Being part of the Amazon marketplace is a great way to make money, especially since Amazon has fast become an e-commerce giant. Therefore, understanding the Amazon seller fees associated with selling on the platform, as well as building a seller account is vital. Amazon seller fees structure can be somewhat complex and there are different categories that need taking into account before you launch your Amazon business.
What Is Amazon Professional Selling Plan and Individual Selling Plan?
Understanding the different Amazon seller plans is crucial for any would be Amazon seller. If you choose a Professional Selling Plan, there is a monthly Amazon seller subscription fee to pay, which costs $39.99 per month. An Individual Selling Plan is free, there is no Amazon seller subscription fee to worry about. However, there are “per-item fees”. Those that have an Individual Selling Plan are required to pay a $0.99 fee for each item sold.
There are no Amazon seller fees for those that have a Professional Selling Plan. Thus, it is crucial to get to know the said Amazon seller plans before totally venturing into the Amazon business.
Amazon’s Referral Fees:
There are also referral fees when using the Amazon platform and both selling plans require sellers to pay a fee for each item sold. In a way, the referral fee and the item fee for Individual Seller Plans make up for the lack of a monthly subscription. Amazon seller fees can differ per category and then on certain items within that category. Amazon’s Seller Central has a whole breakdown of each category and the prices associated. There are also some categories that require approval to sell in, this has to do with Amazon Gating. There are some categories that require certain products to only be sold by the Professional Selling Plan. This includes some products in luggage, shoes, art and some food items.
With the Individual Selling Plans, you do miss out on a few extras like offering gift wrapping and you are required to upload your listings manually. A point to note is that an Individual Selling Plan would only be beneficial for small sellers because of some of the item restrictions and the number of products you are able to sell. The Professional Selling Plan does not have restrictions on the number of products being sold.
What is Amazon Professional Selling Plan?
As we have already laid out, the benefits of a Professional Seller Plan can really add value to your business. If you are considered a “smaller” seller, the Professional Seller Plan would not be the right choice for you. For sellers who plan on selling around or over 40 items per month, the Professional Plan would be the right choice for you. Some of the other benefits that come along with the Professional Plan are the Amazon seller shipping rates.
With Amazon’s Professional Seller Plan, you have access to Amazon warehouses that would allow you to be an FBA (Fulfilled by Amazon) seller. In general, the company sets their Amazon seller shipping rates based on the product category and the shipping service that the buyer chooses. If you choose the FBA route, you are also charged a fulfillment storage fee, which is calculated by weight and amount of items. A note about the Buy Box here – Amazon generally favors FBA listings.
Amazon’s FBA Small & Light:
For Professional Amazon Sellers there is a program called, “FBA Small & Light”. This only applies to FBA sellers, but it is a perk of the Professional Seller Plan. Since Amazon charges a fulfillment fee for FBA sellers, which is based upon quantity and weight, it is good to know about FBA Small & Light service. This service is for sellers who sell small and lightweight items under $7.00 and store them in the Amazon warehouse. Amazon Small & Light helps reduce the cost of fulfilling small items. There are specific fulfillment centers for FBA Small & Light items.
To get a better understanding of the price differences for regular FBA and FBA Small & Light, go to Seller Central. There are also monthly storage fees for FBA sellers.
Some of the other benefits that come with having Amazon’s Professional Seller Plan are access to reports, the ability to run promotions, the access to being FBA, and the favorable shipping rates.
The takeaways from this post should help you understand which seller plan is right for you. The price differences are a factor, but selling more than 40 items a month will likely even out the cost for your Professional Seller Plan.
Once you have figured out which plan works best for you and take into account the Amazon fees, you’ll be ready to find a repricer that allows you to stay competitive and gain a higher share of the Buy Box.