How much does Amazon charge to sell? What is this about?

How much does Amazon charge to sell? It’s news to no one that third-party sellers are responsible for most of Amazon’s growth. The fees the company charges marketplace merchants—including commissions, related fulfillment and shipping charges and other seller services—totalled over $21.38 billion during its most recent quarter, up 20% from the previous year.

Whether you currently sell on Amazon or you’re considering it, there are costs to develop into your selling strategy to determine the profitability of your marketplace business. Here is a breakdown of the company’s current selling fees.

How much does Amazon charge to sell?

There’s no denying the power of Amazon. Today, every two out of three U.S. consumers shop on Amazon—and 57% make purchases weekly or more—according to Jungle Scout.

But before adding another channel to your multichannel selling strategy, it’s always wise to dissect the true cost of selling on that marketplace first. Without doing your due diligence, you may wind up with a serious case of sticker shock.

This article will walk you through the numbers, starting with Amazon’s fee structure and ending with tips on how to reduce your costs.

Amazon charge to sell

Mandatory Amazon fees

Account fees: cost varies

When learning how to sell on Amazon, the first step is to select a plan. You can choose from one of two seller plans.

Individual plan ($0.99 per item sold) – Only for merchants who sell fewer than 40 items a month. You may choose this if you’re just looking to test the waters and sell one or two key products to begin with. However, you won’t benefit from the same reach or efficiencies as you would with a Professional plan.

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Professional plan ($39.99 per month) – Best for any serious merchant looking to sell on Amazon. By signing up for the Professional plan, you become eligible for the Buy Box, plus gain access to many tools within Seller Central. Note: you can drop down to an individual plan at any time.

With the Individual plan, you won’t pay a monthly fee. However, you will pay Amazon $0.99 (USD) for every unit you sell. So, if you sell 200 units on Amazon, you’ll pay $198 (200 x $0.99) back to Amazon.

With a Professional plan, you’ll pay $39.99 per month no matter how many units you sell. You also get access to many premium features, including sponsored ads, sales analytics reports, and essential inventory and listing tools.

For both, you’ll be subject to additional selling fees as noted below.

Referral fees: 8% – 15% on average

You don’t get access to Amazon’s gigantic audience for free. Each time you sell an item on Amazon, you pay a referral fee. Think of it as a commission that you pay to Amazon for the privilege of selling to its customers.

Referral fees are charged as a percentage of an item’s total sales price (TSP), which includes the item price, shipping cost, and any gift-wrapping charges. Referral fees vary by category and generally range between 8% to 15%.

A few examples:

  • Automotive and powersports – 12%
  • Backpacks/handbags/luggage – 15%
  • Clothing and accessories – 17%
  • Footwear – 15%
  • Home and Kitchen – 15%
  • Pet supplies – 25%
  • Toys and games – 15%

While most referral fees are flat percentages, some categories (like baby products, beauty products, and grocery items) take a tiered approach based on an item’s TSP. For instance, a baby product with a TSP of $10 or less is subject to an 8% referral fee, while a baby product with a TSP of $10 or more is subject to a 15% referral fee.

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The opposite is true for categories such as appliances, collectibles, electronic accessories, fine art, furniture, and jewelry. For furniture, you’ll pay a 15% referral fee for products with a TSP up to $200. But that fee goes down to 10% for furniture products with a TSP greater than $200.

All categories also carry a minimum referral fee. It’s most often $0.30 but may run higher. View the full list of referral fees by category here.

Amazon FBA fulfillment fees: cost varies

For any items enrolled in FBA, you pay a fee for each one that Amazon ships to a customer. Fees are based on the size and weight of each package that gets sent.

Amazon FBA fees fall into two broad categories: non-apparel and apparel. Within these, most packages will fall within the “small standard” and “large standard” size tiers.

Amazon charge to sell

Optional and additional Amazon selling fees

Amazon Ads: cost varies

Amazon Ads are a hot commodity these days, with nearly two-thirds of sellers using Sponsored Product Ads to promote their items. You, too, can take advantage of paid ad placements on Amazon. These ads are pay-per-click (PPC), meaning you only pay when someone clicks on your ad. The exact fee amount depends on the keyword you’re bidding on and your daily budget.

Premium account services: $1,600 per month + 0.3% of total monthly sales

Amazon offers a Strategic Account Services (SAS) Core program that connects you with an account manager, who can provide personalized tips on how to scale your business on the marketplace. As a SAS Core member, you get early access to new or beta programs, alongside tactical support. SAS Core costs $1,600 per month, plus 0.3% of your total monthly sales up until $5,000.

Rental book listing fee: $5 per rental

If you choose to rent out textbooks on Amazon, you will have to pay a rental book service fee of $5 per rental.

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High-volume listing fee: $0.005 per listing

For any non-media listings, if you have a large amount of active listings that haven’t sold in the past 12 months, you will have to pay Amazon a monthly fee of $0.005 per eligible listing to cover cataloging costs. This fee is waived for the first 100,000 listings.

Refund administration fee: $5 or 20% of referral fee (whichever is less)

When you refund a customer for an order that they’ve already paid for, Amazon will refund your referral fee minus the refund administration fee, which is either $5 or 20% of the referral fee (whichever is less). So, if you refund a customer the price of your product ($10) in a category with a 15% referral fee, your refund administration fee will be $0.30 ($10 x 0.15 = $1.50).

3 ways to save on your Amazon selling fees

Join the Brand Referral Bonus Program

If you’re a brand owner, make sure to join Amazon’s Brand Registry. Among the many perks of enrolling yourself in the registry, you can earn a bonus on any sales made through non-Amazon marketing efforts. Here’s how the Brand Referral Bonus Program works: You embed an Amazon-provided link to any non-Amazon marketing assets. If a customer clicks on that link and makes a purchase from you within 14 days, you’ll earn, on average, 10% back on your referral fee. The exact bonus rate depends on your product category and the number of sales generated.

Join the Small and Light Program

If you sell small products that weigh less than three pounds—and price them for $10 or less—then the FBA Small and Light Program may be for you. This will land you reduced shipping rates on qualified products. For example, a small standard item could cost as little as $2.35 to ship, as opposed to the usual $2.92 with regular FBA.

Watch your inventory levels

One of the best ways to avoid long-term storage fees or other inventory mishaps is by having a reliable system for tracking, forecasting, and managing inventory. If your online store is powered by Wix eCommerce, you can use built-in inventory management tools to automatically and accurately sync inventory across all of your sales channels.

Amazon charge to sell

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