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The Full Costs of Selling in Amazon Stores | What You Should Know

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The Full Costs of Selling in Amazon Stores | What You Should Know

The Full Costs of Selling in Amazon Stores | What You Should Know

As an entrepreneur selling in Amazon stores, you might be familiar with the costs assorted with selling plans, referral fees and fulfillment fees, but you might not be aware of the other costs. You most likely want to sell products in the most cost-effective manner possible. Please continue reading and reach out to AVASK Group to learn what you should know about the full costs of selling in Amazon stores.

What are these “other costs” on Amazon?

These other costs are broken down into additional selling fees and optional programs. They are as follows:

Additional selling fees:

  • Inventory fees: If you store inventory in an Amazon fulfillment center – available to sellers who use FBA or Multi-Channel Fulfillment – in addition to monthly inventory storage fees, you may incur long-term storage fees and removal order fees.
  • Rental book services fees: If you offer textbook rentals, expect to pay a rental book service fee of $5.00 for each rental.
  • High-volume listing fees: When you have a high volume of active, non-media listings that haven’t sold in 12 months, Amazon charges a monthly fee of $0.005 per eligible listing to cover cataloging costs.
  • Refund administration fee: If you refund a customer for an order for which you’ve already received payment, Amazon will refund you the amount of the referral fee minus the applicable refund administration fee.

Optional programs:

  • Advertising: Attract customers before they realize they need your product. Amazon uses a cost-per-click, auction-based pricing model.
  • Fulfillment by Amazon: Amazon takes care of your shipping, returns and customer service.
  • Inventory placement service: Your product will be spread across multiple fulfillment centers, so customers can get their orders faster.
  • Amazon-partnered carrier program: Amazon-partnered carriers offer discounted rates when you send inventory to a fulfillment center.
  • Premium account services: Premium account management and other services are available to develop your business plan, provide individualized coaching and training and advise you on how you might grow your sales on Amazon.

If you want your business to thrive, you will need to account for these fees and consider subscribing to these services. Please do not hesitate to give us a call today if you have any additional questions about these fees or any others. Our team is here to help you.

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.

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