If you are thinking about becoming an Amazon seller, you might be wondering how much you should expect to spend to become one. Continue reading and speak with our experienced Amazon CPA today to learn more about the process.
What are the differences between selling plans on Amazon?
There are two types of selling plans that Amazon offers: Professional and Individual. The Individual selling plan will cost $0.99 per item sold as well as additional fees. The Professional plan will cost you $39.99 per month as well as additional fees regardless of how many items you sell. If you are planning to sell less than 40 items per month, the Individual selling plan may be best for you. This is often chosen by sellers who are just starting out their business that are still considering which items are worth selling on the platform. The Professional plan may be the best option if you sell 40 or more items per month, you are looking for top placement on product detail pages, and you plan on using advances selling tools.
What is a referral fee?
Amazon will charge you a referral fee when you sell an item through their platform. This means that they will take a percentage of your earnings on every item sold. Referral fees are anywhere from 8% to 15% depending on the type of item sold.
What is a fulfillment fee?
The fulfillment fee will depend on whether you wish to fulfill item shipment on your own or if you chose to use Fulfillment By Amazon (FBA). Many Amazon sellers have chosen to use FBA to fulfill their orders to save money. However, this will depend on your individual situation. This is why it is important to retain the services of our experienced Amazon CPA who can assist you in determining which method of fulfillment is best for you and your practice.
Are there any additional costs?
There will be certain additional costs as an Amazon seller depending on your business. This could include rental book service fees, refund administration fees, inventory fees, high-volume listing fees, and more. If you plan on advertising on Amazon, you will also be required to pay various other fees for this feature.
If you have any further questions or concerns about beginning your Amazon seller journey, feel free to give our experienced team a call today.
Contact Our Team
If you are an Amazon seller and require the assistance of an experienced Certified Public Accountant, please contact Ebiz Accounting for an initial consultation. We provide Amazon business accounting services to clients in New York and throughout the United States. All Amazon sellers should have an accountant they can trust. If you are looking to expand your business, or even form a new one, do not hesitate to reach out to our knowledgeable team today.