If you want to tap into the success of the world’s largest eCommerce marketplace, then you might be wondering: “how much does it cost to sell on Amazon?” In this article, we aim to break down everything you need to know about Amazon seller fees in 2023.
How much does it cost to sell on Amazon?
Amazon fees vary greatly based on whether you use Seller Central, Vendor Central, FBA services, and/or other platforms they offer.
If you’re in Canada and wondering: “how much does it cost to sell on Amazon Canada?”, then you’ll want to convert all the prices quoted herein from USD to CAD.
Below we provide a breakdown of the 2023 Amazon seller fees structure.
These are the first fees you’ll encounter when you sign up to become an Amazon seller. Keep in mind though that pricing varies based on whether you require a professional account or an individual account.
For a professional seller account, you’ll be required to pay a monthly subscription fee of $39.99. Individual accounts are required to pay $0.99 per item sold.
Summary of account fees:
- $39.99 per month for a professional account
- $0.99 per item sold for an individual account
Amazon sales-related fees
These are the Amazon seller fees in 2022 that you’ll have to pay once an item is sold. Below, we list the three types of sales-related fees and how much you should expect to pay.
These fees are essentially the commission Amazon gets for each item you sell on their platform and will depend on the product category. Referral fees are calculated as a rate and can range from 5% to 45%, with most being around 15%.
Minimum referral fees
With some categories, you may have to pay a minimum referral fee which is a fixed fee rather than a rate. These are usually under $2 per sale.
These are fees charged on media items including books, videos, video games, and so on. You can expect to pay an additional $1.80 per sale in closing fees.
Summary of sales-related fees:
- Referral fees: 5%-45% per sale (depends on category)
- Minimum referral fees: $0-$2 per sale (depends on category)
- Closing fees: an additional $1.80 per item (media category)
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Amazon FBA Fees
You’ll have to pay Amazon FBA fees if you plan to use the Fulfillment by Amazon service. With FBA, Amazon will be warehousing your products and shipping orders.
Order fulfillment fees
Fulfillment FBA fees are charged based on the size and weight of your products. The largest and bulkiest products will be the most expensive which tends to make Amazon FBA more attractive to those selling smaller and lighter items.
View all fulfillment FBA fees here on Amazon Seller Central.
Monthly storage fees
Some of the FBA fees come from inventory storage fees. These fees vary slightly based on size and the time of year. From January to September, you can expect to pay $0.75/cubic foot for standard items and $0.48/cubic foot for oversized items.
During the busy holiday months of October to December, these rates jump to $2.40/cubic foot and $1.20/cubic foot respectively.
Long-term storage fees
The monthly storage FBA fees above only apply to those that sell their products in a timely manner. Inventory that sits in Amazon’s warehouse for longer than 1 year is subject to a monthly long-term storage fee of $6.90/cubic foot or $0.15 per unit (whichever is greater) in addition to the standard monthly storage fees.
Summary of FBA fees:
Fulfillment fees: vary by weight, size, and category (see fees here)
Monthly storage fees: $0.48-$2.40/cubic foot depending on size and season
Long-term storage fees: additional $6.90/cubic foot or $0.15/unit (whichever is greater)
Amazon FBM Merchant Fulfillment Fees:
With FBM (fulfillment by merchant), you may have more control over your fulfillment processes than with Amazon FBA.
Also, Amazon FBA fees can be cost-prohibitive for some types of products and niches including heavy and bulky items. With FBM, you’ll have more control over your total Amazon Seller fees in 2022.
You’ll also want to be aware of certain limitations you’ll face regardless of fulfilling your own orders. These include set shipping rates applied by Amazon on individual seller accounts.
Summary of FBM Fees:
Fees will vary based on whether you rent warehouse space, own your own warehouse or hire a fulfillment partner. Overall though, you can generally expect to pay less than the FBA fees quoted above if you’re selling bulky items like furniture or selling items relatively infrequently.
Amazon multichannel fulfillment fees
In this case you’re going to want to add up your Amazon FBA fees, FBM fees, and any other 3PL fees you’ll encounter if you’re using multiple channels for fulfillment.
Miscellaneous Amazon Seller Fees in 2023
It may seem like Amazon seller fees in 2023 just keep coming. Below we discuss a few additional fees sellers may encounter when selling on Amazon.
If someone decides to return a product they purchased from you, then you will be refunded the applicable sales-related fees. However, you will now have to pay a refund administration fee of either $5.00 or 20% of the referral fee, whichever is less.
If refunds are processed through FBA, then you’ll have to pay additional service charges such as repackaging fees.
High-volume listing fee
This fee applies to those selling over 100,000 listed products and is a monthly flat fee of $0.005 per eligible item.
Packaging FBA fees
When using Amazon FBA, you have the option of placing items in your own boxes or using theirs. If you choose to use Amazon’s boxes, then you’ll pay $0.15/unit for items shipped in November and December and $0.10/unit for the rest of the year.
How to calculate your profit margin on Amazon
With such a long list of Amazon seller fees in 2022, it’s best to make sure you have a profitable business model before signing up for Seller Central.
Here, we offer some tips on how to calculate profit margins on Amazon.
Amazon seller profit calculator
If you want to calculate your profit margins, then an Amazon seller profit calculator may be the best tool for the task. This type of calculator will take inputs such as product weight, dimensions, and additional data to calculate your profit margins.
There are many Amazon seller profit calculators available online, but we recommend using Amazon’s revenue calculator and FBA revenue calculator on Seller Central.
How to ensure healthy profit margins
Now that you know how to calculate your profit margin on Amazon, you’ll want to apply a sufficient markup on your product costs to ensure you make a profit on each item sold. This means accounting for all the Amazon seller fees in 2022 as well as any business overhead.
To minimize your business’ costs, you’ll want to simplify your supply chain and focus on efficiency in all areas of your operations. You might even want to consider FBM to circumvent FBA fees if that is a cost-effective option for your product categories.
Finally, it’s always a good idea to hire an Amazon consultant that can provide pricing analyses and expert advice on selling on Amazon.
From FBA fees to an assortment of miscellaneous costs, Amazon Seller fees in 2022 can certainly add up quickly. If you want your Amazon business to be profitable, then you’ll need to factor all these costs into your product pricing, as well as simplify your supply chains for the best chance at success.
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