How Much Does It Cost To Sell On Amazon?
Selling online is a great way to make a living, and Amazon is one of the best and most popular online marketplaces for entrepreneurs looking to get into ecommerce. But many new Amazon sellers wonder and ponder the question: how much does it cost to sell on Amazon?
In this article, we’ll dive deep into the topic of Amazon selling costs so that you know exactly what to expect when you start selling on the platform. You’ll come away from this article with an understanding of the different Amazon fees, pricing structures, and other charges that you’ll need to be aware of when selling on Amazon.
Let’s get started.
Amazon Selling Costs
Amazon selling costs refer to any fees or expenses associated with starting and running your Amazon business. There are several types of costs you should take into account when considering selling on Amazon, such as:
• Account setup fees
Listing fees
• Fulfillment costs
• Advertising costs
• Shipping costs
• Professional service fees
• Storage fees
These fees can vary depending on the type of business you are operating, so make sure to research the specific fees associated with your particular Amazon store.
Account Setup Fees
The first step in selling on Amazon is creating an account, which typically requires a one-time setup fee. Amazon offers two types of accounts for sellers: a Professional Selling Account and an Individual Selling Account.
For Professional Selling Accounts, the setup fee is currently $40. On top of that, Amazon also charges a 15% referral fee on the total sales amount.
Individual Selling Accounts are free to create, though you must pay a per-item fee of $0.99. But unlike Professional Accounts, Individual Accounts do not qualify for many of Amazon’s features such as promoted product placements and Fulfillment by Amazon (FBA).
Listing Fees
In addition to the one-time account setup fee, Amazon also charges a fee for each item listed for sale on its website. Listing fees come in three varieties: insertion fees, listing-renewal fees and professional product list fees.
Insertion fees are charged each time a product is listed for sale. The cost varies based on the product category, but typically ranges from $.30 to $1.80.
Listing renewal fees are charges each time an item is re-listed after it has expired. The cost is typically $.30 per item.
Lastly, professional product list fees enable sellers to list more than 50 products on the Amazon website. These fees range from $35 to $150.
Fulfillment Costs
Fulfillment costs refer to the costs associated with storing and shipping products to customers. This can include labor, materials, and shipping fees. Amazon’s Fulfillment by Amazon (FBA) services can help reduce satisfying costs by storing and shipping products to customers on behalf of the seller. The costs are per unit, depending on the size and weight of the item.
Advertising Costs
Amazon offers a variety of advertising tools for sellers. These include sponsored products, sponsored brands, Amazon Stores and more. Prices for these services vary, but typically range from $0.05 to $2.00 per click.
Shipping Costs
Shipping costs refer to the cost of actually getting the product to the customer. Costs can include packaging, materials and the actual price of shipping the item. Amazon provides discounts on shipping costs to sellers who are enrolled in its Seller Fulfilled Prime program.
Professional Service Fees
Sellers can also choose to hire third-party professionals such as Amazon Consultants, accountants, attorneys, marketing firms and more to help with their business. Professional fees range from a few hundred to thousands of dollars.
Storage Fees
If you choose to outsource fulfillment to Amazon, you will also incur storage fees. Amazon charges fees based on volume, so the cost depends on how much inventory you store. Again, fees will vary depending on the type of inventory you store.
As you can see, there are various fees associated with selling on Amazon. The fees can add up quickly, so make sure to do your research before deciding to start selling on the platform. Even if you are expecting to incur costs, you can still make a profitable business on Amazon if you have the right product and pricing strategy. Good luck!
