. You don’t pay a thing out of pocket since Amazon deducts their fee from your reimbursement.

As a result, we’ve looked at the sales-related and account costs you’ll face while selling on Amazon. Following that, we’ll look at your operating costs like shipping and order fulfillment.

3. Shipping Costs and Credits

These aren’t seller fees, but if you’re not cautious, they may add up. If you ship Amazon purchases yourself, Amazon will give you a shipping credit for each transaction, but there’s a catch. When compared to the real shipping charges you pay to send items, the credit it gives merchants is usually little.

You may end up costing significantly more to ship orders than you earn from Amazon’s shipping credit, depending on what you offer and the overall size and weight of each box you send. You need to know how much you’ll earn from Amazon for each item you sell to make sure you don’t lose all of your income due to shipping charges.

You may estimate your credits for each purchase using the Amazon delivery credit table below:

(Image courtesy of Amazon)

Use the table above to find out how much Amazon will pay you for delivery when your items sell to determine whether credits will cover your shipping expenses. Then do a comparison between these figures and your real delivery expenses. You may be able to make a profit if you sell little, light products. However, if your items are sent in big and/or heavy boxes, you may lose money on every transaction.

Delivery software is one item that may drastically reduce your shipping expenses while also increasing your Amazon earnings. It allows you to compare prices fast and automate your shipping tools.

Some mailing software, such as Stamps.com, integrates orders straight from your Amazon account, chooses the optimal shipping rate based on pricing, provides reduced postage rates, and even sends consumers tracking information. This allows you to dispatch every purchase at the lowest feasible cost while also delivering faster. Start a four-week trial at Stamps.com and earn $5 in free postage.

In order to determine if you can price things economically, you must calculate your shipping credits vs. real shipping costs. You’ll probably discover that Amazon is viable, if not great, for some things, but that it isn’t the best option for everything you offer.

In fact, one of the most common reasons that Amazon sellers, particularly Professional Seller account holders, use Fulfillment by Amazon (FBA) to distribute the items they sell on Amazon is to save money on shipping.

Do you want a PDF version of this article? To obtain it for free, go here.

Fees for Amazon’s Fulfillment by Amazon (FBA)

FBA can store, pack, and distribute Amazon items for both individual and professional sellers. Of course, Amazon charges fees for this, but for specific goods, many Amazon sellers find the FBA rates to be extremely affordable. It also relieves you of time-consuming daily order packaging and shipping responsibilities, as well as making your products Prime-eligible.

The cost of FBA is determined on the size and weight of the merchandise. Before you sign up for FBA, you should understand the overall costs you’ll pay to store and transport your items, just like any other aspect of selling on Amazon.

Fees for FBA include two services.

Amazon’s FBA fees are rather straightforward; one charge covers all of the selecting, packaging, and shipping expenses, while the other charge covers inventory storage. FBA costs include everything from boxes to packing to returns processing if your customers return things to Amazon.

You’ll come across two sorts of FBA fees:

• Pick, pack, and weight handling fees: This is the total cost of your order from start to finish, including shipping.
• The expense of holding your merchandise in Amazon’s warehouse on a monthly basis.

The size of the product determines Fees for FBA

The size of the merchandise you’re storing and transporting determines your FBA expenses. Any packaging for your goods, such as shoe boxes, blister packs, or retail packaging, is included in the size. FBA items are divided into two sizes by Amazon:

• Standard-sized goods must weigh less than 20 pounds and measure no more than 18′′x14′′x8′′ when properly packed.
• Oversized items are those that weigh more than 20 pounds and/or measure more than 18′′x14′′x8′′.

Remember that the FBA costs listed below are in addition to the Referral and Account Fees mentioned above.

Fulfillment by Amazon (FBA) fulfillment charge modifications take effect on June 1, 2021. To see how FBA costs differ depending on size and item category, use the tabs below:

Fees for FBA in 2021 (excluding apparel)

Fees for Apparel on FBA in 2021

Fees for Amazon FBA Inventory Storage

FBA also charges storage fees for inventory. During the Christmas season of October through December, these rates are greater. Referral fees, account fees, and fulfillment costs are not included in these storage prices.

If you’re thinking about using FBA, you should be aware of the additional costs that may appear on your statement. Long-term storage costs and re-labeling fees for incorrectly labeled merchandise are two examples. If you don’t keep track of them, your revenues may dwindle. So, if you take that way, make sure you’re aware of all the FBA costs you’ll be charged.

Frequently Asked Questions about Amazon Fees (FAQs)

Is FBA’s cost per unit determined by the number of units sold or the number of units stocked?

If nothing sells throughout the month, you’ll just be charged FBA’s storage cost. Pick-pack-ship costs are in addition to storage fees, and they add up when things sell and orders ship. FBA tacks on additional costs for aging goods if your stuff sits unsold for too long, so keep an eye on that.

Is the referral fee included in the FBA charge preview?

Although the Amazon seller fee is a distinct price, the FBA fee previewer includes both the Seller Fee and the FBA projected fee in your cost estimates—the Amazon Fee Preview page clearly states:

“For a specific product, the Fee Preview column displays the main fees for Selling on Amazon and Fulfillment by Amazon. The Fee Preview is merely a rough estimate and does not account for all possible fees. The fees shown are calculated using the list price, anticipated delivery costs (where applicable), and data on the product in our database. Actual fees may differ from those listed and are subject to change.”

Conclusion

Amazon accounts for about half of all internet sales in the United States. The marketplace attracts a sizable crowd of interested buyers. In fact, it’s estimated that Amazon is the starting point for more than half of all online buying queries. Start selling on Amazon if you want to reach almost half of all buyers wanting to purchase anything online every day. However, there are expenses to consider.

Because the margin between profit and loss on each item you sell might be razor-thin, it’s critical that you understand all of the fees and charges associated with selling on Amazon. If you do, you’ll be able to locate successful items and succeed in this massive, ever-expanding industry. If you’re ready to get started, check out the following resources:

Amazon Seller Fees: Cost of Selling on Amazon in 2021. The “amazon seller account” is a service that allows sellers to list their products on Amazon and get paid for every sale they make.

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