Amazon is the most popular ecommerce platform in the world today. It is claimed to have more than 40% of online sales from all around the world. Many customers are looking for their favorite products on Amazon. Because of this reason, many business owners want to promote their products in this marketplace. Before you decide to sell any products on Amazon, you also need to learn about the Amazon seller fees. By calculating all of these fees, you can calculate the total costs that you are going to spend on selling any products on Amazon.
6 Things You Should Know About Amazon Seller Fees
1. Selling plan subscription
When you decide to sell on Amazon, you need to know about two selling plan options, including the Individual and the Professional. The individual selling plan is good for you who are selling up to 40 items every month. This plan only requires to pay $0.99 for every item you can sell on Amazon. There is no monthly fee on the individual plan.
If you are going to sell more than 40 items every month, you can choose the Professional selling plan. This plan costs about $39.99 per month. You don't need to pay the per-item fee which is around $0.99 per item. You will have a lot of options when choosing this plan, for example, customizing your shipping rates, display bulk-list products, etc.
2. Selling Services Fees
Don't forget to put this fee into your Amazon fee calculator. This fee is only valid for you who are planning to sell any services on Amazon. You are allowed to get and find any potential clients on Amazon without an upfront cost. You only need to pay a revenue share for any completed jobs based on the final service price and the service type. Two Amazon fees are associated with the Selling Services on the Amazon option.
A pre-packaged fee is a fee for any pre-packaged service. You can sell any services, for example, mounting a television, assembling a treadmill, etc. For any of these services, Amazon will take about 20% of your total cost (if your service is less than $1,000) or 15% of the service more than $1,000.
A recurring service that you sell on Amazon, for example, house cleaning or lawn care, will require you to pay for the recurring service fee. Amazon will take about 15% of any recurring service fees that you are going to charge your customers.
3. You need to pay the referral fees
This is another important thing that you need to know before you sell any items or services on Amazon. Amazon will charge any users on the Individual and Professional selling plans with this referral fee. This fee is used for paying Amazon that can bring users to your business through its brand reputation and popular website. For every item you can sell on Amazon, you will pay a referral pee. This fee will depend on the item's category and a minimum referral fee.
The minimum referral fee is $0.30 for every item you can sell on Amazon. Some items categories don't have a minimum referral fee, for example, music instruments, books, and also video games. You also need to know about the referral fee percentage. The percentage rate is ranging from 6% (for any personal computers) to 96% (for selling protection plans, service contracts, and also extended warranties).
4. The Fulfillment by Amazon (FBA) fees
If you are serious about selling on Amazon, you can consider taking the FBA program. It is a famous program that offers shipping, customer service, and also inventory management services for your business. You can use the Amazon FBA fee calculator for calculating some fees that are included in this program. Here are some popular fees that you are going to pay for joining this FBA program from Amazon. You can make your items eligible for the Prime program at Amazon. Your customers can join the prime membership by paying the Amazon prime fee for buying any of your Prime-eligible items.
a. Inventory storage
For storing any of your items, Amazon will charge monthly fees which are about $0.69 - $2.40 (for any non-dangerous items) or $0.99 - $2.43 (for dangerous goods). These monthly fees are calculated based on every cubic foot.
b. Fulfillment
For fulfilling any orders from your customers, Amazon will charge about $2.41 to $138 per unit. When your items exceed the unit weight limits, you are going to be charged another $0.39 - $0.91 for every additional pound. This fulfillment fee will include some services, including, shipping orders, picking orders, order handling, customer support, and also product return.
c. Order handling
This is another common fee that you are going to pay to Amazon. For handling any orders, Amazon will charge between $0.8 to $1.00 for every item.
5. Product size will determine the FBA fees
This is another important thing that you need to know, especially when you want to join the FBA program from Amazon. Besides paying the Amazon membership fee, you are going to learn about specific product sizes for any FBA items. Some FBA fees are calculated based on the product size that you are storing and shipping. Amazon has two size categories, including standard-size products and oversize products. The standard items must weigh less than 20 pounds. The dimension should not exceed 18 x 14 x 8 inches.
6.Shipping credits and shipping costs
Amazon will pay you the shipping credits when you ship any Amazon orders by yourself. The credit you will get is usually pretty low compared to the actual shipping rates for sending your items. Depending on the total weight and size of your package, you may spend more expensive shipping costs than what you receive from Amazon's shipping credit. It is recommended for you to visit Amazon for finding out the latest Amazon shipping credit chart.
Dropshipping Business via Amazon
As all of you know, Amazon has a lot of potential customers who are ready to buy anything from the website. Amazon offers a lot of benefits for people who pay the Amazon Prime membership fee. Because of this reason, many customers are willing to buy anything from this website. It can be a big opportunity for you, especially if you want to earn a significant amount of income by selling any items on Amazon.
If you don't have any products, you can consider doing the dropshipping business. This business allows you to promote other people's products to your customers. Then, you can simply promote any of these products on Amazon. When your clients buy anything from you, you are going to contact your suppliers for sending the orders to your clients immediately.
SaleYee dropshipping platform can be a perfect place for you who want to find the best dropshipping supplier for your needs. SaleYee.com has more than 30,000 unique products that are updated every day. Every order on SaleYee will be processed and shipped immediately. SaleYee.com offers free and fast delivery service for all customers. You can send any items to your customers without having to stock up in your inventory.
If you are looking for a good dropshipping supplier, SaleYee dropshipping platform can be a perfect option for you. This company is also available 24 hours every day. Its customer support is ready to help you solve any problems when your customers buy anything from your store. You can contact SaleYee for learning more about this company and how it is going to help any business owners on the market today.
Conclusion
Selling on Amazon will never have to be difficult for you. You only need to calculate all Amazon seller fees before you decide to open your store on this website. It is a good idea for you to target some people who have already paid the Amazon Prime annual fee. They are people who love buying any products from Amazon.
