The most popular market Amazon just announced the launch of a brand new Amazon fee structure, which will be in effect from January 18, 2022.
The rise in Fulfillment through Amazon (FBA) referral and fulfillment fees will partially offset the higher permanent operational costs the company will have to pay as it continues to accommodate its expanding workforce as well as fulfillment and sorting centers along with delivery stations as well as regional air hubs in all of the United States.
In a statement, Amazon said:
“Throughout the epidemic we’ve been working to assist you by putting off fees and keeping them low and reducing or eliminating certain fees , like those for customer returns and absorbing billions in additional expenses on your behalf and making substantial and needed investment in technology, people transportation, and infrastructure. As you’ve read in the media and likely observed yourself that costs are increasing and we’re forced to alter the fee structure for next year in the event of a response .”
In 2022, the Amazon fee increase is eight months following an Amazon FBA Seller Fee hike announced in June of the previous year. However, Amazon has stated that, despite changes to the existing FBA fulfillment fees, the 2022 Amazon fee structure will cost sellers 30 percent less when compared to filling their orders in-house.
What exactly are Amazon seller charges? What are the costs to be an Amazon FBA seller in 2022? Our Amazon marketing firm has the answer to all of these questions and more to assist you in understanding the new Amazon FBA fees for sellers. In addition, learn more about the modifications you can make to adapt to Amazon’s Fulfillment By Amazon fee changes and to remain competitive in the current competitive market.
What Are Amazon Seller Fees?
An Amazon fee is the cost associated with selling on Amazon. Sellers must enroll as part of Amazon Business Seller to be enrolled in the Amazon Business Seller program to know what monthly subscription fees and other Amazon fees for seller accounts apply to them.
You may be asking the differences between Amazon and other eCommerce payment options; what are Amazon seller fees? And what makes them different?
Other marketplaces such as eBay typically provide a fulfillment option to sellers who are the third party. You can choose to send orders by yourself or employ an outside fulfillment company to assist you. This way, sellers are usually only responsible for their product descriptions and post-sales.
Amazon, in contrast, provides a variety of fulfillment options, with the corresponding Amazon fees for seller accounts:
- Basic Amazon Plans
Based on the expected monthly sales, Amazon offers two plans you can choose from among Professional Selling Plan and the Individual Selling Plan.
A. Professional Selling Plan
This plan is designed for sellers who plan to sell 100 or more items each month. Sellers who are part of the Professional Selling Plan must pay Amazon seller account charges of $39.99 per month.
B. Individual Selling Plan
This plan is designed for small-scale retailers selling less than 40 products per month. Amazon doesn’t charge per-month individual sellers Amazon fees. However, sellers have to pay an $0.99 fee for every item sold.
2. Fulfillment through Amazon (FBA)
Amazon handles everything from packing and storing to shipping your goods through this plan. The Amazon FBA fulfillment fee covers the costs of storing picking packaging for shipping, in addition to providing customer service for the products sold, including getting rid of or disposing of inventory and processing returned items.
Amazon FBA fulfillment costs differ based on the size of the tier, beginning with $2.70 in units for items that are not apparel and $3 for apparel to store storage of inventory.
To decide whether FBA is right for the right person, Amazon has an Amazon seller fee calculation that can help assess the cost of fulfilling your orders by yourself vs. using Amazon’s services.
3. Referral Fees
For each product you sell via Amazon’s marketplace Amazon market, Amazon deducts an applicable referral fee. The values used to calculate your referral fees comprise the price of the product and delivery charges, as well as gift wrapping costs (if relevant) and the category of product. The typical referral fee is between 8 and 15 percent of your sales total.
4. Advertising Fees
Amazon provides advertising services in its marketplace. Based on your needs and goals, you can select between 1) Sponsored Products ads 2,) Sponsored Brands ads, and 3) Stores ads. Prices are the same for each of Amazon’s paid-per-click (PPC) advertising types, depending on the format you choose and location. Make sure you consult an Amazon marketing firm to determine the Amazon PPC campaign will best increase the visibility of your business and boost sales.
Amazon Seller Central fees vary depending on your sales plan, the fulfillment strategy, your selling plan, and even the product category. Make use of Amazon’s Amazon fee calculator for sellers to calculate the amount of your Amazon Central fees for selling. You can also generate an estimation of your sales margin.