How much does it cost to sell on Amazon?
Amazon, which is the most successful platform with electronic commerce services, attracts a large number of buyers all over the world. However, the number of allured sellers is no less. Nowadays, the Amazon platform is not just a godsend for users who are looking for some products and services. This organization is a great place for everyone who wants to promote, advertise, and sell the produced goods. It is possible to cooperate with Amazon due to the special program FBA with the system of removal of orders and Amazon FBA removal fees.
What Is FBA and Why You Need It
FBA (Fulfillment by Amazon) is a special system, which allows people all around the world to use the Amazon platform as a marketplace and quality business assistant. The Amazon Corporation provides the FBA program to allure sellers and expand the list of products and services, which are offered on the platform. FBA is beneficial for both sellers and Amazon. Sellers receive the best marketplace with a large number of visitors, while the corporation receives a chance to attract new potential customers and raise its income due to the increase of offered goods.
Of course, the FBA program is not a charity for sellers. When it comes to business, there is nothing for free. So, everyone who wants to join the Amazon marketplace should consider all necessary expenses.
Expenses on Selling on Amazon
It is important to understand that the cost of selling service on Amazon depends on many factors such as:
- your selling strategy
- peculiarities of the product category
- fulfillment plan
- number of goods for sell
- other aspects
This characteristic of the FBA program cost means that you can regulate the cost of selling on Amazon on your own in accordance with your available budget.
The Amazon Corporation provides 4 types of main FBA costs for sellers. So, there are necessary expenses on:
- selling plan
- referral fees
- fulfillment fees
- other costs
Selling plan
The Amazon site proposes two types of selling plans: individual and professional. The Individual plan costs $0.99 for one product sold, and the Professional plan costs $39.99 monthly regardless of the number of sold items.
The Individual strategy is suitable for those who sell fewer than 40 goods a month, still decide what to sell, or do not plan to promote and advertise products.
The Professional strategy is a perfect variant for you if you sell over 40 units per month, plan to advertise goods, want to sell goods of restricted fields, intend to use enhanced selling instruments such as APIs and reports, and qualify for top placement on product detail pages.
Referral fees
The company charges a referral fee for each unit sold. The amount depends on the certain product category. The majority of referral fees are from 8% to 15%.
For every category, there are determined referral fee percentages and referral fee minimum costs. The minimum cost for almost every item is $0.30. For instance, the percentage for cell phone devices is 8%, 3d printed goods - 12%, books and musical instruments – 15%, Amazon device accessories – 45%, etc.
Fulfillment fees
The cost of goods shipping depends on whether you fulfill your orders on your own or use Fulfillment by Amazon.
If you choose the FBA program, your expenses depend on the size tier, max dimension, shipping weight, and packaging. The smallest orders cost $1.97 and $2.39.
Other costs
The list of additional selling fees includes inventory payments, rental book service fees, high-volume listing fees, and refund administration payments.
Moreover, sometimes, sellers want to use additional optional programs such as advertising and promotion system, inventory storage service, Amazon-partnered carrier program, and premium account services.
