How Much Does it Cost to Sell on Amazon in 2023?
Learn from the masters and cracks the code to festive season sales success with Fynd Platform's Festive Readiness Guide
You must invest time and effort into the competitive analysis to maximise your Amazon sales. It includes the price and number analyses, competition, and the Amazon landscape. Knowing these factors will help you determine your selling price and create a strategy that works.
It's no secret that third-party sellers account for the bulk of the growth in Amazon. The charges that the company pays marketplace merchants including commissions, fulfilment fees, shipping costs, and other services for sellers-totalled more than $20.2 billion in its most recent quarter, an increase from $16.5 billion in the previous year.
It doesn't matter if you're already selling on Amazon or are considering the possibility. There are some coasts to incorporate into your selling strategies to assess the viability of your market-based business. Here's an overview of the firm's current fees for selling.
You can sell supplements on Amazon or build your website using the Fynd platform. This article will add information on manufacturing and selling channels. It is vital first to understand the market for supplements.
Costs of Selling on Amazon TL/DR
1. Monthly subscription
fees Professional sellers (selling more than 40 products per month) pay $39.99 monthly. Sellers who are individuals (selling smaller than forty items in a month) can skip a month-long subscription cost.
2. Per-item charges
Professional sellers don't need to pay per-item costs. However, individual sellers have to pay $0.99 per item sold.
3. Shipping charges
Self-fulfilled purchases Amazon shipping costs apply to media items (books, music, videos, DVD, software as well as video games) that are sold by professionals as well as to all things that an individual sells.
These prices are determined by the product's category and the shipping option that the buyer selects. Sellers who fulfil orders on Amazon must pay charges to perform, store, and other optional services and selling costs.
4. Referral fees
The seller pays an amount for each item sold. Several categories of items are subject to a minimum per-item referral fee, meaning sellers must pay the referral fees, the per-item minimum price, or the higher amount, whichever is greater.
5. Variable closing costs
Individuals and professionals pay a variable fee for each item of media sold.
6. Monthly Subscription Fees
When you sign up for a seller account, the first Amazon seller fee you will encounter is correct at the beginning. The Professional account or the Individual account will be available. It can make a massive difference in the future.
What is Amazon's take on sellers? Amazon's Professional seller account costs $39.99 per month.
These perks come with the fee:
- There is no per-item charge for sold products.
- Inventory management using feeds, spreadsheets, and reports
- Management of orders with reports and feeds
- Amazon Marketplace Web Service allows you to perform API functions (e.g. uploading feeds, receiving reports, etc.
- You can set shipping rates if you sell items in Books, Music, Videos, & DVDs (BMVD).
- You can offer special listing features such as gift services and promotions.
- Passing eligibility to win the Buy Box.
- Ability to calculate US sales and add taxes to orders
- You can upload multiple products simultaneously.
- You can offer gift wrapping for free.
However, if you sell less than 40 items monthly, the Professional seller plan is not for you. The (free) Individual seller plan charges $0.99 per item sold. You may pay more for your subscription than for the items sold. These are just a few distinguishing features that make Individual accounts unique:
- There is no monthly subscription fee. Sellers pay $0.99 for each item.
- Amazon sets shipping rates for all products.
- We are unable to offer gift wrapping.
- Listings can be uploaded manually, not in bulk.
- Exclusion from selling in different categories such as Jewelry, Shoes and Handbags, Art, Food, and Luggage.
Next, you will encounter fees for items sold. Let's now dive into the sub-types.
1. Referral fees
This fee is the Amazon commission you pay each time you sell an item on their marketplace. The referral fee is usually a flat rate of 15% to 15%, but it can vary depending on the product category.
Selling in the Extended Warranties Protection Plans & Service Contracts category will result in a 96% referral fee. The referral fees for other categories are lower. Amazon Device Accessories is the exception, charging a 45% fee.
You'll pay $0.30 for a lower referral fee. Some exceptions to the minimum referral fee include books, collectable books, entertainment collectables, fine art, gift cards, gourmet food, music, extended warranties, protection plans, and service contracts.
To make it more interesting, specific categories have different referral fees. The calculation of percentages is according to sales dollars. For example, Sports Collectibles charges 20% if the total sale price is $100 or less. It drops to 10% if it is $100-1,000. It goes down to 6% if you sell more than 1,000 items. Referral fees are a common practice in Amazon's most popular categories.
2. Variable Closing Charges
You can sell in the Media category (BMVD software, computer games and video games), etc. Then, pull out your wallet to pay the $1.80 variable fee.
3. Refund Administration Fee
You have just closed a sale of widgets. After receiving the payment, Bob, the Buyer, decides he doesn't want the item and returns it. In this case, they will refund your money and the referral fee, but you'll also need to pay a refund administration fee. This fee is $5.00 or 20% of the applicable referral fee.
Miscellaneous Fees: Before you think you are free from fees, consider some other fees before you put up your products on Amazon.
- The high-volume listing fee is applicable if you have more than 100,000 products listed. The monthly flat fee for eligible items is $0.005 per month. This fee is paid in addition to your FBA storage fees.
- Extra fees are chargeable for dangerous items (except clothes). The fee is $0.06 to $0.16 per standard-sized unit. The fee increases slightly if the products are hazardous articles-clothes.
- Amazon will charge $5.00 per textbook rental if you are selling them.
- FBA sellers must ship their items to Amazon for fulfilment. Sellers usually pack their items in boxes. If you wish Amazon to use your boxes for shipping, the cost is $0.15 per unit (November to December) and $0.10 for the rest of the year.
- Amazon offers a Refurbished "category", where they refurbish and resell old products. You can get this service for free, but it is possible to pay a fee if the product is not eligible.
- Amazon sellers may only sometimes return their items in the original packaging. Or they might choose to use a different container. Amazon will charge a fee to repackage your item if this happens.
- FBA sellers have the added benefit of Amazon handling most fulfilment, including labelling and preparing your products. This perk is available at $0.50 - $1.20 for standard sizes units and $1.00 - $2.20 if you order larger units. Multi-channel fulfilment sellers can also obtain (custom-made) packing slips for $0.07 per box. Amazon can apply barcodes on your products at fulfilment centres for $0.30 per unit.
It is the highest cost that comes with selling on Amazon is inventory. While you do not need a minimum amount of inventory to start selling, you must cover the costs of returned goods. Other expenses include advertising costs and packaging and storing orders. Additionally, you must purchase and maintain various tools for handling and tracking orders.
You may not see a significant ROI from selling on Amazon immediately. Advertising campaigns and building brand awareness can take time. Also, your store may need to be updated or modernised.
You may also need to upgrade your skills or spend money on new technology. Ultimately, the startup costs on Amazon will depend on the size and seasonality of your products.
You may be hesitant to invest in expensive inventory as a new seller. However, testing some products and seeing which ones sell is wise. Invest at least $500-$1000 in your first inventory.
You can also invest in videos and photography to increase your marketing efforts. Ensure your products have high-quality photos to grab customers' attention and drive sales.
Besides initial inventory, you will also need to buy products. You'll get discounts if you order in bulk. However, most manufacturers have minimum order amounts of less than thousands of units. If you plan your costs well, this can still be profitable despite the startup cost.
Amazon charges a commission for each item sold. This fee varies, but it's usually 15% or less of the price. This fee will go down as your sales increase. Depending on the product category, the commission fee is also different. However, it is generally around $0.99 per item.
Other fees include listing products on Amazon, inventory storage, and return processing, usually a percentage of the total sales. Amazon also requires a fee for referrals.
Be aware that Amazon gets a share of each product sold. It can be as low as 6 percent (personal computers) up to 45 percent (Amazon accessory devices). However, referral charges for media items are 15 percent of the item's overall value, not the product's price.
The minimum referral fee in most categories (applied on an item-by-item basis, unless stipulated) amounts to $1 ($2 for jewellery or watches). It is not a minimum fee for referrals for media products since they have additional costs.
REFERRAL FEE PERCENTAGE
MINIMUM REFERRAL FEE
Amazon device accessories
baby products (excl. apparel)
Camera and photograph
Cell phone devices
Electronics and accessories
15% off the first $100 and 8% on every subsequent purchase
Furniture and decor
Garden and home (incl. pet products)
15% of the first $300, and 8% on every subsequent purchase
Instruments for music
Computer/video games, software, and games for computers
Sports (excl. collectables)
Tools and home improvements
15%, excluding the essential equipment tools for power
Games and toys
Unlocked cell phones
Video and DVD
Video game consoles
3D printed items
Powersports and Automotive
12.5%, except 10% for wheels and tires products
Accessories and clothing
Food and groceries, as well as gourmet
15 percent or 8% for items that cost less than $15.
Personal and health care (incl. personal care appliances
Scientific and Industrial
20% off the initial $250 and 5% on every subsequent purchase
Travel accessories and luggage
Sunglasses, handbags, shoes
15% or 18% on items that are priced over $75.
16% on the initial $1,500 and 3% after that
Sellers are also required to must pay a closing cost of $1.80 on every sale of media.
Refund of fees on returns
Suppose you decide to refund customers for an order you've paid. In that case, Amazon will refund you the amount of the referral fee you paid, less the applicable refund admin fee ($5 or 20 percent of the appropriate amount of the referral, which is lower).
Order fulfilment charges
If you decide to go with FBA (Fulfillment By Amazon (FBA) and choose to use FBA, you'll be required to pay various fees on top of the costs we have already discussed. The new FBA US charges, which are outlined below, took effect in February. 22.
Small (1 1 lb. or less)
Large (1 1 lb. or less)
Large (1 1 lb. to 2 lbs. )
Large (over 2 lbs. )
$4.71 + $0.38/lb. Above the first 2 pounds.
$8.13 +$0.38/lb. above the first 2 pounds.
$9.44 +$0.38/lb. over the first 2 lbs.
$73.18 +$0.79/lb. over the first 90 lbs.
$137.32 +$0.91/lb. above the initial 90 lb.
+ $0.40 each for items of clothing
Credits for shipping
When you're an experienced vendor that fulfils your orders, Amazon will offer you a shipping credit for each sale to cover your expenses, but it's essential to know the cost to ship your item.
A company that opts for a standard shipping cost supposedly allows Amazon to determine the price. If they set it below the cost (which is possible, particularly when it comes to heavier products), the cost will be a part of your profit.
If you're an Amazon seller, you've probably noticed the recent increase in storage fees. You can reduce these fees. Amazon sellers who use the FBA or FBM service must provide their goods to a warehouse for Amazon to store. This service charges sellers for storing and shipping your items. You'll also have to pay more storage fees if you sell dangerous goods on Amazon.
If you want to avoid paying storage fees, it's best to get rid of unsold products quickly. The Recommended Removal Report informs you that the storage fee kicks in six weeks before the cutoff date. If you have several products to remove, you can use an inventory management strategy to keep your inventory minimal.
If you need to figure out how much storage fees will cost, Amazon has a tool that helps you estimate the cost of storage and fulfilment. These fees are calculated based on volume, so you must know the volume of each item you plan to sell. This way, you can estimate the amount you'll spend each month.
Amazon also allows customers to keep their inventory outside of its warehouses. It is an excellent option for people with lower-volume inventories. This way, they can ship their inventory quickly to Amazon warehouses without worrying about running out of stock. However, remember, if you sell a high-demand product, you should order sufficient stock for six months. This way, you can avoid the costly process of asking for your products back when your inventory is low.
Amazon charges different rates for storage depending on the size and weight of your products. Oversized items take up more space. They're also more complicated to store, so their storage fees are calculated based on cubic feet. Amazon charges these fees every month. For standard-sized products, you can expect to pay six dollars a month.
To avoid excess storage fees, you should keep your inventory moving quickly. Amazon also charges an extra fee for holding inventory over 365 days. Therefore, you should carefully manage your inventory before submitting it to Amazon.
The most important thing is the bottom line.
Half of the products sold on Amazon originate from sellers on the marketplace, and more than 140,000 smaller and mid-sized companies achieved more than 100,000 in sales last year.
However, selling on Amazon isn't without cost. Additionally, 82% of the website's sales are processed via its buy box. That's why it's crucial to be aware of the costs associated with the purchase and invest in appropriate tools to help you sell more and make an income.
The automated Amazon price will help you stay on your game all day. It combines powerful algorithms and customised seller rules to ensure you consistently sell at the highest price, not the lowest. Input your costs, calculate the net margin for every SKU and then establish price limits to ensure that you profit from every one of your sales.
Repricer.com is the most potent Amazon repricing program available. It allows you to react immediately to changes in the market and keep you ahead of your competition. Get a trial for free today, and you can win your Buy Box.
Amazon is the most popular e-commerce platform, accounting for over 40 percent of all online sales. Additionally, small-to-midsized companies (SMBs) generate almost 60 percent of online retailers' total sales, so many companies are contemplating selling their products on Amazon. What are the costs to sell on Amazon, however?
A difficult issue. Amazon seller fees can vary according to the price, weight, category, and seller's shipping services plans, seller plans, and order fulfilment process.
Simply put, you cannot give a precise number to the selling costs on Amazon. However, you can use the following guide (and it's a table) to see the various Amazon charges for sellers.
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What price will it cost to sell your product on Amazon?
Amazon seller fees are contingent upon more than 10 aspects, including the seller's account type. Individual sellers pay $0.99 per item, and professionals are chargeable $39.99 per month.
Both types of accounts are subject to a closing fee variable of $1.80 for each media product sold, and the percentage of referral fees can range between 6% and 96% for each item sold. Other Amazon seller fees vary based on the seller's fulfilment and shipping preferences.
Summary Table: Amazon Seller Fees
If you're searching for an easy and quick reference to Amazon seller charges, you've found it. This table includes every cost that one incurs during the selling process on Amazon. Take a look!
Amazon Seller Fees
Amazon seller plan
$0.99 per item in the Individual Selling Plan
$39.99 monthly for the Professional Selling Plan
$0.00 in exchange for Selling Services to sellers
$0.99 per product for Individual Selling Plan customers
Fees for service book rentals
$5.00 per textbook rental
High-volume listing fees
$0.005 per month for the applicable ASINs
Refund administration fees
The lesser in the amount of $5.00 or 20 percent of the referral fee per return
Variable closing costs
$1.80 per media item
Selling Service charges
20% on services up to $1000. 15 percent for services exceeding $1000
15% discount on services purchased through an ongoing subscription
Minimum referral fee
$0.30 minimal per piece
Percentage of referral fees
From 6% to 96% for each item, based on the item category
Individual Selling Plan
$3.99 to $14.95 for domestic orders
$16.95 to $46.50 for international orders
$0.50 or $0.99 per pound of weight over the limit
Professional Selling Plan
Set by the seller
Fulfilment via Amazon (FBA) charges
Storage for inventory
$0.69 up to $2.40 each cubic foot for a month of items that aren't dangerous
$0.99 or $2.43 in cubic feet per month for hazardous products
Long-term storage cost (LTSF)
$6.90 per cubic foot per month, or $0.15 per unit per month
$2.41 or $137.32 per unit
$0.39 up to $0.91 per pound of weight over the limit
$0.40 each for clothing and $0.11 in units for items using lithium batteries
small and light Fees
$0.80 per item for orders smaller than or equivalent to $5.00
$1.00 per item for orders that exceed $5.00 but are less than $7.00
Packing and picking
$0.75 per unit
$0.11 per ounce
$0.25 minimum per unit
Multi-Channel Fulfillment (MCF) fees
$5.85 from $143.30 per unit
$0.39 up to $0.92 per pound of weight over the limit
The guide to Amazon charges for sellers
If you choose to sell your products on Amazon, you'll face several different Amazon seller charges, such as: Although you can begin on your Individual Selling Plan, the Professional Selling Plan is essential for those who want to make significant revenue and sales through Amazon. It will make starting your journey with the platform a lot easier and allow you to qualify to buy the Purchase Box on pages for products.
Selling Service fees
For companies in the home-based service industry, Amazon also offers a platform to attract and earn new leads. Its selling services on the Amazon program permits verified and vetted companies to attract and locate new customers for no upfront cost.
You may also choose and select your leads. You can decline the request if you get a job request that doesn't match your timetable. If another company can take on the job, this option lets you focus on the most profitable leads for your company.
The Amazon seller fee is only applicable exclusively to individual Selling Plan users. For each item purchased, Individual Selling Plan users will be charged Amazon $0.99. If you're a current Professional Selling Plan participant, Amazon waives this fee.
Amazon offers individuals who purchase the Plan and Professional Selling Plan users a fee for referrals. The reason for this is it is the case that Amazon introduces or refers customers to your company and products via its website and its brand name. For each item sold, the company pays the fee for referrals.
The amount you pay for referrals depends on the item's referral fee percentage and minimum referral fee. Amazon will charge whatever amount is higher on your credit card.
Service fees for rental books
The companies that offer rental books, such as college textbooks, must pay the $5.00 fee for each textbook rental. Consider Amazon's selling fees when pricing textbooks and setting shipping rates since the cost will increase in time.
High-volume listing fees
Amazon has a massive catalogue of products. This is why it charges a high volume price for listings which is $0.005 per ASIN per month. However, only some sellers are eligible for the high-volume listing fee.
Refund administration fees
The refund administration fee only applies to sellers who offer a refund to a customer who has placed an order once they have received the payment through Amazon.
This selling fee is why Amazon will refund the commission after subtracting the administrative fee for refunds. The fee for refund administration will always be less than the sum of $5.00 or 20 percent of the referral fee.
When considering the price of selling your products on Amazon, shipping is one of the most discussed topics. Shipping costs vary and depend on your product, delivery address, seller plan and order fulfilment solutions, and much more. The selling plan you choose will establish the standard for your shipping expenses:
- Individual Selling Plan: Your business pays set rates for shipping your goods through the Individual Selling Plan. Prices vary between $3.99 and $14.95 for domestic purchases and $16.95 up to $46.50 for international customers. If you are overweight in the type of shipment you have selected, the cost will be $0.50 to $0.99 for each pound that exceeds the weight limit.
- Professional Selling Plan: With the Professional Selling Plan, your company decides on the shipping cost. The flexibility to select makes it vital for your company to study competitors' prices and set prices that don't discourage customers from making an order.
Fulfilment via Amazon (FBA) costs
Amazon (FBA) is an extremely popular logistics, shipping, and customer service option for businesses that are on Amazon.com. Although it is often a good option, FBA does include several different costs. These Amazon seller charges include:
For storage of your goods, Amazon charges the following monthly storage charges per cubic foot.
- $0.69 up to $2.40 for items that are not dangerous
- $0.99 or $2.43 for hazardous products
The price depends on your unit size (either more oversized or standard) and the season. Prices from October to December vary between $1.20 to $2.40; for January to September, it is $0.48 to $0.69 for each cubic foot.
Amazon also has a long-term storage cost (LTSF), a charge for objects stored for over a year. If you store your items for more than one calendar year, Amazon charges $6.90 for each cubic foot, or $0.15 per square foot, depending on which is more significant.
If you are willing to sell on Amazon, remember that inbound shipping costs can be expensive. Fortunately, there are ways to cut these costs. First, you can optimise your listing workflow to reduce the number of shipping costs. If you do this, you can save money on shipping and storage.
There are two types of inbound shipping options available to FBA sellers. One option is shipping your inventory to Amazon, while the other is shipping the inventory yourself.
When you ship inventory to Amazon, they decide where based on demand. You can also opt for Inventory Placement Service, which Amazon will split into multiple shipments.
Another way to cut shipping costs on Amazon is to use a partnered logistics company. A logistics company with Amazon can reimburse you for lost or damaged packages.
However, you must provide proof of insurance, documentation, and a Bill of Lading (BOL). Even with these partnered logistics companies, you should know that getting the reimbursement you deserve is complex.
You may also need to pay for a PPC ad if you sell on Amazon. You can pay this fee with a credit card or balance on your Amazon account. The amount you pay for this service is called the Principal Ads Payment Charge. You must also pay for additional taping on your items if they require it. You may pay extra fees for this service depending on the shipment size.
Aside from the fees, Amazon has several fulfilment centres that can help you save on shipping. Depending on the number of products you sell, the service can save you considerable shipping.
The company also has a free listing service, so you do not have to pay fees unless your product sells. The fees that you pay Amazon depend on your membership package and location. The charges vary depending on required services, such as packing, storage, and preparation.
Whether you use a fulfilment centre or not, having a reasonable estimate of the shipping cost for your items is vital. The costs can vary greatly, but the fees should be only a tiny percentage of your total inventory. If you need to ship a large volume of products, it will cost you around $0.50 per pound.
If you're selling on Amazon, you may wonder how much the sales taxes will cost. First, you must know that not all states require online sellers to collect sales tax. It all depends on your state's law. Most states impose a 2-per cent sales tax, while others require 6.25 percent.
In the United States, Amazon charges 2.9% per transaction to collect sales taxes. That means you're responsible for paying taxes in each state where your product ships from. In many other countries, the company doesn't collect sales taxes. You'll also have to pay sales tax if you maintain an inventory in a state.
The company has a website that allows sellers to collect and report sales tax. It also allows sellers to see their general obligation and state-by-state tax information. You can access this information through your seller central account if you sell on Amazon. A sales tax report will detail how much you owe.
Once you've collected the sales tax, you must submit a report to the state taxing authority. The deadline varies depending on your state. In most states, you must file your sales tax by the 20th of the month.
There are also different filing requirements from state to state. For example, some states require that you report sales tax for each tax district. If you need clarification, consult with a tax accountant.
Amazon collects sales tax on sellers' behalf in states with fulfilment centres. It makes it easier for sellers to pay their taxes without the burden of managing them on their own. The company also has a sophisticated sales tax collection engine that collects the correct rate when provided with accurate information.
Amazon provides a sales tax report that breaks down sales tax by jurisdiction. To get your sales tax report, log into your Seller Central account and click on Payments. Click the Tax Collection Model filter to switch between taxing districts in the report.
Learn from the masters and cracks the code to festive season sales success with Fynd Platform's Festive Readiness Guide
What is the cost of selling Amazon products?
Amazon's daily average sales revenue is $1.29 trillion. It accounted for Amazon's total revenue of $469.8 million in 2021. Statista reports that Amazon's online retail business made a net income in 2021 of $33.36 Billion, an increase of $21.3 billion over 2020.
What percentage does Amazon take?
The average seller will pay about 15% for sale-related fees. Account fees can range from $0 up to $39.99 per month. Your orders will need to be fulfilled and shipped. The cost of this can vary depending on the products you choose and how they are fulfilled.
Do I have to sell directly to Amazon?
You can sell directly to Amazon. Selling to Amazon is possible if your product performs well on Amazon. What does it mean to sell directly to Amazon? Selling directly to Amazon is a way for Amazon to buy your product wholesale, just like Walmart and Target.
How can I become an Amazon seller?
These are our seven tips to help you be an Amazon success story and increase your sales and profits.
1. Amazon SEO: Improve it.
2. Make sure you list your items correctly.
3. Price your items competitively.
4. Select the right pricing strategy
5. Identify the Most Profitable Items.
6. Customer Service
7. It requires effort and hard work.
8. Final Thoughts.
Are you able to sell on Amazon without a website?
The brand name is essential -- Amazon is trusted by many, but they are cautious about buying from sites they have never used. You don't need a website - While you can have a website and sell on Amazon, starting a business that sells only through Amazon is possible.
What are the Amazon sellers?
According to Marketplace Pulse, Amazon will be the biggest selling platform in the world with 6.3 Million total sellers and an incredible 1.5 million active sellers by 2021. It should not be surprising, as Amazon is the most popular online retailer in most countries.