Selling some of your products on Amazon can be a great way to increase your sales and grow your business. However, it is not free. People often forget about that, leading to unrealistic profit expectations.
Before you start selling on Amazon, it’s important to be aware of the cost involvement. These take the form of various seller and subscription fees and can add up to a substantial amount. To give you an overview, we are going to sum up the most important Amazon seller fees for UK-based organisations.
Costs to be aware of when selling on Amazon
How much does Amazon charge you to sell?
The Basic selling plan is generally for individuals who wish to sell occasionally (fewer than 35 items per month). It comes without a subscription fee but with per-item fees instead. The Pro plan, on the other hand, is the preferred option for professional sellers. You have to pay a monthly subscription fee, but no per-item fees.
Amazon basic seller account
When you expect to only occasionally sell on Amazon, it might be worth looking into the Basic selling plan. It provides you with more flexibility and comes without any commitment. You sell whenever you want and pay only when you sell something.
The fees of Basic selling are made up of three components:
- Per-item fees
- Referral fees
- Variable closing fees
The per-item fee is £0.75 per item sold and gets deducted from your credit. You will also have to pay a referral fee for each item sold, which depends on the item category. For most categories, the fee is between 7% and 15%. This fee is calculated based on the total sum paid for the item by the buyer, including all applicable taxes and customs fees. Thereis also a per-item minimum referral fee of £0.40 in most categories. You can find a detailed list of referral fees per category here. In addition, there is also a fixed closing fee that is charged at 50p for all Media products.
The Basic plan can be great if you’re just dipping your toes into the Amazon, if you want to sell more than 35 items per month, it might not be the right option. If that’s the case, you should have a look at the Pro selling plan instead.
Amazon Pro seller account
As a retailer with ambitions to sell hundreds of items per month, the Pro selling plan is a most suitable fit. It also comes with some other advantages, like eligibility for 1-click purchase, order reports, automation tools, and access to more categories.
The fees of Pro selling are also made up of three components:
- Monthly subscription free
- Referral fees
- Variable closing fees
There are no per-item fees in the Pro selling plan. Instead, there is a monthly subscription fee of £25 (excl. VAT) per month. You will have to pay this fee no matter if you sell something or not. The subscription fee is assessed every month and listed in your Seller Account payments summary. It will be charged against any sales you have made. If your account balance is more than £25, it will be taken from there. Otherwise, it will be deducted from your credit card. Be aware that VAT applies to the subscription fee. However, if you are a VAT registered seller, you may be eligible to VAT-exclusive seller fees.
The referral fees are generally the same as with the Basic plan, so between 7% and 15%, depending on the category with a minimum referral fee of £0.40 for most categories. The closing fees are also the same as with the Basic plan: £0.50 per Media item. You can find a detailed table of the current fees here.
If you realise that Amazon isn’t for you, then you can cancel your Pro subscription at any time.
Fulfilment by Amazon
As an Amazon seller, you can either handle fulfilment yourself or use Amazon’s own fulfilment service, Fulfilment by Amazon (FBA). This, is essence, means you can focus on selling and promotion of your products, and Amazon will pick, pack and despatch the, for you.
The costs involved with Fulfilment by Amazon
Having Amazon fulfil your orders will result in some costs. This is especially true for large, bulky or heavy items and items that stay in stock relatively long. Generally speaking, FBA fees always consist of a:
- Fulfilment fee
- Storage fee
The fulfilment fee is a flat fee per unit and is based on the item’s dimensions and weight. The storage fee is calculated per cubic foot per month, pro-rata. You can calculate your FBA fees using .
Returns with Amazon FBA
If you decide to go down the Amazon fulfilment route, there will be some returns fees to take into consideration. When an Amazon user marks an item for a return through the Amazon online centre, you’re charged a processing fee. This fee is based on the size and weight of the item being returned, and the amount paid for each time of item is listed under fulfilment fee in this chart.
For more information about selling on Amazon in 2020, check out our selling guide.