If you are considering starting a new business, it is critical to understand how much it costs to sell on Amazon as it will help you run a profitable business. If you decide to take your business to Amazon, you will need to know the breakdown of Amazon seller fees so you know what to expect. Understanding the initial costs will help you manage your fees and run a lucrative Amazon business. If you need financial advice on how to start an Amazon business, please contact a trusted and adept Ebiz Accounting Amazon Seller CPA who can guide you on the right financial moves to get your business off the ground.
Why should I know how much it costs to sell on Amazon before starting a business?
As an Amazon seller, you will be required to pay a subscription fee. These fees are paid depending on the plan you have. Before you register to start selling you will be required to select a selling plan. On Amazon, these plans include Individual or Professional accounts. Fortunately, Amazon offers sellers flexibility when it comes to plans as they can switch plans whenever they like. It is important to select the right plan for your business. To do so, you first have to establish whether you will be selling one item or thousands. Once that has been established, you can choose an Individual plan which means you sell fewer than 40 items per month or you can choose a Professional plan where you sell more than 4o items a month. An Individual plan usually costs around $0.99 per sale. On the other hand, a Professional plan requires a monthly fee of $39.99, regardless of how many items are sold. Depending on the selling plan you choose, your subscription fees will vary. It is important to understand that on top of subscription fees, you will also face additional selling fees.
When it comes to selling fees, the fees are charged per item sold. This also includes any fees that are a percentage of the selling price. From here, you should consider shipping fees. When an order is fulfilled, Amazon shipping rates may apply. These rates are based on the category of products you have sold and the shipping method the customer has selected as their form of shipping service. It is also critical to evaluate Fulfillment by Amazon (FBA) fees. If you plan on outsourcing your shipping to Amazon these fees will apply. Ultimately, it is imperative to understand the initial costs you will have to pay to ensure you can manage all of the necessary fees.
For more financial advice on how to start selling on Amazon, please contact our dedicated and knowledgeable Ebiz Accounting team. You can rely on our company to help you make the right decision about starting an Amazon business.