Amazon Fees on Different Categories

Amazon is surely one of the best online marketplaces. Sellers can sell their products in a number of different ways on Amazon but one need to select the program prudently. Let us have a look at some of the ways in which sellers can sell their products on Amazon.

Selling to Amazon:

This is an invite-only program. Amazon will get the ownership of the inventory. Amazon can then sell these products to the Amazon consumers. Amazon will select the selling price and the shipping option.

Selling on Amazon:

You become a third-party seller on Amazon. You have to list the products on Amazon marketplace and sell your products as third party sellers on Amazon. This will involve more hard work as compared to the first option but the seller will also enjoy more control and better margins as compared to the first option.

Comparison between the two options:

Selling to Amazon reduces stress and headache. The seller does not have to worry about the logistics part. But there is a limitation in the marketing of products. If the seller wants more exposure and wants to enjoy the different benefits of Amazon market place then Selling on Amazon is always going to be a better option.

Those sellers who want to sell on Amazon need to select between Fulfillment by Amazon and Fulfillment in the house or by a service provider. Keep in mind that FBA may not always be suited for your online store.

A look at the fee structure for sellers on Amazon:

The fee structure of Amazon is easy to understand. It is not complicated. When a seller wants to sell on Amazon they need to pay a referral fee and a closing fee. The referral fee is paid on every item that is sold. A certain percentage of the sales price of every product is deducted as the referral fee. The percentage will be different for different products.

The seller will also have to pay a fixed closing fee. This fee is based on the item price that the buyer pays. This will also depend on the item. Under certain scenarios, cancellation charges will be applicable. It is normally 8.5% of the total value of the items in the order. One needs to be aware of the conditions under which the cancellation charges will be applicable.

Transparency of Amazon:

Amazon has a very transparent fee policy for different categories. The referral fees are charged only on when the product is sold. Amazon does not have any hidden charges or complicated fee systems. It must also be noted that they do not have any listing fees, payment collection fees and subscription fees.

The transparent fee policy of Amazon is also one of the main reasons that today it is the biggest online marketplace across the globe. The fees applicable will depend on the category of the product. For different categories there are different fees. One needs to go through the table on the Amazon website in detail as that will give a better idea about the fees that will be applicable.

Following is the detailed information about different fees that Amazon charge from sellers

Referral Fees

Sellers have to pay a referral fee on items sold on Amazon. Following is the details of referral fee for different products:

Closing fees

A fixed closing fee is paid on the item price that is paid by buyer.

If still you have any confusion about Amazon Fees then you can contact Faith eCommerce Services as we have team of expert who have years of experience in Amazon Store Creation, Amazon Product Listing and store optimization. For more details visit our business website https://www.faithecommerceservices.com/

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