As an Amazon Seller, fees can seem like the bane of your existence. You work so hard to sell and market your products, only to see your profits hampered by endless fees. However, Amazon is the largest online marketplace in the world, and fees are just the cost of selling on Amazon and accessing millions of potential buyers.
And though Amazon fees may seem excessive, they are actually pretty reasonable. But if you’re not sure which selling fees on Amazon apply to your business, you may just feel frustrated about all the money being deducted from your payments. So, in today’s guide, we’re going to walk you through everything you need to know about Amazon’s fees for selling. But first, let’s take a look at the costs you can expect with different seller plans available on Amazon:
As of 2023, there are just two primary Amazon Seller plans:
Amazon charges referral fees whenever you sell an item on the platform. The fees vary depending on the product category and the item's selling price. As of 2023, referral fees are most often calculated as a percentage of the item's total sales price, including any shipping or gift wrap charges, but not including taxes.
The majority of referral fees land somewhere between 8% and 15%. However, there are some exceptions. Additionally, almost every category institutes a $0.30 minimum referral fee. Here are a few examples of referral fee percentages for some of the most popular categories:
Fulfillment by Amazon (FBA) refers to the program that lets Amazon store, pack, and ship each item on your behalf. The alternative is Fulfillment by Merchant (FBM), in which you pay certain Amazon FBM fees to manage the shipping on your own. Either way, you’ll have to pay fees to make sure that your products can get from storage to your customer’s doorstep.
Fulfillment by Amazon fees cover the cost of storing, packing, and shipping your products, as well as handling customer service and returns. These fees are charged per unit and vary based on the size and weight of the item. Here are the current ranges of fulfillment fees as of 2023:
Since the fulfillment fees are relatively straightforward, you probably won’t need an FBA fee calculator. However, you can use the Amazon fee calculator to see some of the most common fees applicable to your business.
Amazon's FBA Small and Light program is designed for fast-moving, small, and lightweight products that are priced under a certain threshold (typically under $7). This program offers reduced fulfillment fees compared to standard FBA, making it more cost-effective for sellers of qualifying items.
Here are the current ranges for Amazon Small and Light fulfillment fees:
Amazon FBA storage fees are charged for storing your products in Amazon's fulfillment centers. These fees are based on the volume (measured in cubic feet) of your stored products and are billed monthly. In 2023, the storage fees start at $0.83 per cubic foot, per month. However, keep in mind that Amazon charges more to store products during the “busy” season, which is October through December. During these months, you can expect to pay roughly 3x more for storage.
Also keep in mind that additional fees may apply in certain situations, such as long-term storage fees for items stored over 365 days, removal fees, and fees for optional services like labeling or packaging. For inventory that has been stored for 365 days or more, you will be charged $6.90 per cubic foot per month, or $0.15 per unit per month, whichever is greater. These costs are assessed in addition to the regular monthly storage fees.
In addition to referral fees, FBA fees, and storage fees, there are other fees that you should know about. Here are some common Amazon selling fees you might come across:
As you can see, Amazon's selling fees can be pretty complex. Tracking Amazon Seller fees without the right bookkeeping and integration software is nearly impossible. Fortunately, ConnectBooks offers an all-in-one platform designed specifically for Amazon sellers to manage fees, inventory, and financial data with ease. No more sifting through multiple spreadsheets or juggling a myriad of unintuitive tools. With ConnectBooks, you'll gain valuable insights into your business while saving time and resources.
Do you want to learn more about managing all of your eCommerce channels in one place? If so, reach out to the experts at ConnectBooks today!