Selling on Amazon FBA is an amazing work-from-home job. It can be a high-paying online business that’s flexible and works around your life and family. Here’s exactly what you need to know about Amazon FBA seller fees before you start your Amazon FBA business.
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Amazon Seller Fees
After you decide what to sell on Amazon FBA, the next step is setting your prices for the products you’re offering.
Figuring out the selling price of an item is an EXTREMELY important part of a business. Determining the price of a product can make the difference between a lucrative business that makes money and a hobby that costs you money.
Since I’m all about helping you make money from home, I want to give you the best information for selling on Amazon and that includes the Amazon FBA seller fees.
Amazon FBA stands for Amazon Fulfilled By Amazon, and it will have more seller fees than Amazon Fulfilled By Merchant (Amazon FBM)
When you’re calculating what you should charge for what you’re selling on Amazon, you need to factor in the fees you will pay.
These are all steps that I took when I had an online business selling books on Amazon.
If you’re new to Amazon FBA, you might want to start here: How Does Amazon FBA Work: Everything You Need to Know to Run Your Business.
Amazon FBA vs FBM
When I was doing research to figure out if I wanted to sell through Amazon FBA or Amazon FBM, for me there was a clear winner. I hate mailing things out and we have a small house where I just can’t store a lot of inventory.
For me it was a total no-brainer when I found out you can send boxes of inventory as you purchase it directly to Amazon and they deal with all the handling for you – love it!
You can read all about my experience selling on Amazon in my Amazon FBA review here. I share what I loved, and the one big thing I would have done differently.
Most people selling on Amazon use Amazon FBA, some sellers use a combination FBA/FBM, and the smallest proportion sell exclusively through Amazon FBM.
If you have time and space to store inventory you might want to do merchant fulfilled to save some money, it’s totally up to you. Also the way that Amazon fee structures work, selling large and heavy items generally favor Amazon FBM. If you are selling small, light things on Amazon it can come out to a better deal to use Amazon FBA.
Read on to find out what to sell on Amazon (that will be profitable!)…
What to Sell on Amazon
The best tool out there that I’ve found for Amazon product research is Jungle Scout. Jungle Scout gives you everything you need to find a product, source it from a supplier, list it on Amazon, and start selling. It’s seriously amazing! They also offer private trainings so your Amazon business will be successful.
Jungle Scout even offers a risk-free 7-day money-back guarantee so there is zero risk to try it out! My link here even gives you a special discount if you want to continue past the 7 days:
Here is a free tool from Jungle Scout that you can try out – an Amazon Sales Estimator. This handy calculator will show you the estimated number of sales per month for products you’re considering selling on Amazon. That way you will have a better idea of the products that are selling well on Amazon! Very important for your research.
Now on to Amazon FBA seller fee numbers…
Amazon FBA seller fees
This is a list of the Amazon FBA seller fees:
- FBA order fulfillment – between $2.41 to $4.71+ per unit (depends on weight)
- 30-day storage fee – between $0.48 to $2.40 per cubic foot (varies with season)
- Selling on Amazon referral fee
The Amazon seller referral fee will depend on if you choose the Individual or the Professional plan.
Let’s talk about those shall we?
Amazon FBA Individual Plan:
- Makes sense if you’re selling <40 items per month
- No monthly fee
- $0.99 fee per item sold
- Post sale fee that will depend on the item’s category
Amazon FBA Professional Plan:
- Pick this if you’re selling >40 items per month
- Monthly fee of $39.99
- Referral fee (usually between 6-15% of the selling price of the item)
- Post sale fee that depends on the shipping weight/dimensions, etc.
Optional Amazon FBA seller fees:
You can choose to add on any of these services if you’d like to be even more hands-off with your Amazon business:
- Amazon FBA label service
- Amazon FBA prep service
- Long-term storage fee
- Returns processing
- Inventory removal/disposal fee (ie. Amazon either destroys the unsold item or ships it back to you for a fee)
How to Calculate Amazon FBA Seller Fees
I love this calculator! It’s provided by Amazon and lets you see the difference in fees and revenue for your product whether you are selling by Amazon FBA or by Amazon merchant fulfilled. You enter a few basic numbers about your product and it will tell you the net profit and net margin in both cases.
From those numbers you can decide which products make sense to be sold through Amazon FBA vs Amazon FBM.
Now for massive inspiration, read my interview with 6-figure Amazon seller Jessica Larrew. She makes over $100,000 a year selling on Amazon part-time while spending tons of time with her family. Total work-from-home goals!
Even if you’re not a beginner at selling on Amazon, you should take this course because I bet there will be something you don’t know in it.
Take care guys and happy selling!