Amazon has become a giant in the world of online retail sales, making it an attractive platform for many businesses and individuals looking to sell their products online. However, before you can start selling on Amazon, you need to understand the fees and costs associated with Amazon seller registration and setting up your online store.
In this article, we will break down the Amazon seller registration fees and costs to help you understand the financial investment required to become an Amazon seller.
Amazon Seller Account Types
Amazon offers two types of seller accounts – individual and professional. The individual account is best for small-time sellers with a low volume of sales, while the professional account is for high-volume, established businesses with a registered business name and tax ID.
Amazon Individual Seller Fees
The individual seller account has a pay-as-you-go fee structure. Amazon charges you when you make a sale, and there is no monthly subscription fee. The individual seller fee is $0.99 per item sold, and these fees are added to the cost of your selling price.
Amazon Professional Seller Fees
If you choose to register as a professional seller, you need to pay a monthly subscription fee of $39.99. However, the benefits of the professional account far outweigh the costs. This account type lets you list more than 50 items per month, offers advanced selling tools, and the buy box option.
Amazon Referral Fee
When you sell an item on Amazon, the platform charges you a referral fee. The referral fee is a percentage of the item’s sale price and can range from 6% to 45% based on the product’s category. Most products fall into the 15% category.
Amazon Fulfillment Fees
Amazon offers a fulfillment service (FBA) where you can store your products in Amazon’s warehouse and let Amazon handle the shipping and customer service. This service costs money, and the fees depend on the product’s weight, size, and where it’s shipping from.
Amazon reserves the right to charge additional fees for handling and storage if your product doesn’t sell within a specific time frame.
Other Amazon Seller Fees
Amazon also charges additional costs that depend on specific situations. For example, if you sell a media product (book, DVD, music), you must pay a fixed closing fee. There are also fees for selling products internationally or having customers in different states.
Selling on Amazon sounds simple, but it’s essential to understand all the fees before signing up. The costs of becoming an Amazon seller extend beyond registration fees, and they add up quickly. It’s also important to remember that these fees can change at any time, so it’s essential to stay up to date on any changes.
With that said, many sellers find that the benefits of selling on Amazon far outweigh the fees. The online marketplace’s incredible reach and active customer base make it an excellent platform for businesses looking to increase their brand visibility and sales. By understanding the Amazon seller fees and costs, you can make informed decisions about whether or not it’s the right platform for your business.