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What expenses do Amazon sellers have?

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Selling goods on Amazon comes with a price for online businesses. Your expenses will vary depending on what kind of selling you are looking to do, and what kind of insights you are looking to receive from Amazon.  This price can vary depending on the type of selling plan a seller purchases, along with different types of fees and charges. This guide will outlines what expenses Amazon sellers have.

Of course, the right Amazon seller tools make a huge difference, too, so you can track everything about your online business. Read below to find out what kind of expenses Amazon sellers have.

Selling Plans

In order to sell items on Amazon, sellers must choose between two selling plans that Amazon offers. The Individual plan costs $0.99 per item sold in addition to extra selling fees. This plan is for the more casual seller. The website recommends the Individual plan to sellers who might only sell fewer than 40 units per month, don’t plan on advertising or using advanced selling tools, and are still deciding what to sell. The second plan that Amazon offers its sellers is the Professional plan. This plan costs $39.99 per month in addition to extra selling fees. This plan is for those who plan on selling more than 40 units per month and have the funds necessary to advertise their products. By purchasing the Professional plan, the seller will qualify for top placement on product detail pages, and allows the seller to sell their products in restricted categories.

Referral Fees

For every item sold on Amazon, the seller pays what is known as a referral fee. This fee pays Amazon a percentage of the total price (item price, shipping price, etc). Depending on the classification of the product being sold, the referral fee percentage can vary. For example, beauty products carry an 8% referral fee for products with a total sales price of $10.00 or less. Books carry a 15% referral fee, along with an additional charge for a closing fee. Almost every kind of item category carries a fee specific to that category.

Fulfillment Fees

Amazon’s Fulfillment fees depend on what the seller wants to do in terms of shipping products. If the seller intendson using Amazon’s fulfillment services, the cost of shipping will change depending on the size and classification of the product being sold. Classifications of products include size, dimensions, weight, and packaging size. A small standard product that weighs 10 oz. or less with a packing weight of 4 oz. carries a $2.50 fee. If the seller chooses to ship the product themselves, Amazon will charge shipping rates based on the product category and shipping service selected by the customer. The seller will receive a credit based on the shipping fee that Amazon charges the customer. The shipping fee will change depending on the type of selling plan that a seller purchases. Those with the Professional plan can set their own shipping rates, while those with the Individual plan are forced to use Amazon’s set shipping rates.

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