Now you have decided to resell your products on Amazon going here. You also have a large amount of unneeded stuff you are willing to sell for cash. Amazon fees are something you need to consider before listing these items.
Amazon is a business. They make money from your sales. These Amazon fees can quickly add-up if you don’t pay attention and are careful. Don’t worry, there are ways to reduce the impact these fees have on your revenue.
Let’s discuss the actual costs you’ll be paying when you sell on Amazon. The most common is the referral fee. It’s a small percentage of the sale price of your item. This price will vary depending on the item you purchased, but usually hovers around 15%. Amazon will charge $15 for each $100 item that you sell as a referral fee.
Additional fees include a flat fee and a variable close fee. This cost can vary depending on your goods category and range between $0.99 and $1.35.
You should also consider the fulfillment fee. It varies depending upon the item’s size and weight, but could quickly add up if you use Fulfillment by Amazon (FBA).
Let’s talk about strategies to decrease the revenue impact of fees. You can market products with a greater profit margin. You will make $85, if an item is sold for $100 and you receive $15 in commission, then you are making $85. You will also make $425 if the item is sold for $500.
Another way to cut costs is to sell goods for a lower referral fee. If you are selling books, the referral fee is 6%. This is much less than the 15% price for most other goods.