Amazon Selling Fees Explained: What You Need to Know

Selling on Amazon is a massive opportunity for entrepreneurs looking to tap into a vast online marketplace. Majority of small to medium sized businesses (SMBs) contribute to more than a majority of Amazon’s total sales, leading to more sellers to start their journey into the e-commerce world.

But the biggest question lies: what are the costs involved in selling on Amazon?

Whether you're currently an Amazon seller or considering becoming one, understanding these costs is crucial for developing a profitable selling strategy. Here's a breakdown of Amazon's current selling fees.

• Amazon Monthly Subscription Fee
• Shipping Fees 
• Referral fees
• Category and Subscription Dependent Fees

We’ll guide you through these fees and show you how to estimate your costs for each product sold.

Amazon Monthly Subscription Fee

When you set up your Amazon account and get ready to sell, you'll need to select a selling plan. Amazon provides two choices:

• 
  Individual Plan: No monthly subscription, but you pay $0.99 per item sold plus the referral fee.
• Professional Plan: $39.99 monthly, with no additional per-item fee.

Shipping Fees 2024 Update

To ship the items you sell, you may choose either of the following options for your listings:

• 
  FBM (Fulfilled By Merchant): The seller is responsible for packing, preparing shipping labels, and handling the shipping.
• FBA (Fulfilled by Amazon): The seller sends their inventory to Amazon, which then handles customer service, refunds, shipping, and labels.

As of February 5th, 2024, Amazon updated the rates for standard size and bulky & extra-large tiers. These updates have been implemented as of April 15th, 2024.

Size tier

Shipping weight

2024 fulfillment fee

Small oversize

70 lb or less

$9.73 + $0.42/lb interval above first lb

Medium oversize

150 lb or less

$19.05 + $0.42/lb interval above first lb

Large oversize

150 lb or less

$89.98 + $0.83/lb interval above first 90 lb

Special oversize1

Over 150 lb

$158.49 + $0.83/lb interval above first 90 lb

Amazon Referral Fees 2024 Update

Some fee changes have been implemented starting in January 2024. To summarize:

Amazon will drop the referral fee to 5% for items costing less than $15, rather than the typical 17%.

For items priced between $15 and $20, the referral fee will be lowered to 10% instead of 17%

Category and Subscription Dependent Fees

Different charges based on the size of your item and the category it’s in will apply to selling on Amazon. Certain categories have unique fee structures or additional costs. For example:

• Dangerous Goods: Items that require special handling due to their hazardous nature may incur higher fees.
• Media Products: Books, DVDs, and CDs might have different fee structures compared to other categories.

Understanding the various fees associated with selling on Amazon is crucial for any successful seller. From referral fees to fulfillment costs and special category charges, being aware of these expenses helps you plan your pricing and business strategy effectively. By leveraging Amazon's range of tools and services, you can tailor your approach to fit your business needs and maximize profitability. Remember, the key to success on Amazon lies in careful planning and smart use of the available resources. Happy selling!