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January 22, 2020

How Much Does It Cost To Sell On Amazon?

 

How Much Does Amazon Charge Sellers?

If you’re considering selling on Amazon then it is important that you’re aware of how much it could cost you to list your products on their platform. Normally, working out the potential costs of selling on a new platform can be a real headache. That’s why we’ve broken it down as best as we can.

Shop owner calculating price

The Different Types Of Amazon Accounts

The first thing to take into consideration when you plan on selling on Amazon is the type of account you would like. Amazon offer both a Basic Seller Account & A Professional Seller Account.

The Basic Seller Account

The Amazon Basic Seller Account is designed for those who plan on only selling fewer than 35 items per month. Sellers with the Basic Seller Account pay no monthly subscription fee but do pay 75p per item sold + additional charges

The Professional Seller Account

The Amazon Professional Seller Account is ideal for those who plan on selling over 35 items per month. Sellers with the Professional Seller Account pay a monthly subscription fee of £25 (Excluding VAT) but do not pay the 75p per item sold. (They do however still pay the additional charges on each sale.)

Referral Fees

Amazon Sellers pay a Referral Fee on each product sold. Amazon deducts the applicable referral fee percentage calculated on the total sales price. The total sales price is the total amount paid by the buyer, including the item price and any delivery or gift wrapping charges. Referral rates vary by category.

 

Categories Referral Fee Per-Item Minimum Referral Fee
Additive Manufacturing 12% £0.25
Amazon Device Accessories 45% £0.25
Baby Products (excluding Baby Clothing)
  •  8% for products with a total sales price up to £10.00
  • 15% for products with a total sales price greater than £10.00
£0.25
Beauty
  • 8% for products with a total sales price up to £10.00
  • 15% for products with a total sales price greater than £10.00
£0.25
Beer, Wine & Spirits 10% N/A
Books, Music, VHS, DVD 15%* N/A
Business, Industrial & Scientific Supplies 15% £0.25
Car & Motorbike 15% £0.25
Computers 7% £0.25
Computer Accessories 12% £0.25
Consumer Electronics 7% £0.25
DIY & Tools 12% £0.25
Education Supplies 15% £0.25
Electronic Accessories 12% £0.25
Flow Control & Filtration 12% £0.25
Fluid Transfer 12% £0.25
Food Service 15% £0.25
Furniture
  • 15% for the portion of the total sales price up to £175.00
  • ·10% for any portion of the total sales price greater than £175.00 (excluding mattresses, which will be charged 15% on total sales price)
£0.25
Grocery & Gourmet ·
8% for products with a total sales price up to £10.00·         15% for products with a total sales price greater than £10.00
N/A
Health & Personal Care*** 8% for products with a total sales price up to £10.00

15% for products with a total sales price greater than £10.00

 

£0.25
Home and Kitchen 15% £0.25
Industrial Electrical Supplies 12% £0.25
Industrial Tools & Instruments 12% £0.25
Jewellery
  • 20% for the portion of the total sales price up to £225.00
  • 5% for any portion of the total sales price greater than £225.00
£0.25
Large Appliances (with the exception of Accessories, Microwaves and Range Hoods) 7% £0.25
Material Handling 12% £0.25
Metalworking 12% £0.25
Musical Instruments & DJ 12% £0.25
Personal Care Appliances*** 15% £0.25
Renewable Energy Supplies 12% £0.25
Software 15% £0.25
Sports & Outdoors 15% £0.25
Video Games – Consoles 8% N/A
Video Games – Games & Accessories 15%* N/A
Watches
  • 15% for the portion of the total sales price up to £225.00
  • 5% for any portion of the total sales price greater than £225.00
£0.25
Handmade 12%** £0.25
Everything else 15% £0.25

* Beginning August 1, 2017, Referral Fees for media products are calculated on the total sales price of a product, rather than the item price.

** For sellers on Amazon Handmade, the reduction of the referral fee from 15% to 12% applies until December 31, 2021.

**From 22 March 2018 until 20 June 2018, Referral Fees for eligible items within Home will be reduced to 6%.

*** For more details on the different types of categories/products within Health & Personal Care and Personal Care Appliances please check this link.

**** Effective since July 22, 2019.

Amazon Closing Fees

If you sell media on Amazon you will have to pay a closing fee for each sale. Products that are Books, Music, DVDS, Videos, Video Games and Software may be classed as medias.

Business man counting money

High Volume Listing Fees

From February 1, 2015, Amazon calculate the monthly High-Volume Listing Fee based on the number of active non-media SKUs you offer for sale on Amazon.

The High-Volume Listing Fee will only apply if you exceed 2 million SKUs in a given month, and it will be applied to your highest number of SKUs above 2 million at any time during that month. For each active non-media SKU over 2 million, a fee of £0.0003 per SKU will apply.

Refund Administration Fee

If you refund a customer for an order that you have already received payment for then Amazon will refund you the amount of the referral fee you paid for the sale, minus the applicable Refund Administration Fee, which either £5.00 or 20% of the applicable referral fee.

 

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