Selling products through Amazon FBA (Fulfillment by Amazon) can be a great way to scale up your business and generate more profits. Two questions that are frequently asked about selling on Amazon are “What are Amazon FBA fees?” and “How much does it cost to sell on Amazon?”
Below, we explain Amazon FBA fees and the benefits that come with them.
Amazon FBA fees: Individual vs. professional selling plans
The first cost to consider when looking at Amazon FBA fees is the type of selling plan you choose. Amazon offers two primary plans, individual and professional, and the one that’s right for you depends on the amount you intend to sell and your business’s stage of growth.
Let’s look at the main differences between the two selling plans, barring the additional fees of each (which we’ll cover later):
Individual plan
The individual plan is great for new sellers since the cost depends on how many products you sell. At the price of $0.99 per unit sold, this plan is ideal for someone who sells fewer than 40 items per month or is experimenting with a wide variety of merchandise. The individual plan doesn’t come with advertising or selling tool support from Amazon.
This plan includes:
- Access to Fulfillment by Amazon
- The ability to add to your inventory
Professional plan
The professional plan is best for businesses or individuals who have an established line of products and plan to sell at least 40 items per month. The plan comes at a flat cost of $39.99 per month and offers many benefits that the individual plan doesn’t, like the ability for your products to qualify for higher placement on Amazon’s product pages.
This plan comes with the features of the individual plan, plus:
- The ability to sell in restricted categories
- The use of APIs to create bulk listings
- Inventory management tools
- The ability to set your shipping fees (for most products)
- Access to Amazon advertising tools
- The ability to run deals and promotions, like free shipping
- Access to the account by multiple users
How much does it cost to sell on Amazon, and is it worth it?
There are many optional and additional Amazon FBA fees. The costs depend on three main factors:
- The product’s weight
- The product’s size
- Where the product is sold (on an external site or on Amazon)
When you’re selling products through FBA, the primary fees are:
- Fulfillment fees: These are the fees Amazon charges you to fulfill your orders; they cover the costs of picking, packing, and shipping your products. These fees also include the price of offering customer service and merchandise returns. Amazon fulfillment fees are calculated per item.
- Inventory storage fees: You have two storage options when selling with Amazon: Store the products yourself or keep your inventory in an Amazon fulfillment center. If you go with an Amazon warehouse, you’ll be responsible for monthly inventory storage fees, which are calculated by how much space your items occupy.
There are some additional FBA fees related to Amazon’s long-term product storage. You can avoid them with careful planning, but watch out for:
- Removal order fees: Amazon will charge you a per-item fee if they have to dispose of some of your inventory or return it to you.
- Returns processing fees: While Amazon often offers free return shipping, “free” typically refers to the customer’s costs—not the seller’s.
- Unplanned service fees: If any of your products require additional handling after they arrive at an Amazon fulfillment center, you’ll be charged additional fees per item.
Amazon also offers optional services for added convenience and a better customer experience, but they come with additional FBA fees:
- FBA Subscribe and Save
- FBA Small and Light
- FBA Export
- FBA Dangerous Goods
- Multi-Channel Fulfillment (MCF)
- Amazon-partnered carrier program
- Inventory placement service
Benefits of Amazon FBA selling plans
Amazon FBA fees can seem overwhelming, but the selling plans come with notable benefits, including:
- Amazon Prime shipping: When you sell products through FBA, they become eligible for free two-day shipping with Amazon Prime. The Amazon Prime logo will be featured on all of your items, helping you automatically reach a wider audience.
- Scaling your business: With Amazon FBA, you don’t have to worry about your business’s logistics too much since the company is fulfilling all your orders. Once your business starts getting more orders, you can easily store your inventory in an Amazon warehouse for fast, convenient fulfillment.
- Amazon search rankings: When someone searches for a product on Amazon, preference and priority are given to FBA products. This naturally gives your items better rankings in the search results, leading to more sales.
- Customer support and returns: When purchasing products online, especially from newer sellers, customers are much more comfortable when they know the items can easily be returned. Amazon FBA makes returns simple and also provides customer support for your products, taking the burden off of you.
Take control of Amazon FBA fees with AccelerList
Now that we’ve looked at the fees and benefits of Amazon FBA, one question remains: How do you keep track of all the FBA fees to determine if you’re actually turning a profit?
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