Amazon Seller Fees

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How much does it cost to sell on Amazon ?

Amazon is the world’s biggest online marketplace and you can register your business on amazon and start selling online. Seller Registration, adding products on amazon is absolutely free but the sellers will be charged a small fees for every order fulfillment.

The Amazon Seller Fees will depend on the category of the product and based on the amount you charge to the customer . 

This guide will help you understand how you will be charged amazon seller fees for selling products on amazon. This is a complete guide on amazon fees, we will discuss all the applicable amazon fees in details with the help of examples. Also I will be showing you how you can make you of amazon pricing calculator to calculate the profit/loss ratio on your products.

Amazon Seller Fees

Amazon Referral Fees

Amazon referral fee is charged based on the category of your products. The referral fees will start from 2% and varies by product category. You can check the referral fee for every category on amazon official website.

How to check Amazon Referral Fees 2019 ?

  • Once you will visit the amazon official website, scroll down the page and you will see a option of “Find out the Referral Fees for your Product category“.
  •  Below this option you will see a dropdown in which all the categories are listed. Select the product category for which you wish to know the amazon fees.

Amazon Fixed closing Fees

Fixed Closing Fees is charged based on the selling price of your item and the shipping method you have opted ie amazon easy ship or amazon self ship.

Amazon Easy Ship – Amazon Easy Ship is the shipping service offered by amazon. Amazon has its own transportation company ATS (Amazon Transportation Company) which offer easy ship services to the sellers.

Amazon Easy Ship Prime – The service is currently on invite basis to only limited sellers. 

Amazon Self Ship – If your pincode is not eligible for amazon easy ship then you can opt for amazon self ship and use third party courier services to deliver your orders to customers.

Amazon Easy Ship

Easy Ship fee is charged based on the item weight and shipment distance.

Click here to learn about amazon easy ship in details. 

Note – All the fees which are mentioned above (referral fee, fixed closing fee and the easy ship fee) are excluding of 18% GST. 18% GST will also be added to these fees.

How to calculate product selling price on amazon seller central ?

As of now we have learn about amazon seller fees  and we are now able to calculate the selling price of our item to sell on amazon.

Selling Price (SP)  = Cost Price (CP) + ({Amazon referral fee + Fixed Closing Fee + Easy Ship Fee} +18% GST) + GST to be paid to government

Let say we want to sell a product in category “Accessories – Electronic, PC and Wireless” which have a commission rate of  16.5%.

Let cost price of item = INR 250 (Includes input GST + Transportation charges to buy it + Storage charge to kept it)

Let say the selling price of item = INR 550

Referral fee charged on referral fee = 550 * 16.5/ 100 = INR 90.75

Fixed closing fee charged  = INR 20 ( in case of (Easy Ship) excl. easy ship prime)

Easy Ship Fee
Let the weight of the item = 400 gms
Dimension  = 20 cm * 20 cm * 10 cm
Volumetric weight = 20*20*10/5 = 4000/5 = 800 gms
Volumetric weight is greater than actual weight. So, Volumetric weight will be used to calculate the charges.

Let say the shipment is a regional shipment then,

Easy Ship Fee Charged = INR 46 (For first 500 gms) +  INR 21 (For next 300 gms) = INR 67

Amazon Fee Charged = 90.75 + 20 + 67 = INR 177.75

GST on Amazon Fee Charged = 177.75*18/100 = INR 31.95 { Can be claimed while filing GST return}

Total Amazon Fee Charged = 177.75 + 31.95 = INR 209.74

Let say GST to be paid  = 12%

GST = 550*12/100 = INR 66

Profit = Selling Price – Cost Price – Amazon Fees Charged – GST = 550 – 250 – 209.74 – 66= INR 30.26

Note  – GST charged on amazon fee as well as on the cost price can be claimed while filing GST monthly return.

So Net Profit = 30.26 (Profit) + 31.95 (GST on Amazon Fee charged) + 26.78 (GST on Cost Price) = INR 88.99

Please note that I have not included the product packaging cost and the return product cost as of now. Please include these costs as well while calculating the selling price of your products on amazon. 

*Return cost will be generally taken as 2% of the selling price.
*Packaging cost will be generally taken in range (INR 20 – INR 50) depending upon the type of item and material you have used.

Amazon Pricing Calculator

Enter the name of the item you want to sell and click enter.

Enter the product price or selling price.

Referral fees and the closing fees will appear on the screen.

Choose the option “Ship using Amazon Easy Ship”.Now there are three option “Local” , “National” and “Regional” .You can check the fees for any option by selecting the required option.

Enter the weight of item in gms (Actual weight or the volumetric weight which of them is higher) and press enter.

Note: If you enter 400 gms it will automatically round off to 500 gms.

Now the shipping weight will also appear.

Amazon easy ship fee national local

Amazon easy ship fee national regional

Amazon easy ship fee national national

Total Seller Fees = Referral Fees + Fixed Closing Fees + Amazon Easy Ship Fees

GST rates equal to 18% is also applied to this total seller fees.

You can also calculate your profit by entering the cost price of the item in the next option given.

You can also calculate your profit by entering the cost price of the item in the next option given.

Watch the video will give you more clear picture

How to use Amazon Pricing Calculator

Youtube.com

So this is all for amazon seller fee next we learn how to ship products to customers.

Watch the video will give you more clear picture