Selling on Amazon has become a popular way for merchants to increase their online presence, reach new customers, and increase their sales. But is it free to sell on Amazon?
The short answer is no. There are fees associated with selling on Amazon, which can add up quickly if you’re not careful.
The most common fee that merchants have to pay is the Amazon Marketplace Fee. This fee is based on the total sales price of each item that you sell on Amazon and can range from 6% to 15%. In addition, there are also fees for shipping and handling, as well as monthly subscription fees for sellers who use the Fulfillment by Amazon (FBA) service.
Other costs associated with selling on Amazon include advertising fees, storage fees, returns fees, inventory management costs, and customer service costs. These fees vary depending on the type of product you are selling and your seller level (Basic or Professional).
Advertising Fees: Advertising fees are charged for sponsored product ads or sponsored brand ads that merchants run through Amazon Advertising. The cost per click varies depending on the product category and competition level for each ad campaign.
Storage Fees: Storage fees are charged for storing inventory in an Amazon fulfillment center. This fee is based on how much space your inventory takes up in an Amazon fulfillment center and can range from $0.50 to $2 per cubic foot per month.
Returns Fees: Returns fees are charged when a customer returns an item that they purchased from your store. This cost varies depending on the product category and number of items returned.
Inventory Management Costs: Inventory management costs include purchase order processing fees, pick-and-pack fees, kitting services, barcode labeling services and more. These services help streamline your warehouse operations and ensure accuracy when shipping orders.
Customer Service Costs: Customer service costs include providing customer support via email or phone calls as well as handling returns or refunds.
So while selling on Amazon may seem like a great way to make money online, it’s important to consider all of these associated costs before diving in head first.
Conclusion – Is Selling On Amazon Free?
No – there are various associated costs when selling products through the platform such as marketplace fee, storage fee etc., but with careful planning these costs can be managed efficiently.