Amazon sells products in over 13 countries, with over 81 fulfillment centers worldwide, selling millions and millions of products from millions of sellers every day.
If you sell online you most likely would benefit from selling through Amazon -but understandinghow much the program costs invariably affects your store fit.
How Much Does it Cost to Sell on Amazon?
Amazon Marketplace sellers pay different amounts to sell on Amazon.com depending on the selling program they choose, and what categories the products they sell fall under.
Amazon charges retailers a Referral Fee, Variable Closing Fee which is subtracted from the overall sale (including selling price, shipping and other charges such as gift wrap).
Below are the seller fees for major ways sellers can sell on Amazon.com.
Amazon Selling Fees
Amazon charges sellers a percentage of each sale they make on the marketplace. It’s free to list products on the Amazon Marketplace but sellers incur fees as a percentage of the overall sales they make, which vary based on their product categories.
Seller Amazon fees vary based on the seller program Marketplace sellers choose. Here are the two seller programs for Amazon:
If you sell more than 40 products a month then the Pro Merchant Program is a no-brainer.
Amazon’s Referral Fee- or how much Amazon charges per each sale (%) is determined by its cost per acquisition (CPA) model and inventory category. Here is a breakdown of Amazon’s referral fees by category:
Amazon incurs revenue from an item sold from your store, and charges the Marketplace shopper the price of the item, shipping and other related charges (e.g. gift wrap). The seller receives a portion of this total excluding the referral fee (% of sale), and other fees based on their seller account ($0.99/ per item for Individual sellers and $39/month for Pro Merchants).
Amazon FBA & Sell on Amazon Fees
Third party merchants selling on Amazon can choose to leverage Fulfillment by Amazon. These sellers send their inventory to Amazon, and sell items on the Marketplace. Fulfilled inventory from Amazon is sorted, packaged, and shipped by Amazon.
- Fulfillment by Amazon (FBA) – Sellers leverage Amazon’s fulfillment for products sold on the Amazon Marketplace
- Using your own fulfillment (MFN)– Sellers handle fulfillment for their products sold on the Amazon Marketplace
Fulfilled By Amazon (FBA) charges sellers 8-15% per each sale in addition to FBA Fees. Selling on Amazon charges referral fees but only charges storage fees if you’re using FBA.
Amazon’s minimum fee is relatively new (May 2014) and affects 21 categories with a $1 minimum fee. For example if if you sold a $5 product (before May) with a 15% fee, Amazon would charge a $0.75 fee. That fee is now $1 (the minimum).
If you’re unsure as to whether you should be selling on Amazon through Amazon.com, or which fulfillment option to choose, check out this resource.
Stay tuned for more tutorials on how to Sell on Amazon!
For more information on how to get started selling on Amazon, check out these upcoming posts: