Amazon Seller Tips

AMAZON NEW SELLER? KNOW THE COSTS YOU’LL INCUR

AmazonSellerTalk Says About Amazon New Seller

When you are starting an Amazon business, you must be aware of the costs you will incur, in order to plan your profit margin.

So to make your job simpler, I have listed the costs you must know before starting to sell on Amazon.

1. Seller’s Fees  

Seller fee is something that is levied on all the sellers by Amazon. But it will vary with the type of sellers.

The professional seller must pay a monthly subscription of $ 39.99. The individual seller should pay $ 0.99 per item.

Though it is high, all the sellers believe that the money paid is worth it. As Amazon is an e-commerce giant, you can earn great profits when you carry out business on their platform.

2. Referral Fees

As per Amazon’s rules, every seller should pay referral fees for the products they sell. But the percentage varies with the products. However, the maximum level of fees does not exceed 50% on the selling price of the products.

You have to be careful while choosing your product and plan accordingly. I’ll list out the categories with their referral fees from Amazon’s official article.

Referral Fee Schedule (effective June 8, 2021)

Categories

Referral Fee (including the Digital Services Tax)

Per-item Minimum Referral Fee

Additive Manufacturing

12.24%

£0.25

Amazon Device Accessories

45.9%

£0.25

Baby Products (excluding Baby Clothing)

  • 8.16% for products with a total sales price up to £10.00

  • 15.3% for products with a total sales price greater than £10.00

£0.25

Beauty

  • 8.16% for products with a total sales price up to £10.00

  • 15.3% for products with a total sales price greater than £10.00

£0.25

Beer, Wine & Spirits

10.2%

£0.25

Books, Music, VHS, DVD****

• 5.1% for products with a total sales price up to £5.00 • 15.3% for products with a total sales price greater than £ 5.00

N/A

Business, Industrial & Scientific Supplies

15.3%

£0.25

Car & Motorbike

  • 7.14% for Car & Motorbike electronic devices

  • 12.24% for Car & Motorbike electronic accessories

For remaining Car & Motorbike products:

  • 15.3% for the portion of the total sales price up to £45.00

  • 9.18% for any portion of the total sales price greater than £45.00

£0.25

Clothing, Shoes, and Handbags*

For Fulfillment by Amazon (FBA) and Seller Fulfilled Prime selections:

  • 15.3% for the portion of the total sales price up to £40.00

  • 7.14% for any portion of the total sales price greater than £40.00

For all other selections:

  • 15.3% flat fee

£0.25

Computers

7.14%

£0.25

Computer Accessories

  • 15.3% for the portion of the total sales price up to ₤100.00

  • 8.16% for any portion of the total sales price greater than ₤100.00

£0.25

Consumer Electronics

7.14%

£0.25

DIY & Tools

13.26%

£0.25

Education Supplies

15.3%

£0.25

Electronic Accessories

  • 15.3% for the portion of the total sales price up to ₤100.00

  • 8.16% for any portion of the total sales price greater than ₤100.00

£0.25

Flow Control & Filtration

12.24%

£0.25

Fluid Transfer

12.24%

£0.25

Food Service

15.3%

£0.25

Furniture

  • 15.3% for the portion of the total sales price up to £175.00

  • 10.2% for any portion of the total sales price greater than £175.00 (excluding mattresses, which will be charged 15% on total sales price)

£0.25

Grocery & Gourmet

  • 8.16% for products with a total sales price up to £10.00

  • 15.3% for products with a total sales price greater than £10.00

N/A

Health & Personal Care

  • 8.16% for products with a total sales price up to £10.00

  • 15.3% for products with a total sales price greater than £10.00

£0.25

Home and Kitchen

15.3%

£0.25

Industrial Electrical Supplies

12.24%

£0.25

Industrial Tools & Instruments

12.24%

£0.25

Jewelery

  • 20.4% for the portion of the total sales price up to £225.00

  • 5.1% for any portion of the total sales price greater than £225.00

£0.25

Large Appliances (with the exception of Accessories, Microwaves, and Range Hoods)

7.14%

£0.25

Material Handling

12.24%

£0.25

Metalworking

12.24%

£0.25

Musical Instruments & DJ

12.24%

£0.25

Personal Care Appliances***

  • 8.16% for products with a total sales price up to ₤10.00

  • 15.3% for products with a total sales price greater than ₤10.00

£0.25

Renewable Energy Supplies

12.24%

£0.25

Software

15.3%

N/A

Sports & Outdoors

15.3%

£0.25

Cycling Accessories

8.16%

£0.25

Tyre

7.14%

£0.25

Video Games – Games & Accessories

15.3%

N/A

Video Games-Consoles

8.16%

N/A

Watches

  • 15.3% for the portion of the total sales price up to £225.00

  • 5.1% for any portion of the total sales price greater than £225.00

£0.25

Handmade**

12.24%

£0.25

Everything else

15.3%

£0.25

3. Returns Processing Fees

This fee is charged by Amazon for certain product categories.  Amazon has reduced the referral fees on certain categories like Apparel and shoes.

It has also eliminated the fees for Watches, Jewelry, Luggage, Handbags, and Sunglasses categories. This was implemented from June 1, 2021.

4. Shipping cost :

Always remember that you should research before jumping to a conclusion. Likewise quote an estimation of the cost you will be incurred, if you ship the products by FBA and by yourself.

Compare it and act accordingly. Because you may not be aware of the cost any shipping service will ask.

And my personal suggestion is to take FBA. Because it is comparatively cheaper for international priority shipping.

FBA also increases the visibility of your products in the market. When you adopt FBA, you can enjoy many deals on Amazon Prime Day.

5. Inventory cost :

Amazon will charge a monthly inventory storage fee for the space your products occupy in fulfillment centers. Your products will be stored safely in Amazon’s warehouse.

This monthly storage fee is calculated on your daily average volume, based on the size of a unit.  These units are the place where your products are properly packaged and made ready to ship in accordance with FBA policies and requirements. Fees may vary based on product size and time of year. If your inventory is classified as dangerous goods, the fees are assessed using a different rate card.

Conclusion

When you plan these costs properly, you can master Amazon’s business. Also, you can source more profitable products through AmzOnlineArbitrage. Its deals list comprises the shipping cost of the products.

Follow AmazonSellerTalk Blogs for more Amazon tips and enjoy great profits.

 

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