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What to Know About the Expenses of Selling Products on Amazon

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What to Know About the Expenses of Selling Products on Amazon

If you are considering selling your products on Amazon, you may be wondering how much it will cost and how profitable it can be. To learn more about the expenses of selling on Amazon, continue reading. For further assistance with your Amazon business, do not hesitate to speak with AVASK Group. We can assist you in growing your business.

Here are some questions you may have about the expenses of selling products on Amazon:

What are the different selling plans that Amazon offers?

The two types of selling plans that are offered by Amazon are the Professional plan and the Individual plan. The Individual plan requires individuals to pay $0.99 per item they sell, on top of additional fees. The Professional plan requires individuals to pay $39.99 per month, plus additional fees, regardless of how many items they sell. Selling less than 40 items per month may mean that the Individual plan is best for you. If you sell more than 40 items per month, you should consider the Professional plan.

What is a referral fee?

You will receive a referral fee each time you sell an item through Amazon. This means that Amazon will take between 8% and 15% of your earnings on each item that you sell.

Should I use FBA?

Fulfillment by Amazon is a shipping service that many Amazon sellers use as a cost-effective means to ship their products. Amazon sellers do have the option to ship products on their own. The type of shipping you choose should depend on the type of product you sell and the size of your business as a whole.

You should also note that you will likely incur additional fees at some point such as inventory fees, rental book services fees, high-volume fees, and refund administration fees. You may also want to look into purchasing advertisements on Amazon to boost your product visibility.

To learn more about the expenses of selling on Amazon, do not hesitate to contact our experienced Amazon CPA, Timothy E. Nelson, CPA. Give our team a call today to learn more about our services and how we can assist you in growing your Amazon business. For any further questions, contact us today. We are looking forward to hearing from 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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