What Is The Average Amazon Seller Fee?
The top online marketplace in the world, Amazon, is growing each day and is attracting people from all over the globe to at least think once about it. While Amazon’s business is seemingly attractive to many, they. Lost in its attraction, ignore the part where cost and effort come. If you are one of those, lost in allure. Let me correct you in the first place. Amazon business is neither easy nor cheap. Although Amazon offers two types of seller accounts, one is cheaper than the other. But one way or the other, there is a cost associated with it.
Not to mention all the things that come after signing in. From product listing, imaging and cataloging to Amazon PPC management, there is a cost attached to everything. And if you avail of some third-party Amazon account management services, it will only add to the sum. But no matter what, it is worth it. So if you are wondering what the average Amazon seller fee is? Let’s have a detailed insight into it.
2 Types Of Seller Accounts On Amazon:
There are basically two types of seller accounts on Amazon. Both are unique in seller fees and privileges that come with each.
1. Individual Seller Account:
Sellers who sign up for an individual seller account on Amazon don’t have to pay any fee for signing in. However, they have to pay 99 cents to Amazon for each sale. But there are some limitations that come with this account.
Limitations To Individual Seller Account:
Signing up for a seller account no doubt seems attractive as you don’t have to pay monthly or for signing up. However, it neither provides you the privileges a professional account has nor allows you permission for multiple things.
- An individual account means you cannot set your shipping cost. Amazon will set it up for you.
- You have no permission to deal in certain categories like Art, handbags, Jewellery, Luggage, Food, and more.
- No permission to provide gift wrapping.
- No permission to the bulk listing.
2. Professional Seller Account:
Sellers who choose a professional seller account on Amazon have to pay $39.99 for signing up and will continue to pay every month as a monthly subscription. However, they don’t have to pay each time an item is sold like in an individual account. But $39.99 is sometimes worth paying as it provides multiple privileges to sellers an individual account doesn’t offer.
Privileges Of Professional Seller Account:
Professional accounts provide sellers with privileges you can’t even think of having with an individual account (Within Amazon).
- Setting up a pro account means having eligibility to win the buy box
- Pro sellers have the ability to set their shipping rates (If dealing in BMVD) and have the ability to use Amazon Marketplace Web Services.
- Ability to have order management and inventory management with feeds, reports, and spreadsheets.
- Ability to add taxes to orders and calculate US sales.
- Ability to have listing features, offer gift services and run promotions.
Note: If you are an individual seller, you can still run promotions through Amazon PPC management provided by urtasker. This way you can drive more sales no matter if Amazon gives you the limelight as a pro seller or not.
4 Other types Of Fee Amazon Sellers Have To Pay:
1. Sale-Related Fee:
Depending upon How and What you are selling, you have to pay a fee that comes in three forms.
1. Referral Fee:
Whether you’re a pro seller or an individual seller, you have to pay a 15% or less (most of the time) referral fee each time you sell. And it keeps varying from item to item. However, if you are an individual seller, the fee will be added to 99 cents you have to pay for each item.
2. Variable Closing Fee:
This fee is for professional sellers dealing in BMVD as individual sellers don’t have the privilege to deal in BMVD. What it means is, if you choose to sell in the Media category, you’ll have to pay an extra $1.80 as a variable closing fee.
3. Refund Administration Fee:
If you sell an item but the buyer returns it after you have been paid for it. You will no doubt be given the referral fee back but you would have to pay $5.00 in the name of the Refund Administration fee. If not $5 you can also pay 20% of the applied referral fee.
2. Fulfillment By Amazon (FBA):
If you choose your fulfillment process as FBA you would have to pay a fee depending upon the two things
1. Size And Weight Of The Item:
You will have to pay a fulfillment fee based on the size and weight of the product you are shipping. If the item is lighter, the fee will be lower. If the item is heavier, the fee will be higher.
2. Storage Fee Per Month:
If you use Amazon warehouses to store your products, you’ll have to pay a fee for it based on the dimensions of the product. Moreover, if your items are being stored in an Amazon warehouse for more than 6 or 12 months, you will have to pay charges for it as well.
3. Fulfillment By Merchant (FBM):
Choosing FBM doesn’t come without cost. You have to pay just less than FBA.
No matter if you are an FBM seller, Amazon will set shipping costs ( individual sellers) and sellers won’t have control over it. So mindfully pricing or reprising is important or you can be seriously walloped by Amazon rates.
Professional sellers are privileged as always even here. They can set their shipping costs. However, if they are dealing in BMVD, they will be provided a shipping credit equivalent to the shipping rate that will keep varying with the shipping method they choose.
4. Other Minor Charges:
There are some other charges you will need to pay if
- You have above 100,000 products in your product listing.
- You deal in dangerous items.
- You sell textbook rentals.
- You want Amazon to pack your products in their boxes.
- You want Amazon to put barcodes on your items.
- Your products are not eligible for Refurbishing.
- You get a repack from Amazon in case Shopper returns your product.
Amazon not only charges a selling fee but many other fees that keep popping up in different situations. However, you can save yourself from paying many of these extra charges by taking the right Amazon account management services. For example, you can pack your products yourself, make sure customers get satisfied and do not return the product, and many other such things. Because most of the time the reason you miss out on such things is you don’t have good management. In addition to this, don’t rush to any decision about which account you should sign up for without deeply analyzing which one meets the needs of your business better. Because after all, whatever you choose, you will have to pay. So choose what works in your favor.