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How Much Does It Cost To Be An Amazon Seller? Find Out Here!

how much does it cost to be an amazon seller?

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Becoming an Amazon seller can be an excellent way to start or grow a business. Amazon has millions of customers. Becoming a seller on the platform can expose your products to a broad audience. However, before you begin selling on Amazon, it’s essential to understand the costs involved. This blog post will discuss the various fees and costs of being an Amazon seller. In addition, how much does it cost to be an Amazon seller?

How Much Does It Cost to Be an Amazon Seller? Find Out Here

Firstly, you must choose a selling plan to become an Amazon seller. Amazon offers two plans: the Individual plan and the Professional plan. The Individual plan best suits small merchants.

The Individual plan does not have a monthly fee, but you will need to pay a fee of $0.99 per item sold. On the other hand, the Professional plan costs $39.99 per month, but there is no fee per item sold. Therefore, it’s essential to consider the number of items you plan to sell when choosing a plan. If you plan to sell at most 40 items per month, the Individual plan may be the best option. However, if you plan to sell more than 40 items monthly, the Professional plan may be more cost-effective.

In addition to the monthly plan fee or the per-item fee, several other fees are associated with selling on Amazon. One of the most significant fees is the referral fee. A fee is a percentage of the item’s sale price and varies depending on the item’s category. 

What are FBA Storage Fees?

FBA (Fulfillment by Amazon) storage fees are charges imposed by Amazon for the storage of a seller’s inventory in Amazon’s warehouses.

FBA storage fees are typically charged based on the amount of space a seller’s inventory takes up in an Amazon warehouse over time, usually calculated monthly. The fees can vary depending on the time of year, the item’s size, and whether it is standard or oversized.

Amazon charges both long-term storage fees and monthly storage fees for FBA inventory. Long-term storage fees are charged twice a year for items in an Amazon warehouse for more than 365 days. Monthly storage fees are charged every month for all items stored in an Amazon warehouse.

What are Amazon Seller Shipping Rates?

Amazon Seller Shipping Rates are the rates that Amazon offers sellers for shipping their products to customers. These rates are often lower than the standard shipping rates that a seller must pay to ship their products independently.

Amazon offers two types of shipping rates to its sellers:

  • Standard shipping rates – These rates are available to all sellers and are based on the weight and size of the product, as well as the shipping destination.
  • Amazon Partnered Carrier– These shipping rates are available to sellers who use Amazon’s partnered carriers for shipping. Amazon has partnered with several carriers, such as UPS, FedEx, and DHL, to offer discounted rates to sellers for shipping their products.

The Amazon Partnered Carrier program allows sellers to ship their products at discounted rates and with pre-negotiated shipping terms. By using this program, sellers can save on shipping costs, streamline their shipping process, and provide better shipping options to their customers.

Sellers can access these shipping rates through their Seller Central account, and they can choose to offer free shipping or charge a shipping fee to their customers based on these rates.

What are Amazon FBA Size Tiers?

Amazon FBA (Fulfillment by Amazon) size tiers are categories that Amazon uses to determine the fulfilment fees for sellers based on the size and weight of their products. Amazon has divided products into two categories: Standard-size and oversized.

The Standard-size tier includes products that meet the following criteria:

  • Products weigh less than or equal to 20 pounds.
  • The longest side of the product is less than or equal to 18 inches.
  • The shortest side of the product is less than or equal to 8 inches.
  • The median side of the product is less than or equal to 14 inches.

What are Amazon Seller Plans?

Amazon offers three seller plans to businesses and individuals looking to sell products on their platform:

  • Individual Seller Plan: This plan is suitable for those who plan to sell a few items or test the waters of selling on Amazon. This plan has no monthly subscription fee. Instead Amazon charges a per-item fee of $0.99 for each sale.
  • Professional Seller Plan: This plan is suitable for businesses and individuals who plan to sell more items on Amazon. The monthly subscription fee for this plan is $39.99, and it provides access to advanced selling tools, bulk listing and reporting tools, and the ability to create your listings for products that aren’t already on Amazon.
  • Enterprise Seller Plan: This plan suits larger businesses with high sales volumes. The fees for this plan are negotiated on a case-by-case basis and include features such as a dedicated account manager, customized shipping rates, and custom integration options.

What Does Amazon FBA Startup Cost?

The startup costs for using Amazon’s FBA (Fulfillment by Amazon) program can vary depending on several factors, including the size and weight of your products, the amount of inventory you plan to store, and the shipping costs to send your products to Amazon’s fulfilment centres. Here are some potential costs to consider:

  • Product costs: This includes the cost of purchasing the products that you plan to sell on Amazon.
  • FBA Fees: Amazon charges fees for using its FBA service, including fulfilment fees, storage fees, and optional services like labelling and removal.
  • Shipping Costs: Shipping costs can vary depending on the location of your supplier and the weight and size of your products. Amazon offers discounted shipping rates through its Partnered Carrier program, but shipping costs can still be a significant expense.
  • Amazon Seller account fees: If you are not on the Individual Seller Plan, there is a monthly subscription fee of $39.99 for the Professional Seller Plan.
  • Marketing and Advertising: While not strictly necessary, investing in marketing and advertising can help your products stand out on Amazon and drive more sales.

What is the Amazon Referral Fee by Category?

Amazon charges referral fees to sellers. It is applied for each item sold on its platform. These fees vary by category and are calculated as a percentage of the item’s sale price, excluding any taxes or shipping costs. Here are the current referral fees by category for Amazon.com (as of my knowledge cutoff of 2021):

  1. Amazon Device Accessories – 45%
  2. Automotive & Powersports – 12%
  3. Baby Products (excluding Baby Apparel) – 15%
  4. Beauty – 6%
  5. Books – 15%
  6. Camera & Photo – 8%
  7. Cell Phone Devices – 8%
  8. Clothing & Accessories (excluding Jewelry) – 17%
  9. Collectible Books – 15%
  10. Consumer Electronics – 8%
  11. DVD & Blu-Ray – 15%
  12. Electronics Accessories – 15%
  13. Furniture & Decor – 15%
  14. Grocery & Gourmet Food – 15%
  15. Health & Personal Care (including Personal Care Appliances) – 8%
  16. Home & Garden (including Pet Supplies) – 15%
  17. Industrial & Scientific (including Food Service and Janitorial & Sanitation) – 12%
  18. Jewellery – 20%
  19. Kitchen – 15%
  20. Luggage & Travel Accessories – 15%
  21. Major Appliances – 15%
  22. Music – 15%
  23. Musical Instruments – 12%
  24. Office Products – 15%
  25. Outdoors – 15%

What is Amazon Global Selling Fee?

Amazon Global Selling is a program that enables sellers to offer their products to customers in different countries, allowing them to expand their business globally. Amazon charges various fees for using the Global Selling program, including the following:

  • Referral Fee: It is a percentage of the item’s sale price (excluding taxes and shipping charges) and varies by product category.
  • Variable Closing Fee: A Variable Closing Fee is charged when an item in a specific category is sold. This fee varies based on the item’s category.
  • Currency Conversion Fee: This fee is charged when Amazon converts the seller’s earnings from a foreign currency to the local currency of the seller’s account.
  • A Cross-Border Fee: It is charged when an item is sold and shipped across borders, such as from the US to another country.
  • Export Fee: This fee is charged for each unit sold in a specific country and is used to cover the cost of customs clearance.

What is Amazon FBM Fee?

FBM (Fulfillment by Merchant) sells products on Amazon, where the seller is responsible for storing, packaging, and shipping the products directly to the customer, in contrast to FBA (Fulfillment by Amazon), where Amazon takes care of these tasks.

What is the Amazon Listing Fee?

Amazon does not charge a specific listing fee for most product categories. Instead, sellers are charged a referral fee when their item sells. It varies by product category.

However, some categories on Amazon do have additional fees associated with listing items. For example, in the Media category (books, music, movies, and video games), a fee of $0.99 per item is listed. In addition, the Collectible Books category has a fee of $0.60 per item listed.

Also, Amazon offers a program called Amazon Handmade, specifically for handmade products. A $39.99 monthly subscription fee for using this program includes access to tools and services for listing and selling handmade items.

While Amazon does not charge a listing fee for most product categories, additional fees may be associated with listing items in specific categories or using certain programs.

What is the difference between Amazon Individual vs. Professional Selling Plan?

Amazon offers two different selling plans for sellers: the Individual Selling Plan and the Professional Selling Plan.

The Individual Selling Plan is designed for sellers who are just starting and have few products. With this plan, sellers do not pay a monthly subscription fee but instead pay a per-item fee of $0.99 for each item sold on Amazon. For those looking to sell fewer than 40 items per month, this plan is the perfect fit.

The Professional Selling Plan is designed for sellers with more extensive inventory and plans to sell more than 40 items per month. With this plan, sellers pay a monthly subscription fee of $39.99 and do not have to pay the per-item fee of $0.99. This plan also includes additional features such as the ability to create listings in bulk and access to Amazon’s advertising tools.

FAQs:

How much does it cost to be an individual seller on Amazon?

As an individual seller on Amazon, you do not have to pay a monthly subscription fee, but you will be charged a per-item fee of $0.99 for each item sold on Amazon. This fee is charged on top of the referral fee.

Does it Cost to be an Amazon Seller?

Yes, there are costs associated with being an Amazon seller. The specific costs depend on the type of seller account you have (Individual or Professional), the product categories you sell in, and the services you choose to use.

Do you have to Pay to Become an Amazon Seller?

There is no cost to sign up and create an Amazon seller account. However, as an Amazon seller, there are costs associated with selling on the platform, such as referral, fulfilment, storage, and advertising fees. Additionally, there may be additional fees if you want to use certain services like Amazon’s Global Selling program or Amazon’s FBA (Fulfillment by Amazon) service.

What is the 39.99 Amazon Charge?

The $39.99 Amazon charge is the monthly subscription fee for the Professional Selling Plan, which is one of the two selling plans offered by Amazon.

The Professional Selling Plan is designed for sellers with more extensive inventory and plans to sell more than 40 items per month. With this plan, sellers pay a monthly subscription fee of $39.99 and do not have to pay the per-item fee of $0.99. This plan also includes additional features such as the ability to create listings in bulk and access to Amazon’s advertising tools.

Do Individual Sellers make money on Amazon?

Yes, individual sellers can make money on Amazon. However, individual sellers sell a relatively small number of products, usually less than 40 items per month, and do not pay a monthly subscription fee.

Conclusion:

We hope this blog provides complete insights into how much it costs to be an Amazon seller. Some costs are associated with being an Amazon seller, but the benefits outweigh the investment. The exact cost will depend on product category, item price, and shipping distance. If you want to expand your business and reach a larger audience, get the services of Urtasker. We can help you grow your business quickly.

 

Picture of Zeeshan Riaz <br> <span class="designation">Chief Operating Officer</span>
Zeeshan Riaz
Chief Operating Officer

With education and experience in IT. Law and E-commerce industry, I have successfully helped more than 250 E-commerce businesses worldwide to reduce their operational cost with cutting edge eCommerce Marketing Services. I do manage a team of more than 250 people team which includes Amazon, eBay, Shopify, website development, SEO and SMM experts.

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