Table of Contents

Introduction

One of the most often used strategies for online product sales by e-commerce companies is still Amazon FBA (Fulfilment by Amazon). With Amazon’s vast logistical network and worldwide reach, Fulfilment by Amazon (FBA) enables merchants to concentrate on product sourcing and marketing, while Amazon takes care of storage, packing, and shipping. But before you get into the FBA model, one of the most important things to think about is the cost.Cost to sell on amazon fba fees including referral, fulfillment, storage, and variable closing costs.

In 2024, there will be a number of cost to sell on amazon fba that sellers must be aware of in order to stay profitable. We’ll break them down in this post and give you an idea of what to budget for this year as an FBA seller.

Amazon Seller Account Fees

Before you can start selling on Amazon, you need to choose between two types of seller accounts to get start and know about amazon seller fees 2024:

Individual Seller Account: This account has no monthly subscription cost to sell on amazon but charges a $0.99 fee per item sold. It’s suitable for sellers who expect to sell fewer than 40 items per month.
Professional Seller Account: This account costs $39.99 per month, regardless of the number of items sold. This option is more economical for those who plan to sell more than 40 items monthly and provides access to advanced selling tools.

Referral Fees

Amazon charges a referral fee on each item sold, which is essentially a commission for using amazon marketplace. The referral fee varies depending on the product category, normally ranging from 6% to 45%. However, most categories have a referral fee between 8% and 15%. For example:

Apparel & Accessories: 17%
Consumer Electronics: 8%
Beauty Products: 15%

This fee is calculated as a percentage of the total sales price, including shipping costs, so it’s important to factor this into your pricing strategy.

Fulfillment Fees

Fulfillment fees cover the cost of picking, packing, and shipping your products. In 2024, Amazon continues to adjust these fees based on factors such as the size and weight of the items. These fees are divided into two main categories:

Standard-Size Products: For example, an item weighing less than 1 lb might incur a fulfillment fee of $3.22, while heavier items could see fees up to $5 or more, depending on the exact weight and dimensions.
Oversize Products: Larger items have higher fulfillment fees. For instance, a large standard item weighing over 2 lbs could cost $9.39 to fulfill, while special oversize items could see fees upwards of $150.

Seasonal adjustments, especially during the holiday season, can also affect these fees, with higher charges typically implemented to manage the increased demand for most products.

Storage Fees

Storage fees are charged for keeping your products in the Amazon fulfillment centers. These fees are the cost to sell on amazon fba and are calculated based on the volume of your inventory (measured in cubic feet) and the time of year you store your product:

Standard Storage Fees: From January to September, the fees are around $0.87 per cubic foot. However, from October to December, when warehouse space is at a premium, fees increase to approximately $2.40 per cubic foot.
Long-Term Storage Fees: If your inventory remains in Amazon’s warehouse for more than 365 days, you’ll incur long-term storage fees. In 2024, these fees are $6.90 per cubic foot or $0.15 per unit, whichever is greater.

Managing inventory effectively is crucial to avoid excessive storage fees, particularly during peak seasons.

Other Potential Costs

Returns Processing Fee: If Amazon processes a return on your behalf, you may be charged a fee depending on the product category.
Removal and Disposal Fees: If you want Amazon to remove or dispose of unsold inventory, these services come with additional fees. For standard-size items, removal fees are typically around $0.52 per item, while disposal fees are slightly lower.
Unplanned Services Fee: If your inventory arrives at the fulfillment center without proper labeling or packaging, Amazon may charge a fee to prepare your items, ranging from $0.30 to $1.99 per unit depending on the service required.

Advertising Costs

The majority of cost to sell on amazon FBA sellers discover that advertising on Amazon’s platform is crucial to boosting traffic and sales, even if they do not pay a direct charge to Amazon. Sellers can place bids on keywords using Amazon PPC (Pay-Per-Click) advertising; the cost of this type of advertising varies greatly based on how competitive your niche is. Setting aside money for advertising is essential as it has a big effect on your bottom line.

Conclusion

In 2024, selling on Amazon FBA has the potential to be very successful, but success depends on knowing all of the expenses involved. These costs, which might include referral fees, fulfilment fees, storage fees, and monthly membership fees, can mount up rapidly. You must use careful planning, smart pricing, and inventory control to make sure that these expenses don’t reduce your profit margins. Through careful monitoring of these fees and efficient operations, you may make the most of Amazon’s platform to expand your company.

How much does it cost to sell on amazon FBA in 2024