What Is The Cost Of Selling On Amazon In 2021

Selling on Amazon is a great way for you to get into e-commerce. This is due to how convenient and beneficial it is. Amazon generated $108.5 billion in revenue during the first quarter of 2021. This is an indication of how quickly the e-commerce company has grown.

However, it is smart to start your Amazon selling journey if you are fully aware of the associated costs. Amazon seller fees are costs that you incur for fulfillment, inventory, and the use of Amazon as a platform for selling your products to potential buyers. Below are the costs of selling on Amazon.

Amazon listing and selling fees

Seller type

Amazon Seller Central allows you to register as an Amazon Individual seller or a professional seller. It depends on how big your business is and how many products are you planning to sell.

For those selling less than 40 items per month, the Individual Selling Plan is for you. The monthly subscription fee is not required, but Amazon will charge $0.99 per item. You also have access to Amazon’s seller resources, but this is not unlimited.

For businesses selling over 40 products per month, the Professional selling plan is for you. Sellers pay a $39.99 monthly subscription fee and are not required to pay any additional for each item they sell. Amazon also offers unlimited, full access to its seller services.

For a step-by-step guide to setting up your Amazon Seller Central account, you can watch the SellerApp tutorial.

Fulfillment fees

Amazon sellers have two options for fulfillment

• FBA
• FBM

FBA (Fulfilled By Amazon)

Amazon will take care of all fulfillment options for your products under this arrangement. This includes shipping to Amazon’s warehouses and product returns.

There will be a fee for each order. The amount you have to pay will directly reflect the order size. Higher fees will be charged for products that are heavier in weight and have larger dimensions.

Storage fees for one year starting in January at $0.69 to $2.40. After the year is over, additional charges will apply.

FBM (Fulfilled By Merchant)

This option allows a professional seller to choose the shipping rates that he prefers. The Professional seller will receive shipping credits based on the product category and shipping services that the customer chooses.

This could pose a problem as the seller must use appropriate shipping methods. This could lead to higher shipping costs than the actual shipping credit he receives.

Recommended guide: Amazon FBM.

Returns fees for customers

Amazon’s best selling point is its exceptional customer service. This is something you must adhere to as an Amazon seller. Customers can return or exchange their products at any time.

Sellers will have to pay for the return shipping costs of all items returned to the warehouse. You can track all of these factors using tools such as SellerApp’s FBA Calculator.

Referral fees

Amazon charges a referral fee per item that is sold to make your products available worldwide.

Referral fees range from 6% to 20%. The basic rate is typically 15% or $0.30. This rate varies depending on the product category and is calculated as an amount of the total sale price.

Advertising and photography are expensive

Advertising is essential for a seller’s success. It is important to carefully calculate the advertising costs. The average cost per click is $0.81, but it may vary depending on the campaigns.

To reach the largest audience possible, it is crucial to research your target audience and to spend as economically as possible. Tools that assist with managing your advertising can be used so you don’t need to do it manually.

Photography of products is essential for product listing and advertising. You will need to take professional photos of your products to stand out from your competitors. This will not only cost you money but will also help increase sales.

Reduce fees

There are ways to lower the cost of selling, even though they may seem inexorable. Here are some examples.

• A Professional seller account offers more options and benefits for your listings and more savings.
• It is more profitable to sell items that are lighter and have a greater profit margin. Warehouse storage fees are calculated based upon the item’s weight.
• Bundling can help you lower your fees as you pay fulfillment charges for the whole bundle, rather than for each item individually.
• Keep track of the exact amount you will be charged for storage and referral fees. Sometimes, there may be an error in listing listings that causes you to pay more.
• You can use the right tools to determine your costs and make sure you’re making maximum profits with data analysis tools.

To be a successful seller, it is important to cut down on unnecessary expenses. Amazon charges fees that sellers can use, which are not negotiable. However, it is important to remember all of the above information to minimize your spending.