Amazon selling fees are the charges sellers incur when using the platform to list and sell their products. These fees vary based on factors like product category, selling plan, and fulfilment method. For sellers in the UK and USA, understanding these fees is crucial to pricing products competitively and maintaining profitability.
Navigating Amazon's fee structure can be daunting, especially for new sellers or those expanding into international markets. This is where an Amazon Agency for the UK and USA can be invaluable, offering expertise to optimise your selling strategy and maximise profits.
Breaking Down Amazon Selling Fees
Referral Fees
Referral fees are Amazon's commission on each sale, typically ranging from 6% to 45% depending on the product category. For instance, computers carry a 7% fee, while footwear demands 15%. If you sell a £1000 computer, you’d pay £70 in referral fees - simple, yet it adds up fast.
Subscription Fees
Sellers pick between two plans: individual or professional. The individual plan costs £0.75 per item sold - great for dabbling or low-volume sellers. The professional plan, at £25 monthly, suits those moving over 35 items a month, saving money as sales scale.
Fulfilment Fees
Choosing Fulfilment by Amazon (FBA)? Fees cover picking, packing, and shipping - a small item under 1kg might cost £2.50. With Fulfilment by Merchant (FBM), you dodge these fees but handle logistics yourself, balancing cost against control.
Other Fees
Extras like storage fees (around £0.26 per cubic foot monthly) or removal fees for unsold stock can sneak up on you. Long-term storage fees, for inventory sitting over 12 months, jump to £43.20 per cubic meter. Stay vigilant to keep these in check.
Tips for Managing Amazon Fees
Choose the Right Selling Plan
Selling a handful of items? The individual plan keeps costs low with no monthly commitment. If you’re shifting over 35 products monthly, switch to the professional plan to cut per-item expenses.
Optimise Product Categories
Categories matter - books take a 15% referral fee, while watches charge 15% on the first £45, then 5% beyond. Picking products in lower-fee categories can boost your bottom line if it fits your niche.
Leverage FBA Strategically
FBA fees sting, but Prime eligibility often drives sales through the roof. Weigh the cost against the conversion boost - sometimes, it’s worth it for high-demand items.
Common Mistakes to Avoid
Underestimating Fees
It’s tempting to focus on referral fees alone, but fulfilment and storage costs can erode margins. Price with the full picture in mind - every penny counts.
Ignoring Fee Changes
Amazon tweaks its fees now and then. Miss an update, and your profit calculations could go awry - check their seller updates regularly.
Overlooking Storage Fees
Slow-moving stock? Long-term storage fees can hit hard after a year. Clear out sluggish inventory to avoid unexpected bills.
Mastering Amazon’s fee maze doesn’t have to be a solo slog. Teaming up with an Amazon Agency for the UK and USA can turn complexity into opportunity, helping your store thrive. Ready to take control of your fees and profits? Dive in today.