Do you often hear sellers discuss the Amazon fees? Well, they hardly ever discuss Amazon fees. It’s common to hear how much money people make on Amazon, but it’s uncommon to hear about the overhead expenses. As a result, you could lose money if you are careless with your spending and the fees Amazon levies.

Consider your settlement. You’ll observe that the prices are grouped, making it challenging to understand the costs line by line. Filtering provides a little more detail, but the additional information isn’t well-organized. Since there is no way to avoid paying the selling fees, most sellers don’t care about them. However, being aware of Amazon’s costs will enable sellers to make essential business decisions.

 

The most frequent charges and credits from Amazon are listed below: 

 

Per-item Fee

The charges are $0.99 per item that is applied to all sales made under the Individual Selling Plan. However, if you regularly sell more than 40 items per month, you should subscribe to the Professional Selling Plan, which offers a wealth of additional features and has no per-item fee.

 

Referral Fee on Item Price

Referral fees for items sold on Amazon are calculated as a percentage of the item price or as a minimum referral fee, often $1.00. Although it typically costs 15% of the item price, it can vary from 6% to 45% depending on the categories.

 

Referral Fee on Gift Wrap

The gift wrap charge-back fee, which the buyer pays you beforehand for gift wrapping, is the antithesis of this. To balance the account, Amazon will take money from you equal to the charge-back fee amount.

 

Referral Fee on Shipping

No matter how much you charge for shipping, Amazon takes 15%.

 

FBA Fulfillment Fee

The item you are selling will determine the FBA fulfillment charge. However, it begins at $2.41 for modest, typical-sized containers weighing less than 10 ounces.

 

Inbound Transportation

It is an older terminology for the inbound transportation charge. The price you pay to ship your things to Amazon via their shipping label service is no longer in use.

 

FBA Inventory Disposals

If you want Amazon to dispose of your product, there are inventory disposal fees, which makes sense given that Amazon FBA charges for inventory storage.

 

FBA Inventory Removals

You can ask to have the object sent back to you if you don’t want to discard it. Then, Amazon will mail the items back to you after gaining them from their fulfillment facilities. FBA Removal fees cover returns and disposal. Removals cost more than disposals because Amazon must pick, box, and ship each item to you.

 

FBA Label Fee

Amazon will charge a pre-labeling fee if you want them to mark your products with the ASIN/FNSKU barcodes. The cost per label is $0.20, but you should always check the page for updates if the price goes up.

 

Warehouse Damage

Amazon will instantly reimburse any warehouse-damaged items. Therefore, you don’t need to issue or file a removal fee in most circumstances.

Amazon will probably dispose of the things or sell them for less. You can ask for an investigation and reimbursement if you discover an item harmed in the warehouse. The refund falls under the exception category when it is manually processed.

 

Warehouse Lost

The new Amazon policy states that it will offer less compensation for damaged or lost goods in an Amazon warehouse. Amazon will be the only decider of how much they’re ready to refund the seller if your things are found to be missing in their warehouse. A set of standards serves as the foundation for the compensation. 

 

Subscription Fee

Both amateur sellers and professional sellers are accepted through Amazon FBA. Hobbyists can benefit from the “individual seller” category, which has no monthly subscription price, by selling = 40 units per month.

In addition to the usual FBA fulfillment fees you must pay for the individual seller accounts, a $1.00 per unit fee is added to each transaction.

Sellers who offer their goods or goods under their brands ought to use the professional tier. For full access to Amazon’s platform, which costs an additional $1 per unit, you must pay $40 each month.

 

Variable Closing Fee

This additional charge, which Amazon tacks on the referral fee, is also referred to as variable closing fees. A media product or a non-media one has an effect on the rate. It’s a set price for media products. The shipment weight determines the variable fee for non-media items.

Let’s say you get $20 for a book. You are required to pay a referral fee of 15%, or $3.

 

Amazon Capital Services

You’d find this mentioned on your settlements if you accepted an Amazon loan.

 

Payable to Amazon

This is the amount you owe Amazon; it’s generally carried over from the last settlement.

 

Storage Fee

Storage costs apply to keeping your things at fulfillment facilities. Long-term storage fees, which are significantly higher, must be paid for items that remain in the warehouse for more than a year.

From January to September, the price is $0.69 per cubic foot for products of the standard size. The price increases to $2.40 per cubic foot from October through December. The cost of long-term storage rises to $6.90 per cubic foot.

 

Cost of Advertising

This represents the total amount you will pay for Amazon advertising within the time frame.

 

Shipping Services

Amazon offers to ship for purchases. It is advised to choose this path because doing so gives you greater seller protection as compared to sending it independently. Additionally, Amazon can charge a modest fee for particular delivery services bought through Amazon. Shipping from Amazon is probably less expensive than shipping from the post office or a UPS retail outlet.

 

Shipping Services Refund

Refund for paid shipping services.

 

Reversal Reimbursement

You will see this fee if Amazon locates the lost inventory after paying you in cash for it.

 

Conclusion

Without a doubt, selling on Amazon puts you in front of millions of customers and has the potential to grow your eCommerce business. But, first, be knowledgeable about what you’re paying to Amazon and how to lower your costs through conversions, fulfillment, and visibility to guarantee that your revenues don’t suffer in the interim. 

FBAClaims360 is here to help! If you have any questions feel free to contact us. 

We are here to answer all your questions and our dedicated team works hard to guide you through the process. 

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