Amazon FBA Fees
One question most new sellers ask when starting out on Amazon is what FBA fees on Amazon are. Fulfilment by Amazon is a very important plan for new sellers on Amazon. Apart from the fact that it saves you the stress on worrying about the logistics of your products before and during sales, it also allows you the opportunity to worry about other things after posting the product. However, considering that FBA comes at are important for sellers on Amazon, especially for sellers who plan to use FBA. This is essential because to calculate the total amount of profit you’d get at the end of a sale; it is important to know all the fees associated with the sale.
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In the course of this article, you would find all possible fees involved in the process of selling on Amazon. These fees are assessed in four major sections:
· Basic fees to be paid whether you use FBA services or not.
· Fees from FBA services
· Fees associated with FBM services
· Fees for other services on Amazon
Basic Fees for Sellers on Amazon
Regardless whether you use the FBA or not, there are basic fees required to sell on Amazon. Some of these include:
1. Referral fees
These are the basic dues paid to Amazon by sellers on all items sold on Amazon. These fees are paid by all sellers on Amazon. Usually, the rate is often about 15% or less in some instances. However, you don’t have to worry about commission before sales. Referral fees are usually taken from your Amazon account after the sale.
2. Professional seller subscription fee
Professional sellers can, however, opt for a subscription fee rather than individual per-item charges. Currently, the subscription fee is $39.99. And just like individual per-item fees, the funds are deducted from your Amazon account or your credit card if you don’t have enough funds on your Amazon account.
3. Individual per-item fees
Amazon offers two types of seller accounts: Individual and professional accounts. Based on the kind of account you run as a seller, you either have to pay an individual per-item fee Amazon charges every time you make a sale, or you pay a subscription fee monthly. The individual per item fee is $0.99 for every sales transaction.
Just like referral fees, these fees are also deducted after you have concluded a sale on Amazon. Amazon deducts these fees from the final amount that is deposited into your account. So, you don’t have to worry about the upfront payment of these fees.
4. Refund administration fees
Also, in case a shopper requests a refund on a product that you have already been paid for as a seller, Amazon charges a fee to process the refund. The fee is usually $5.00 or 20% of the total amount refunded, depending on which is less.
And just like the other fees earlier mentioned, refund administration fees are deducted from your account balance or charged to your credit card if you don’t have enough funds in your Amazon account.
Fees Associated with FBA Services
Fulfillment by Amazon fees basically includes all charges for the services covered under the FBA package, from packing, shipping, customer support, and any other storage expenses. These are the main components of the FBA fees.
However, you should also look out for monthly payments, labeling, and returns processing charges. You can use an FBA calculator to get an estimate of these costs.
If, as a seller, you would like to avoid the stress of worrying about the logistics of selling, FBA is a fantastic option for you.
Amazon FBA Storage Fees
If you have chosen to use the Amazon FBA plan, storage fees are one of the major components of FBA fees. The charge depends majorly on the duration of storage and the size of the item.
Fees Associated with FBM Services
Not all sellers use the Amazon FBA plan. Sellers who would not like to use the FBA plan are referred to as Fulfillment by Merchant (FBM) sellers. And this simply means that the seller is responsible for the storage and delivery of the products. This means that if you would be using the FBM package, you should factor all the costs associated with storing the products and shipping them off when an order is made.
Although some sellers might choose to work with other logistics companies to make the process easy.
Miscellaneous and Optional fees
The last group of fees that usually apply to sellers on Amazon irrespective of whether they are FBA or FBM sellers includes closing fees for media products like CDs, DVDs, books, etc. This usually comes at a flat rate of $1.80 fee per sale.
Sellers with over 100,000 products might also have to worry about High-volume listing fees, which can be up to $0.005 per eligible ASIN. Sellers who rent textbooks on Amazon are also required to pay a $5.00 rental book service fee on each book rental sold.
In conclusion, selling on Amazon comes with a number of costs, especially if you are also looking at using the Amazon FBA services. You can use an FBA calculator to get an estimate of the FBA fees associated with selling your product.