📦 Amazon FBA Fees: A Comprehensive Breakdown
If you're considering selling on Amazon, you may be wondering about the fees associated with using their FBA (Fulfilled by Amazon) service. In this article, we'll break down the costs of using Amazon FBA, including the fees associated with both individual and professional seller accounts, as well as the fees for storage, shipping, and returns.
🤔 Individual vs. Professional Seller Account
When signing up for an Amazon seller account, you have two options: the individual seller account or the professional seller account. The individual selling fee is $0, making it a good option if you don't yet have a product idea or if you're just wanting to start off and check it out. However, you will have to pay an individual per item fee of $0.99 per item sold.
The professional selling account costs $40 per month, but it's the best option if you're looking to sell at least 40 units per month or if you have multiple products that you want to sell. With the professional selling account, you'll have access to the best perks with selling on Amazon FBA, including the possibility of branding your listing.
💰 Fees Associated with Both Accounts
Whether you choose the individual or professional seller account, you'll still have to pay fees associated with selling on Amazon FBA. If you choose the individual selling account, you'll be responsible for all the work associated with sending out orders, including shipping and packing your product. Shipping can be pretty expensive depending on where you're shipping your product to, and you'll also have to handle any returns that come in for your product.
If you choose the professional selling account, Amazon takes care of everything associated with your product. Amazon is picking and packing your product, shipping out any orders that come into your listing, handling all returns, and the customer service aspect of it.
📦 Fulfilled by Amazon (FBA) Fees
Fulfilled by Amazon (FBA) is the best option for long-term success on Amazon. With FBA, Amazon takes care of everything for you, and your product is prime eligible, meaning customers will be able to see that on the listing and they'll get their product in two days.
However, there are fees associated with using FBA. Amazon charges a referral fee for Amazon exclusive products, which is 15% of the selling price. There are also monthly Amazon FBA fees, which include order handling fees, pick and pack fees, and weight and handling fees.
The cost of these fees will vary depending on the size and weight of your product. Amazon has a product tiers system that you can use to figure out where your product falls. If your product falls under a standard size, it would be about $2 to $9 per unit. For an oversized product, the range would be $3 to $10.
📦 Storage Fees
When you send in products to Amazon's warehouse, you'll have to pay for storage fees. For regular storage fees, it's $2.25 per cubic foot. For long-term storage fees, which applies after having units in the warehouse for more than six months, it can cost up to $3.45 per cubic foot.
It's important to keep track of your inventory and not overstock your product. Amazon charges more for storage during the holiday season, from October to December. There is also an additional cost for return of items, which is typically around $1 per unit.
🤔 Choosing the Right Option for You
Ultimately, whether you choose the individual or professional seller account, or FBM or FBA, depends on your goals and how you see yourself selling your product. If you're thinking short term, the individual selling account or FBM may be a good option. If you're thinking long term and want to scale your business, the professional selling account or FBA is the way to go.
🎉 Highlights
- Amazon FBA is a great option for long-term success on Amazon
- There are fees associated with both individual and professional seller accounts
- FBA fees include referral fees, monthly fees, and storage fees
- It's important to choose the right option for your goals and how you see yourself selling your product
❓ FAQ
Q: What is the difference between the individual and professional seller account?
A: The individual selling account is free, but you'll have to pay a per item fee of $0.99. The professional selling account costs $40 per month, but you'll have access to the best perks with selling on Amazon FBA.
Q: What are the fees associated with using Amazon FBA?
A: FBA fees include referral fees, monthly fees, and storage fees.
Q: Is FBA worth the cost?
A: If you're looking for long-term success on Amazon, FBA is definitely worth the cost.
🌐 Resources
- [Amazon Seller Central](https://sellercentral.amazon.com/)
- [Helium 10](https://www.helium10.com/)
- [How Much It Cost Me to Create Vino Cards](https://www.youtube.com/watch?v=JZJZJZJZJZJ)
