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Digital Charges Paid by Amazon Sellers- Understand the Fee Structure

Selling products on Amazon is undoubtedly one of the most effective ways to increase sales and take the business to new heights. Amazon offers a fantastic opportunity to sell on its platform; however, the complex fee structure of Amazon confuses many. It is essential to understand the fee charged by Amazon to avoid any impractical expectations related to profit.

Selling products on Amazon is undoubtedly one of the most effective ways to increase sales and take the business to new heights. Amazon offers a fantastic opportunity to sell on its platform; however, the complex fee structure of Amazon confuses many. It is essential to understand the fee charged by Amazon to avoid any impractical expectations related to profit.

Here is the detailed overview of the charges levied by Amazon on its sellers, including repayment and various other charges:

THINGS TO KNOW BEFORE SELLING ON AMAZON

When you register for a seller account, you must thoroughly read Amazon’s seller agreement and the terms and guidelines associated with it. Even if you are an experienced seller, you must understand that the terms and guidelines are different for every platform.

Points to Remember about your Seller Account:

1. As an Amazon Seller, a “single seller account” is created for your business.

2. Provide clear information about selling policies to win the trust of customers.

3. Offer a favorable return policy to your buyers.

Note: You must avoid operating or even maintaining multiple seller accounts on Amazon, or you may have too heavy a penalty for it.

AMAZON FEE STRUCTURE

All the fee charged by Amazon from including promotional charges or any modification in fee structure is to notify the seller from time to time.

However, it is essential to remember that providing such information from Amazon does not apply to sellers like warranty providers or any other service providers, who pay their selling fee as per agreement on charges mentioned in their deals.

SELLER ACCOUNTS ON AMAZON

There are two types of seller accounts on Amazon:

  • Individual seller account
  • Professional seller account

The monthly subscription fee for a professional selling plan is $39.99  and completely free of cost for an individual selling plan.

SELLING FEE

On generating a sale from your product, Amazon collects the amount paid by the buyer, which includes the shipping price, gift wrap charges and any other rate involved. However, only a seller with a professional account can offer the gift wrap option.

PER-ITEM FEES

Zero per-item fees need to be paid by professional sellers; however, $0.99 is charged for every item sold by individual sellers.

REFERRAL FEES

Amazon charges a specific referral fee for every item that is sold. However, minimum referral fees charged for particular items of particular item categories.

The referral fee charged by Amazon is calculated based on the total sales price, excluding the tax calculated with the help of the tax calculation service offered by Amazon.

CLOSING FEES

Amazon charges a closing fee of $1.80 on every sold media item.

HIGH-VOLUME LISTING FEES

A high-volume listing fee of $0.005 is charged every month for eligible ASINs for covering the system cost associated with cataloguing and maintaining more significant numbers of ASINs.

REFUND ADMINISTRATION FEES

When you create a refund of your consumer for any order for which you have already received the payment, Amazon refunds the referral fee amount paid by you for the specific product minus excluding the Refund Administration Fees. It is 20% of the referral fee.

AMAZON SELLER REPAY CHARGES

A fixed amount of $39.99 is charged for every “Professional Seller account.” Whether there is any sale or not, this fee is charged.

Any other queries, do connect with the Simpl Fulfillment team to offer guidance.

Learn More: When Does Amazon Charge You As A Seller