By Ben Miles
Amazon Seller Fees
What Are Seller Fees?
Seller fees are fees you have to pay to Amazon for trading on their marketplace and using their services. There are a variety of fees sellers may have to pay, depending on the type of product you are selling and which (if any) of Amazon’s services you choose to use in the process. Seller fees can be divided into two different categories, Amazon seller fees and FBA fees.
Amazon Seller Fees
1. Monthly Subscription Fees
Amazon sellers decide between having a Basic or Pro seller account. The Basic account is free to set up however you have to pay a ‘per-item fee’ to Amazon of £0.75 (plus VAT) for every item sold.
The Pro account is £25 (plus VAT) per month however there is no ‘per-item fee’.
(The ‘Monthly Subscription fee’ is not shown within the ProfitSourcery fee breakdown.)
2. Referral Fees
For every item you sell on Amazon you will be charged a referral fee. This is essentially Amazon’s fee for directing the customer to you.
For items in ‘Media’ categories (books, music, video games, VHS, blu-ray and DVDs) the fee is calculated as 15% of the total cost to the buyer excluding shipping.
For ‘Non-Media’ items (everything other than books, music, video games, VHS, blu-ray and DVDs) this fee is charged as a percentage of the total amount paid by your customer for the item including shipping.
The referral fee percentage for non-media items varies depending upon the parent category of the product. To check Amazon UK seller referral fees, click here.
(The ‘Referral Fee’ is calculated for all the products you find on ProfitSourcery; it is part of the ‘Amazon fee’ breakdown.)
3. Variable Closing Fee (VCF)
When a customer makes a purchase Amazon take the shipping fee at the time of the sale. A ‘Variable Closing Fee’ is deducted from the shipping fee before Amazon pass the rest onto you as postage credit (i.e. the money you use to pay for the actual posting of the item). The VCF applies to all media products (books, music, video, blu-ray & DVDs).
If you are using FBA you will still need to pay a VCF on media products. However you do not receive postage credit from the sale as you are not posting the item yourself. To check Amazon UK variable closing fees, click here.
(The ‘Variable Closing Fee’ at the moment is not calculated within the ProfitSourcery fee breakdown.)
FBA Seller Fees
Using Amazon’s FBA service means you have additional fees added on top of the Amazon seller fees you pay. Here is a breakdown of the different fees you should expect to pay using the FBA service:
4. Fulfilment Fee
The fulfilment fee is Amazon’s charge for taking your item from the warehouse, packaging it and shipping it to your customer. This is a flat fee based on dimensions and weight. This fee is not just based on the weight of the shipment but also the packaging type (e.g. small envelope, standard envelope or standard parcel). This varies depending on whether the product is a media, non-media or oversize item.
If the product you sell is worth more than £300 then a fulfilment fee is not charged. To check Amazon UK fulfilment fees, click here.
(The ‘Fulfilment Fee’ is calculated for all the products you find on ProfitSourcery; it is part of the ‘FBA fee’ breakdown.)
5. Monthly Storage Fee
Storage fees are charged on a monthly basis based on your daily average stock volume. Essentially the more space your stock takes up the more you pay.
Between the months of January and September this is charged at £0.30 per cubic foot (or £10.59 per cubic metre). Between October and December this increases to £0.40 per cubic foot (or £14.12 per cubic metre).
To see the Amazon UK monthly FBA storage fees, click here.
6. Long-Term Storage Fee
Twice a year you will receive a notification from Amazon regarding long-term storage fees. These fees are charged against any units which have been in the fulfilment centre for a year or more. This is designed to prevent you from using Amazon’s warehouse as a dumping ground for stock you can’t shift. This is a fairly substantial charge. The long-term storage fee per cubic foot is £25 (or £882.50 per cubic metre).
Though long-term storage fees are pricey, don’t worry! Amazon warn you about a month before the charge is due by telling you which items will be charged and for how much. This gives you a chance to lower your prices to try to move the stock or you may choose to have the stock shipped back to you for a small charge. If the stock is really not selling at all you may choose to cut your losses and ask Amazon to dispose of the items for you for a minimal fee.
To see the Amazon UK long-term FBA storage fees, click here.
(ProfitSourcery does not calculate any storage fees within the fee breakdown.)
7. Optional Services
If you are using FBA there are additional services you can ask Amazon to fulfil for you. These include applying labels to your products, applying additional bubblewrap or other packaging to items.
Optional services can save you huge amounts of time and effort so sometimes it’s well worth opting to use them. To see more information about the optional FBA services, click here.
(ProfitSourcery does not calculate any optional service fees within the fee breakdown.)