So we all know you can make a decent buck selling on Amazon. However, it is very important to know exactly how big Amazon’s cut is. There are a couple of main fee’s that everybody should know. But you also have a couple of less known fee’s that can bite you in the ass later if you didn’t know about them.
Amazon Referral Fee
15% of the sales price
This is a fee that every Amazon seller has to pay, regardless if they use FBA or not. This is the fee to use their platform and get access to their millions of shoppers. For most categories it’s 15%, but for a couple of categories it might be different. Check the full list of referral fee’s per category here.
Amazon Professional Selling Account Fee
$39,99 per month
If you are just starting out you can start with a free account where they charge you no monthly fee, but a $0,99 fee per item sold. And then as soon as you start selling more than 40 products a month you can switch to the Pro account.
Pay Per Click (PPC)
PPC is completely optional to use. However, I believe that in order to succeed on Amazon you must use their PPC system. It is completely up to you how much you want to spend.
Amazon FBA Fee’s
The next fee’s are only applicable if you are using Amazon FBA.
Pick & Pack Fee
$2,41 – $5,26 per unit.
This is the fee you have to pay for your items to get picked, packed & shipped. This will also include any customer service & product returns. The fee is categorised based on your item’s size & weight. Make sure to check out this list to find out in which category your product will fall. Or you can use the FBA fee calculator to check out the fee’s on products already listed on Amazon.
$0,69 per cubic feet.
$2,40 per cubic feet during October – December!!
Amazon will charge you storage fee based on how many cubic feet of storage space your products will take up. Please note there is a huge increase in fee during the Christmas months.
Amazon during Christmas months is absolutely crazy and sales will be 5x higher for categories like toys. So make sure to carefully do you inventory planning for these months and try to avoid wasting money on excess inventory.
Inventory Placement Service
$0,30 per unit.
If you are sending large quantities to Amazon FBA, Amazon might split up your shipment and have you ship your products to multiple warehouses. I made a post about this here.
If you wish to avoid this and send all your inventory to 1 warehouse you can use the Inventory Placement Service.