22 May How much does it cost to sell your products on Amazon?
There are several factors that determine and define the final expense that a seller must assume when marketing their products on Amazon; Some of them are the sales plan, the item category, and logistics management. There are many ways to organize and structure these plans and services to make the sale as productive and beneficial as possible.
Below, we will show you and explain what these factors are and what issues you should take into account to get the maximum profitability in your sales.
The selling plan you choose will depend mainly on the number of products you plan to sell and their categories. There are two different plans, the most basic being the Individual Plan where the rate you must pay is €0.99 per product sold; and, on the other hand, the Professional Plan where there is a fixed fee of €39. These prices do not include any potential additional selling fees that we will explain later.
While the individual rate is aimed at those brands that sell less than 40 products per month, the professional rate is aimed at those stores with a greater reach and, above all, with broader needs in terms of management and organization.
Regardless of which plan you belong to, for each product sold you have to pay a referral fee. This is nothing more than a percentage of the total sales price, which includes the cost of the product and its shipping and/or packaging.
The amount of the referral fee depends on the category of the product, as the percentages vary according to its nature. On Amazon’s own page you have a table where you can find all the necessary specifications to know the cost of your products.
Fulfillment expenses depend on the product shipping plan you’re working with, whether it’s on your own or through FBA services.
If you manage the shipments yourself, Amazon will charge those handling fees and then offer you that revenue in the form of a shipping credit. In addition, while sellers on the professional plan set their own shipping rates – except for books, music, video, and DVDs, whose prices you can see published on Amazon – sellers on the individual plan set these prices according to the parameters set by Amazon.
If you use the Fulfilment by Amazon option, you will only pay for the services you use, which are summarized in the fulfillment fees (established in a fixed fee per unit, type of product, size and weight) and the storage fee (calculated in cubic feet per month).
On Amazon’s website you can find a section that explains in detail everything related to the different rates mentioned.
When you are going to make an estimate of the final expenses that you will have to take care of when selling on Amazon, you cannot forget about those that we will discuss later. Some of them are fixed and others belong to optional programs, but you need to know them all in order to make the best decisions about your sales process.
First of all, within what are the additional selling fees are the following:
- Inventory charges: When storing inventory in an Amazon fulfillment center, you should be aware that for both Amazon-only fulfillment and multi-channel fulfillment, you may have to pay an extra charge for long-term storage or for exceeding the set amount.
- High-volume listing fees: This is a fee you have to pay if you exceed 2 million SKUs in any month.
- Refund handling fee: This fee is given in cases of refund, as it is a matter managed by Amazon and involves an expense of less than €5 or 20% of the applicable referral fee.
On the other hand, within the optional programs you can make use of the Amazon Advertising service to manage everything related to the advertising of your products and your brand within Amazon.
In the same way, you can also make use of Fulfillment by Amazon, which we mentioned earlier, which consists of letting Amazon take care of all shipping, returns and customer service procedures in full.
As you can see, there are many different services and consequent expenses that you must take into account when starting to sell your products on Amazon. However, all of them are perfectly detailed and analysed on the sales website itself and, in addition, from Nozama we help you choose and use the best plan for you and show you how you can get the most out of it.