How Much Does Amazon Charge to Sell?
Amazon is one of the biggest online marketplaces in the world. Millions of sellers use it to reach customers and grow their businesses. But selling on Amazon isn’t free.
Amazon charges sellers through referral fees, account fees and fulfillment fees. Referral fees range from 8% to 45% per sale. Individual sellers pay $0.99 per item, while professional sellers pay $39.99 monthly. Fulfillment costs vary based on whether you ship yourself or use Amazon’s FBA service. Extra fees may apply for refunds and storage.
In this guide, we’ll break down everything you need to know about how much Amazon charges to sell. So you can calculate your total costs and understand your profits.
What Are The Different Fees Charged By Amazon For Selling Products?
Amazon sellers pay multiple fees, which depend on their selling plan, product category, and fulfillment method. The main fees are: referral fees, account fees and fulfillment fees.
A referral fee is charged on every sale. Amazon takes a percentage of the selling price, usually between 8% and 15%, but some categories go up to 45%. Most sellers pay around 15%.
Account fees vary by plan. Individual sellers pay $0.99 per item sold, while Professional sellers pay a fixed $39.99 per month with no per-item charge.
Fulfillment fees depend on whether you ship products yourself or use Amazon’s Fulfillment by Amazon (FBA). If you self-ship (FBM), you will handle all costs. With FBA, Amazon keeps your products, packs them, and ships them for you. But you have to pay storage and shipping fees, which depend on the size and weight of your items.
Amazon also charges extra fees for certain things. These include fees for refunds, storing products for a long time, listing too many items, and optional services like ads.
It’s important to know these costs so you can set the right prices and make the most profit. Next, we’ll explain Amazon’s referral fees and how they affect sellers.
Can You Explain the Amazon Referral Fee for Sellers?
The Amazon referral fee is a commission charged on every sale. Instead of a flat rate, it’s calculated as a percentage of the product’s total selling price, including shipping and gift wrap. It is one of the main costs for selling on Amazon that sellers should consider before listing their products.
The referral fee percentage varies by category. It typically ranges between 8% and 15%, though some categories have higher rates. For example, Amazon device accessories are charged 45%, while appliances and personal care items start at 8%.
Amazon has a minimum referral fee, usually $0.30 per item. If the percentage-based fee is less than this amount, Amazon will charge $0.30 instead.
For sellers in the media categories (books, music, DVDs, video games, and software), there’s an extra $1.80 closing fee per sale in addition to the referral fee.
Knowing referral fees helps sellers set the right prices and keep profits. Since Amazon deducts these fees automatically, it’s important to check the referral fee rates for your product category before listing.
Is There a Monthly Subscription Cost for Selling on Amazon?
Amazon offers two types of selling plans: Individual and Professional. The cost depends on which plan you choose.
Amazon Seller Plan Comparison
Feature | Individual Plan | Professional Plan |
Monthly Fee | No fee | $39.99/month |
Per-item Fee | $0.99 per sale | No per-item fee |
Best For | Small sellers (under 40 items/month) | High-volume sellers |
Amazon Ads Access | Yes | Yes |
The Individual plan has no monthly fee, but sellers must pay $0.99 per item sold. This plan is best for those selling less than 40 items per month or testing the platform before committing. However, individual sellers cannot access advanced tools, run Amazon ads, or apply to sell in restricted categories.
The Professional plan costs $39.99 per month, but sellers do not pay a per-item fee. This plan is ideal for high-volume sellers or businesses looking to scale. Professional sellers get access to bulk listing tools, advertising features, business reports, and lower referral fees in some cases.
Amazon does not charge extra hidden subscription fees, but sellers should consider other costs like referral fees, fulfillment fees, and optional services.
The right plan for you depends on your sales volume and business goals. If you’re selling just a few items, the Individual plan works. If you’re serious about growing, the Professional plan offers more value despite the monthly cost.
What Are the Costs for Beginners to Start Selling on Amazon?
Starting as a new seller on Amazon has different costs. How much you pay depends on your selling plan, the products you sell, and how you ship orders. Here’s a simple breakdown of what beginners should expect.
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Seller Account Fee
The first cost is the seller account fee. Beginners can choose the Individual plan (no monthly fee but $0.99 per item sold) or the Professional plan ($39.99 per month with no per-item fee). If you’re just testing the waters and selling fewer than 40 items per month, the Individual plan is a budget-friendly option.
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Referral Fees
Next, every seller pays referral fees on each sale. These fees range from 8% to 15% for most categories but can be higher for some products. For example, if you sell a $20 home product with a 15% referral fee, Amazon takes $3 per sale.
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Fulfillment by Amazon (FBA) Fees
If you choose Fulfillment by Amazon (FBA), there are additional costs. Amazon charges fulfillment fees based on the size and weight of the product. For example, a small standard item under 6 oz costs about $3 per unit to fulfill.
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Fulfillment by Merchant (FBM) Costs
Amazon charges storage fees for products kept in their warehouses for a long time, starting at $0.75 per cubic foot per month. Sellers who handle their own shipping (FBM) must also pay for their own storage and delivery costs.
Other possible costs include barcode labeling fees (if Amazon does it for you), return processing fees for certain categories, and optional Amazon Ads to promote products.
For beginners, keeping costs low means choosing the right selling plan, managing inventory efficiently, and considering fulfillment costs. By understanding these expenses upfront, new sellers can price products wisely and avoid unnecessary losses.
Does Amazon Offer Any Free Selling Options for Individual Sellers?
Amazon does not offer a completely free way to sell, but individual sellers can start without paying upfront fees.
The Individual selling plan has no monthly subscription cost. It means you don’t have to pay anything unless you make a sale. Instead, Amazon charges $0.99 per item sold. It’s a cost-effective option for beginners who sell fewer than 40 items per month.
Amazon doesn’t offer a completely free way to sell, but sellers can cut costs. Using Fulfillment by Merchant (FBM) instead of Fulfillment by Amazon (FBA) helps avoid storage and fulfillment fees. However, FBM sellers must handle shipping and customer service on their own while only paying referral fees when they make a sale.
Another way to minimize costs is by selling in lower-referral-fee categories. Some categories, like electronics and appliances, have referral fees as low as 8%. It helps sellers keep more of their profits.
Sellers can reduce advertising costs by optimizing their product listings. Using strong descriptions, high-quality images, and relevant keywords helps attract buyers without relying on paid Amazon Ads.
Amazon doesn’t offer a completely free way to sell. However, with careful planning, sellers can start with minimal costs and only pay fees when they make a sale.
Frequently Asked Questions (FAQs)
Selling on Amazon comes with different costs. Here are the most common questions sellers ask about Amazon’s fees and how they affect profits.
How much does it cost to sell on Amazon?
Amazon charges $0.99 per item for Individual sellers and $39.99 per month for Professional sellers. Referral fees range from 8% to 45% per sale. FBA sellers also pay storage and fulfillment fees based on product size and weight.
Does Amazon charge a commission on sales?
Amazon takes a referral fee from every sale. The fee ranges from 8% to 15% for most categories, but some, like Amazon device accessories can go up to 45%.
Are there additional fees besides the referral fee?
Yes, sellers may pay fulfillment fees (FBA), storage fees, refund processing fees and optional ad costs if using Amazon Ads. Costs can vary based on product type and fulfillment method.
How much does Amazon charge for storing inventory?
Standard storage costs $0.75 to $2.40 per cubic foot per month. Fees are higher from October to December. Long-term storage fees apply to items stored for over 365 days.
Are there any hidden fees when selling on Amazon?
Amazon has extra fees like refund administration fees, removal fees, high-volume listing fees and optional ad costs. Always check the Amazon fee schedule before listing products.
Does Amazon charge for returns and refunds?
Amazon keeps 20% of the referral fee or $5 (whichever is lower) when processing a refund. FBA sellers don’t pay return shipping, but some categories like apparel may have extra return fees.
Final Words
Selling on amazon comes with different costs. But when you know them, you’ll be able to set the right prices and maximize profit. The main feed includes referral fees, seller account costs. There are also extra charges for storage, refunds, and optional services.
Beginners can start with the Individual plan because it costs less. The Professional plan is better for sellers who sell a lot of products. Choosing between FBA and FBM affects fulfillment costs, so sellers must decide what works best for their business.
To avoid surprises, always calculate total fees before listing products and check Amazon’s fee schedule regularly. By managing costs effectively, sellers can build a profitable business on Amazon’s massive marketplace.
Always check total fees before listing products to avoid surprises. You should also review Amazon’s fee schedule often. Managing costs properly helps sellers grow a successful business on Amazon.