Amazon May Have Just Saved You Big Time...
If you have been selling on Amazon for a decent length of time, then you probably are aware that Amazon charges long-term storage fees for Fulfillment By Amazon (FBA) inventory twice a year. If you didn’t know, here are the official terms per the Amazon website:
“On February 15 and August 15 of every year, FBA conducts an Inventory Cleanup, at which time inventory units that have been in Amazon fulfillment centers between six and 12 months are assessed a Long-Term Storage Fee of $11.25 per cubic foot. Units that have been in fulfillment centers for 12 months or more on the Inventory Cleanup date are assessed a Long-Term Storage Fee of $22.50 per cubic foot.
To provide additional flexibility to maintain your unique selection, one unit of each applicable product ASIN will be exempt from the semi-annual Long-Term Storage Fee. Please note, FBA accounts for inventory on a first-in, first-out (FIFO) basis when calculating the Long-Term Storage Fee. In practice, physical units are shipped to fill customer orders to optimize for cost and speed of delivery, not on a FIFO basis.”
You can read the entire FBA Long-term storage guidelines here: Amazon Long-Term Storage Guidelines
While FBA has numerous advantages, long-term storage fees are obviously not one of them and can impact your business if you are not careful. Sellers who like to hold slower moving inventory or private label sellers are especially vulnerable to long-term storage fees.
Well, on March 31, 2016, Amazon sent out an email to Amazon Sellers saying the following:
What's BYOB? Think. Lots. Of. BOLOs....
Register HERE to find out more about BYOB and the amazing community of product-sharing Amazon sellers
What does this mean for you?
If you do not have any inventory that will incur long-term storage fees on August 15, then likely nothing! However, if you have a private label line that has not been moving quickly.. Amazon may have just saved you a lot of money.
Most items cost $.50 to be returned to you by Amazon. If you have a couple hundred units that you need to return to you before long-term storage fees hit.. you may save yourself quite a bit of money getting them returned in April!
Who wins big with this promotion?
If you paid long-term storage fees on February 15, 2016 for items that you still have in the warehouse, you can now have those units removed and receive a 66% reimbursement. This may not seem like much to you..but some sellers literally paid $1,000's of dollars in long-term storage fees back in February. This may save them a pretty penny.
Don't like to read? Catch a quick video on long-term storage fees:
What to do going forward
Going forward, make sure that you are always keeping a close eye on your inventory turnover. Amazon has made it pretty easy to see which items are going to incur long-term storage fees in Seller Central by going to:
> Reports > Fulfillment > Inventory Health Report
Inventory management is an important part of running an Amazon FBA business and we recommend that you watch the show we did on this topic when you have a few minutes: Managing Amazon Inventory
10 Tips for Amazon Success
1. Get Started
Tip one is an obvious and simple one, but if you never get started, you will not have much success! We have a lot of people among us who haven’t gotten started yet and are looking to. Andy and I are working on some material for that and will make sure to get information to anyone who needs it to help with that. So tip one is more those who haven’t jumped in yet but are seeing the possibilities and the rest of us who are having a lot of fun with this. If you haven’t yet, complete the following form: http://goo.gl/forms/cz0Xrd8FB7
2. Look back at 2015
Analyze your profit margins and see what you really did well. I have been looking over reports and accounting information, and came across some items that I sold early 2015 and sort of just forgot about. I realized that they were some of my highest ROI items of the year and that I still have access to them, as they seem to get discounted this time of the year. I just made a large purchase of these items again and will do a better job tracking them this time. Look at all your highest ROI/Profit Margin items for 2015. See if you are still selling these/if you may be able to. You can also analyze your losers and try to avoid similar busy this year.
3. Get 2015 off your mind
Although you want to review and see how you can improve, you don’t want to be stuck in last year. One of the things that bogs me down this time of the year is taxes! Meet with a professional to handle your 2015 taxes, run the reports that you need, get 2015 taken care of and out of the way.
4. Set goals for 2016
I already mentioned this in a previous video, so I will not go over it too much again. But I really think it is important that everyone set some goals for this year, write them down, and read them over once a month, or whatever might help. Again, studies show those who write down and review their goals achieve them much more often. I am sticking my goals right above my desk and going to leave them up all year so everyday I have a reminder of why I am working and what I need to do. Check out this SlamazonBros Challenge!
5. Create processes systems that will make your business more efficient.
This is likely going to be an entire show soon, but I just wanted to briefly hit on it. Put together systems that will improve your business:
- Have a system to organize your tasks that need to be completed
- Have a system to see if you are receiving all of your inventory – can be hard to keep track of all your retail and online purchases
- Have a system to evaluate your inventory regularly and make sure you are maximizing sales.
- If you are scaling your business, now is as good a time as any for the year to look for/train someone to list/process inventory. Make sure you choose the right people though – having employees/partners that you don’t work well with can be very damaging to your company.
- Evaluate if renting a workspace would be beneficial. You have the cost of the warehouse, but if it increases efficiency, productivity, opportunities it may be worth it. This is highly dependent on storage/warehouse rates near where you live.
6. Diversify your sourcing strategy
Consider using thrift stores, retail arbitrage, online arbitrage, wholesale and private label methods to find inventory.
7. Take advantage of seasonal buys
- Just like we try to take advantage of Q4, think of each holiday as a mini Q4 that you can use to boost sales. Valentine’s Day and Easter are two big holidays that will be coming up soon.
8. Improve your Selling behavior
- It is more important than ever to be a smart Amazon seller
- We recommend learning how to bundle, multi-pack, and create listings.
- Make data-drive decisions. Don’t make your decisions based on feelings, and emotions. Base your decisions on data (profit margin, ROI, sales rank).
- This will not only make you a better buyer and seller, it will help keep you from experiencing the ups and downs of owning a business.
9. Join with like-minded sellers to form a mastermind
- Masterminds share experience, tips, great product finds and knowledge with each other to create a sum that is greater than the individuals.
- There are masterminds that did amazing in 2015 and never would have been able to find the product opportunities that they did without their shared knowledge.
- Again, finding the right people can be challenge. If the mastermind does not work well together (is selfish, or even malicious) it could do more harm than good.
10. Cut the “2% Corner”
- One of the SlamazonBros members, a super smart sellers, Steve Sawyer, told us a couple weeks ago about cutting the 2% corner.
- This is the pile of things that you collect over the course of processing FBA, returns, randomly purchased items, damaged items, failed bundle designs.
- Steve says that if you let this pile grow, it will suck the life, money and energy from you!
- Donate, use it or throw it away so that you can free up your time and energy and not have to worry about it.
Did you find this article helpful?
There are many numbers involved with selling on Amazon FBA that you should be aware of. In the SlamazonBros week 5 video we touched on 6 sets of numbers/information that we felt were important to understand in almost any business.
1. FBA Fees
In order to be a successful Amazon seller, it is important for you to understand your profit. Amazon FBA is a great tool and opportunity. It allows sellers at all different levels to sell at a volume and exposure rate that is unbelievable.
However, Amazon doesn’t allow us to use FBA for free, unfortunately. There are fees involved with Amazon FBA that can really change the outcome of your selling, which is why it is important to know your margins and understand the fees involved.
Check out the following article for a better understanding on the fees involved with selling on Amazon: Understanding Amazon Fees. There is also a video that goes through the Amazon Revenue Calculator and Amazon Seller App and how you can use them to see estimated fees for a product.
Understanding your profit margin is important. Why? Because we are trying to make money! Your profit margin helps you determine how profitable your business is based upon your sales, cost of goods, and expenses.
- Gross profit margin = (Revenue – Cost of Goods Sold) / Revenue .
- Net Profit Margin: includes your expenses and costs. (Revenue – COGS –expenses) / Revenue.
- Keep track of your business expenses. This is really important. Neither Andy or I are accountants and are not going to give advice on what is deductible, but it is essential to your business to be considering those business costs.
- Computers, printers, ink, supplies, phones, mileage, etc. You should keep track of the numbers/costs involved with these expenses and more regularly.
- Not only are these important to track for business deductions, but they are important to track when considering your net margins. You can easily think you are receiving more profit for items than you really are if you are not considering all the costs involved.
- Cut costs when you can. This can be difficult when first starting Amazon FBA, because there really are some tools and resources that will help boost your business. Like all businesses, you should be trying to make smarter buying decisions and taking cost cutting measures when possible.
- Keeping track of your inventory can be a challenge, especially for those who go very wide in their products utilizing retail arbitrage/online arbitrage.
- It is important to have a good understanding of your inventory, what type of profit margins you are receiving, and what prices are doing in the Amazon marketplace.
- I have been guilty of not keeping up with my inventory well enough at times. Occasionally, I will come across an item in my inventory that I will not remember even purchasing! When this happens, it may be an idication that you have held the product too long or that you haven’t been monitoring your inventory well enough.
- Don’t get too emotionally attached to your inventory. Make smart decisions based upon the numbers. (Some sellers can rely on sales instinct when making inventory decisions if they are familiar with a product and the marketplace).
5. Winners & Losers
- Remember the 80-20, or even the 90-10 rule. The 80-20 rule assumes that 80% of your sales/profit will come from 20% of your products. This is different for everyone, but the point is that you clearly will have some products that perform better than others.
- It is important to focus on the profitable parts of your business. If you have a particular category on Amazon that you do much better in, make sure that you are maximizing your competitive advantage in that area.
- You should always know which items are performing well for you and look to keep these items in stock. This sounds simple, but it is easy to go out of stock on some items, even if you have regular access to them. This can happen on replenishable items, private label items, wholesale items, etc.
- Look for new high margin areas. If you have tapped many of the winners in a category, expand into a new category and look for some of the winners where you are already sourcing.
- Are you focusing too much time on the losers? I had some Replens last year where the margins kept eroding until I finally had to tell myself that it wasn’t worth selling anymore. Sometimes it is hard to let go of a product that has performed well in the past, but if your are spending resources on a product that could be better used on something else, it may be time to cut that product from your purchase list.
- Time is an important number as well.
- This doesn’t mean you have to track your time on everything you do (although some do), but it is important to remember that time is a valuable resource.
- If you are spending hours and hours on something, even if it is making you money, would your time be better spent doing something else?
- Increase your time efficiency through helpful groups, like SlamazonBros, using tips provided, and other services that can improve your business.
Did you find this article helpful?
Amazon is having record level sales this season and hopefully you are getting a piece of it! If you are selling Amazon FBA and have items at the warehouse, you may be noticing that quite a few of your items are in reserved status. When I first started selling Amazon FBA, reserved inventory was always a good sign because it meant that items were selling. However, there are actually 2 main reasons your inventory may be in reserved:
1. Reserved Customer Orders
2. Reserved Fulfillment Transfers
The following is taken from the Amazon website here:
Why does one of my reserved items remain in the reserved inventory? How long will my units be in reserved inventory?
"Items are in reserved status because they are either tied to a customer order or being shipped between fulfillment centers. Items shipped between fulfillment centers can take up to seven days to be received. We do this so the products are optimally placed to serve customers. Items in customer orders can take extended periods of time to process for a few different reasons:
- Sometimes buyers purchase in-stock items along with advanced-sale items. When this occurs, the in-stock items might not ship until all the items in their order are ready for shipment. This item will be shipped out once the advanced sale item is in stock and ready to ship.
- Sometimes ”Free Shipping” orders can take up to five days to be picked and packed. All items in the order will remain reserved until they are all ready for shipment.
- Sometimes the buyer’s payment is pending. This can take up to a week."
How to Check
Yes, unfortunately, those reserved inventory numbers can mean that your inventory is being transferred between fulfillment centers. This is happening very often right now and some sellers have hundreds/thousands of items that are being transferred between centers.
One way to see your reserved inventory is in the Manage Inventory section on Seller Central. If you don't have it enabled, you can set you preferences to include the reserved column.
When you edit your preferences, check the "Reserved" box (if not already) to quickly see how many reserved units you have for each SKU.
However, as mentioned above, there is more than one reason why your inventory could be showing up as reserved. So, how do you tell which ones are reserved because they have been ordered and which ones are being transferred/processed? After setting up your preferences to include the reserved column, click the drop-down arrow next to the number of reserved items for a breakdown.
To see the breakdown for all of your reserved inventory at once, follow these steps:
Step 1. Log into your Seller Central account here.
Step 2. Navigate to the Reports Tab at the top of the page > Fulfillment
Step 3. In the left-hand column, select the "Reserved Inventory" report.
Step 4: Hit "Request Download" button:
Step 5: Wait for the report to process and then hit "Download"
Step 6: I recommend opening the report in Excel if you can. The report shows the following columns:
The reserved qty column shows you the total amount of each ASIN that is currently reserved. After that, the report breaks down the reserved status by customer orders, fulfillment center transfers, and fulfillment center processing.
The fulfillment transfers and processing can be very frustrating. When Amazon gets backed up, especially during the fourth quarter, they can take extra long to transfer the inventory and process things.
Want to know how to get FREE UPS labels? Read how here!
Did you find this article helpful?
Amazon FBA Shipping Tip
When first getting into Amazon FBA, it can be difficult to navigate the various shipping options. One part of the shipping process that can get frustrating is having your items split up to many fulfillment centers. One way to avoid having your items split into multiple boxes/go to various Amazon warehouses is to use the FBA inventory placement system. You can read about the inventory placement system in detail here ( FBA Inventory Placement). One of the troubles with the FBA Inventory Placement system is that the fees can really add up. You can read about the current fees and the 2016 fees here. If you decide inventory placement is right for you, great! Just know that it can sometimes take longer for your inventory to get checked in as Amazon may transfer it to a different warehouse. Also, make sure to factor in the fees of the placement service when calculating estimated profit.
Now, if you have a variety of different products (or SKUs), and only a 1 or 2 of each SKU, then you are most likely going to stick with the “Individual products” packing type. This means that you can combine different SKUs into the same box, depending on where Amazon says they are going to be shipped.
However, if you have a larger number of each SKU, let’s say 10 Lego sets and 10 Frozen Elsa dolls, you may want to have each of these products go into a box by themselves. If using the Individual products packing type, Amazon may tell you to send 5 of the Lego sets to one FBA warehouse and 5 to another FBA warehouse. Once they do that, you can no longer package all 10 of these dolls into the same box!
In order to make sure that all 10 of your Lego sets will go into one box and all 10 Frozen Elsa dolls will go into one box, you want to use the case-packed products setting when using the Seller Central platform for shipping. The case-packed shipping setting is designed to allow you to send multiple units of each SKU in as many boxes/cartons as you designate. The following Amazon-made video explains how the case-packed setting is supposed to work:
Help – I need more help with my first case-packed shipment.
The following video walks through using the case-packed shipping feature for Amazon FBA.
Need FREE UPS Labels? Visit the last article here!
Did you find this article helpful?
Free UPS Labels
Yes – free! I have had many sellers ask what labels to use when printing Amazon shipping labels. I’ve also known sellers who purchase labels from Amazon, Staples, etc. Thankfully, that is not needed because you can get plenty of free labels from UPS! These are the peel-and-stick labels that can be used with any standard laser printer. The following is some quick steps for how to get these labels.
Step 1: Sign up for a UPS account (if not already)
Go to UPS.com and hit the register now button. Go through the steps needed to sign up for an account. UPS requires you to create a user ID, as well as enter in a physical address that is actually registered to you. They generally will ask you some questions to verify that the address is registered to you.
Step 2: Go to shipping > Order Supplies > Labels and Stickers
Find the labels that are named “UPS WorldShip Peel-and-Stick Labels – (2 per Sheet)”. Check the box that says update order supplies order and then click “add selected to your order” at the bottom. You will then need to scroll back to the top of the page and click the link to “View your Supplies Order”. UPS only gives you the option to order 50 sheets of these labels per month.
Step 3: Order once a month!
UPS allows you to order these 50 sheets once a month.
*Note – these labels are intended to be shipped via UPS only. If using them for non-UPS shipping you should cut off the UPS symbol.
Need more than 50 sheets a month from UPS?
Good news! If you want more than the 50 sheets that you can order each month through the supplies section, you can contact UPS and ask them to send you a box. Send them an email here.
You can email UPS and say something like this:
To whom it concerns:
We use many of the UPS WorldShip Peel-and-Stick Labels – (2 per Sheet) labels and would like to have a full box of them sent to our address. The item number for these labels is 01774501. Thank you for your support!
(UPS may ask for some additional information. The number of labels that they send to you may vary as well – last time I received 800).
Did you find this article helpful?
When to Hold and When to Sell
When to lower, hold or raise your prices on Amazon – in the video above, Andy Slamans discusses some of the factors that should influence your decision to hold or sell your products.
Andy recommends asking yourself the following questions when considering to hold or sell your Amazon inventory:
1. How many units do you have in stock.
Sometimes Andy will sell through half of his inventory at a lower price point and then increase his price to capture a higher return for the second half. This depends on your cash flow situation.
2. Has Amazon been in on the product?
When you look at the Keepa Chart does Amazon come in and out of stock on a regular basis?
3. Is it a name brand Evergreen product?
“Evergreen” products are those products that hold their value for a long time and generally recover in price.
4. What is the Historical sales rank and average selling price of the product?
Is the price trending upward or downward? Check out Jungle scout to get a idea how many sell each month. How many reviews does the product have? Pay attention to recent reviews. How many sellers are on the product? You can add 999 to your cart to find out how many units each seller has.
5. What are the prices of other similar products selling for on Amazon?
Know the Amazon catalog. Spend time researching like you are a customer.
6. Is it a seasonal item?
It may sell well only at Christmas and Fathers day. You do not want to pay long term storage fees so if you want to move all your inventory within a 6 month time frame.
These points are discussed in more detail during the video.
Did you find this article helpful?
10 Tips for Growing Your Amazon Business
Given by Andy Slamans
Andy Slamans has been able to scale his Amazon business so that he is now averaging $75,000+ a month in sales. How has he been able to achieve this success? Below is a summary of the SlamazonBros Live Week 2 video shown above:
Tip #1 - Do your due diligence. Jump in once you believe.
Andy explains how he took the time to read books and talk with experts before jumping into Amazon FBA. He also started of slow and then grew faster once he felt more comfortable. This doesn't mean that you have to take weeks or months before listing your first product on Amazon, but it does mean that you should look at some starting guides that will help eliminate mistakes. Check out the following SlamazonBros posts for some helpful information: Smart Amazon Buying & Understanding Amazon Fees.
Tip #2 - Start slow and grow at the pace that is comfortable for you.
Many sellers want to jump on Amazon and start selling $75,000 a month or more like Andy. While some people are able to scale very quickly, most people do not have sufficient time, resources, or knowledge to get their business going that quickly. Andy recommends that you simply start your Amazon journey by selling some products around your home. Once you are able to get a feel listing items on Amazon, it is a little easier to source items at garage sales, thrift stores, retail stores, wholesale companies, and even private label your own brand eventually.
Tip #3 - When starting out, look for low cost sourcing methods - thrifting, books, clearance sections, etc. Look for high margins.
Most people's biggest fear selling on Amazon is that they are going to lose their initial investment. As mentioned above, Andy suggest looking for items at home, thrift stores, books, clearance sections and other low-cost sources when first starting out. In fact, some people continue to use these low-cost sourcing methods as their primary business model and make great money at it! Many times these types of sourcing methods will allow you to find products that are not very expensive and have a good return on your investment. This helps to eliminate some of the fear of losing a significant amount of money while you get used to how selling on Amazon works.
Tip #4 - Use the Facebook groups that are available. Join us at the SlamazonBros Facebook group! Invest in a quality course that teaches what you want to learn.
There is an abundant amount of information available on Facebook for selling on Amazon. Many of the group leaders have been selling on Amazon for years and can help you to avoid some of the pitfalls that they experienced early on. Join Andy and I in the SlamazonBros Facebook group as we interact with Amazon sellers on a daily basis!
Tip #5 - You will need some starting resources. Don't expect to draw on your profits right away. (If going full time)
There are some initial costs to selling on Amazon. For one, you need some way to obtain the products you are going to sell (unless you stick with just selling items from your home). You will also need to purchase some supplies if you do not already have them - a computer, printer, tape, boxes, scale etc. When just starting out, you can typically get away with having a limited amount of supplies.
What is often needed to scale your business quickly? Money. New sellers receive bi-weekly pay-outs from their Amazons sales, meaning that you may have to wait a couple of weeks before you are able to reinvest your profit from that great item you sold. Again, one way to work with limited capital is to look for low-cost items that have high margins. Another popular strategy for growing your resources is to look for items that sell very quickly on Amazon so that you can compound your money. If you are able to double your money on a product every 2 weeks, you will start really see some significant growth. Again, check out the Smart Amazon Buying article to determine if an item may sell quickly.
If you are looking to go full-time with Amazon, Andy recommends that you first build up a reserve. He reinvested his Amazon profits for over a year before drawing out any money. You don't necessarily have to wait that long, but you should get things rolling before looking to live on your bi-weekly payouts.
Tip #6 - Keep an eye on your numbers. Watch how many services you are subscribed to. Help your bottom line.
There are a ton of great courses, services and paid groups available that can really help boost your Amazon business. One of the dangers of all these great opportunities is that they can get out of hand if you are not careful. Andy recommends reviewing your subscriptions regularly and really determine the ones that are still providing value and helping your bottom line.
Tip #7 - You have to take risks on inventory. Recommend not going into debt when starting out.
All the research and information in the world can not prepare you for every single buying decision. While it is definitely important to understand the factors that determine a good buying decision, sometimes you still have to take some risk. It may be tempting to load up the credit card when first starting out in order to bypass the capital barrier to entry; however, Andy recommends that you really get a feel for things before going into debt.
Tip #8 - Always be buying inventory. It is a constant replenishment of items!
One of the tricks to having consistent sales numbers on Amazon is that you have to constantly be purchasing inventory. Even if you are limited by the amount of money you have to spend on items, you should constantly be thinking/researching what your next purchase is going to be. Always keep your eye out for what your next potential buy is going to be.
Tip #9 - Know the Amazon catalog. Analyze and know Amazon's website.
It is much harder to sell on Amazon if you know nothing about Amazon! Use tools like Keepa to help simplify Amazon listing pages. Always research your potential buys on Amazon to see how many other sellers there are, what the average price and sales rank has been, and any other relevant factors.
Tip#10 - Know how to make your own unique listings. PL, bundles, etc.
Selling on existing Amazon listings is a great way to start out. However, you may want to sell something that has never been listed on Amazon! Learning how to make your own listings on Amazon is essential for getting into private label and making great bundles. The following are some tips by Amazon when first creating a listing: Creating a listing. More information for creating listings will be available on SlamazonBros.
Andy is a successful Amazon seller that has put in the blood, sweat and tears to grow his Amazon business. Use the information that he so generously provides to grow your Amazon business the right way!
Did you find this article helpful?
If you are selling on Amazon then you better be aware of the fees that are involved. Nothing can kill the perceived profitability of an item quite so fast as miscalculating the fees (or not considering them at all!). There are enough tools and information out there to pretty accurately estimate the fees that you are going to incur when selling an item. Let’s look at a few of them.
Fulfillment by Amazon Revenue Calculator
The Fulfillment by Amazon Revenue Calculator is a great tool to use at home when researching a product. The results are most likely just going to be an estimate, but you can very accurately determine the costs of selling the item as long as you estimate shipping correctly. Although this is called the FBA Revenue calculator, you can also use it to determine fees for seller-fulfilled items.
The Amazon Seller App
The amazon seller app is very useful in determining whether an item is worth your purchase. Scan or search for an item and you can view the different fees. The app can show you fees for both seller-fulfilled items and fulfilled by Amazon (FBA) items.
To change the shipping rates in the Amazon Seller app, go to settings> Product Search> and then set the cost by weight for both seller-fulfilled and FBA selling.
See below for more details on Amazon fees
Fees and Pricing
If you have never looked at Amazon’s fee tables, it is a good idea to go ahead and do that here. Many people are not making as much money on Amazon as they think they are, even when they are selling the product for more than they purchased it for. Amazon explains the deposit that you receive in your Seller Central account after a purchase as follows:
+ Shipping charges paid by the buyer
+ Gift wrap charges paid by the buyer
– Referral fee (calculated on the item price and any gift wrap charges paid by the buyer)
– Variable closing fee
– $0.99 per item fee (waived for sellers who pay a subscription fee)
= Total deposited to seller account
Each category has a referral fee that is deducted from the sales price.
These are just a few of the many categories – again, you can see the full list here. As you can see, 15% is the most common referral fee. Meaning that when you sell a toy, for every dollar Amazon takes $.15 as a referral fee.
Variable Closing Fee
The variable fees are based on the weight of an item. The heavier your item, the more the variable cost is going to be.
Other products (per item plus per weight):
|Product Type||Domestic Standard||Domestic Expedited||International|
|Non-media products||$0.45 + $0.05/lb.||$0.65 + $0.10/lb.||Not available|
$0.99 per item fee (waived for sellers who pay a subscription fee)
If you are registered as an individual seller, than you will pay an additional $.99 per item sold. If you are registered as a professional seller on Amazon, then that fee is waived. Instead, you pay a $39.99 monthly subscription fee that is deducted right from your Amazon seller account. You can read about the differences here: Individual Vs. Professional Plan
The above fees are specifically for merchant-fulfilled items (items sold from your house). If using FBA, there are additional fees to consider.
Fees for orders placed on Amazon.com apply to domestic and international orders. These fees are shown here for standard items:
|Fulfillment Fee||Product Size Tier learn more
($299.99 or less)
($300 or more)
|Small Standard-Size||Large Standard-Size|
|Order Handling per order||$1.00||$1.00||$0.00|
|Pick & Pack per Unit||$1.04*||$1.04*||$0.00|
|Weight Handling per lb.
Based on the Outbound Shipping Weight
|Over 2 lb.||$1.59 + $0.39/lb. above the first 2 lb.|
Order handling fees – this is a flat rate fee.
Pick & Pack fees – a flat fee per item
Weight Handling – This is the one where the fees can really add up and is based on the items weight.
Note the above table is only for standard sized items. It does not take too large of an item for it to be considered “oversize”. You can view the product size requirements here: Amazon Product Tier Information.