Amazon Seller Central: Fees
Amazon Seller Central is a platform that allows businesses to sell their products on Amazon. It provides a wide range of services, including product listings, order fulfillment, and customer service. However, using Amazon Seller Central comes with fees that businesses should be aware of. In this blog post, we'll outline the different types of fees that Amazon charges through its Seller Central platform.
Referral Fee: This is a percentage fee that Amazon charges on the sale price of each item sold on its platform. The referral fee varies based on the category of the product being sold and typically ranges from 6% to 45%. For example, if a business sells a product for $100 in a category with a referral fee of 15%, Amazon will charge a referral fee of $15 on that sale.
Subscription Fee: Amazon charges a monthly subscription fee for businesses that want to use its professional selling plan. This plan allows businesses to sell an unlimited number of products on Amazon and access advanced selling tools. The subscription fee is $39.99 per month.
Fulfillment By Amazon (FBA) Fees: If a business uses Amazon's fulfillment services, the following fees will be charged:
Fulfillment Fees: When a customer places an order, Amazon picks, packs, and ships the product to the customer. Amazon charges a fulfillment fee for this service, which includes the cost of shipping and handling the product. The fulfillment fee varies based on the size and weight of the product, and ranges from a few cents to several dollars per item.
Storage Fees: Amazon charges monthly storage fees for products stored in its warehouses. The storage fee varies based on the size and time of year. Generally, Amazon charges a storage fee of $0.75 to $2.40 per cubic foot per month.
Removal Fees: If a business decides to remove its products from Amazon's warehouses, it will be charged a removal fee. The removal fee varies based on the size and weight of the product and the time of year. Generally, Amazon charges a removal fee of $0.15 to $0.50 per item.
Long-Term Storage Fees: If a product remains in Amazon's warehouses for more than 365 days, a long-term storage fee is charged. The long-term storage fee is based on the volume of inventory and ranges from $6.90 to $0.15 per cubic foot per month.
Returns Processing Fees: Amazon charges a returns processing fee for each item returned by a customer. The returns processing fee varies based on the size and weight of the product and the category. Generally, Amazon charges a returns processing fee of $0.50 to $20 per item.
Multi-Channel Fulfillment Fees: If a business uses Amazon's multi-channel fulfillment service to fulfill orders from other marketplaces, it will be charged a fee. The fee varies based on the size and weight of the product and the marketplace. Generally, Amazon charges a fee of $2.50 to $5.95 per item.
Storage Fees: If a business uses Amazon's storage services, it will be charged a monthly storage fee based on the volume of inventory stored in Amazon's warehouses. The storage fee varies based on the time of year and the size and type of the product. Generally, the storage fee ranges from $0.75 to $2.40 per cubic foot per month.
Advertising Fees: Amazon offers various advertising options to help businesses promote their products on its platform. The advertising fees vary based on the type of ad and the marketplace. For example, Amazon charges a cost-per-click fee for Sponsored Products ads, which typically ranges from $0.10 to $5.00 per click.
Amazon Seller Central comes with various fees that businesses should be aware of. These fees can impact the profitability of a business and should be factored into the pricing of products sold on Amazon. By understanding the different types of fees charged by Amazon, businesses can make informed decisions about whether to use Amazon Seller Central and how to price their products to remain competitive while still being profitable.
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