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Is it Expensive to Sell Products on Amazon?

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Is it Expensive to Sell Products on Amazon?

Is it Expensive to Sell Products on Amazon?

For many people, selling products on Amazon as an Amazon Seller is an extremely lucrative business, especially over the course of the last couple of years. That being said, if you are considering selling your product on Amazon, you are most likely wondering how much it costs and how profitable it can truly be. Please continue reading and speak with AVASK Group to learn more about how much it costs to sell your product on Amazon.

Does Amazon offer different selling plans?

Yes, it does. The two types of selling plans are Professional and Individual. Those who choose the Individual plan will have to pay $0.99 per item they sell (on top of additional fees). Those who choose the Professional plan will pay $39.99 per month (and additional fees) regardless of how many items they sell–basically, it’s a flat rate. Those who sell less than 40 items per month may be best off with the Individual plan, and those who already have established businesses and sell more than 40 items per month should consider the Professional plan.

What is a referral fee on Amazon?

Every time you sell an item through Amazon, you will receive a referral fee. Essentially, Amazon will take between 8% and 15% of your earnings on each item sold.

Should I use FBA? How much does it cost?

FBA, or Fulfillment by Amazon, is a shipping service that you can use, and many Sellers find that using FBA is the most cost-effective and efficient means to ship their product. However, you can choose to ship products on your own, so the type of shipping you choose should depend on the type of product you sell and the size of your business as a whole.

While these are the majority of the things you will have to pay for when looking to sell your product on Amazon, you will most likely incur additional fees at some point, such as inventory fees, rental book services fees, high-volume fees, and refund administration fees. You should also note that many companies purchase advertisements on Amazon, which is something you may consider, as this is a great way to help your business reach new audiences. For any further questions, give us a call today.

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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.

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