How Do I Avoid Amazon Referral Fee?

When selling products on Amazon, sellers are subject to a referral fee, also known as a closing fee. This fee is a percentage of the total sale price and is charged to the seller when an item is sold. The amount of the referral fee depends on the category of item sold and can range from 6% to 45%.

There are some ways for sellers to avoid paying referral fees when selling on Amazon. One way is by using Amazon Fulfillment Service (FBA). With FBA, you ship your products directly to an Amazon fulfillment center and they handle all aspects of order fulfillment including customer service and returns.

By using FBA, you are exempt from paying referral fees as long as your items are shipped through Amazon’s fulfillment centers. This is a good option for sellers who want to reduce their overhead costs.

Another option for avoiding referral fees on Amazon is by opting out of their Marketplace program. Marketplace allows third-party sellers to list their products alongside those sold by Amazon itself. While this program has some advantages, it also means that you must pay referral fees when items sell. To opt out of Marketplace, simply check the appropriate box in your seller account settings.

Finally, some sellers choose to avoid referral fees completely by selling through other online marketplaces or their own website or blog. This approach can be more expensive in terms of setting up the site or blog and marketing it but it also eliminates the need for paying any referral fees.

Conclusion:

By using either FBA services or opting out of Marketplace, sellers can avoid paying Amazon’s referral fees when selling products on its platform. Additionally, setting up your own website or blog and selling directly through it is another option that allows you to circumvent these fees entirely.