There are a number of factors that can affect your Amazon selling costs. Let’s take a look at some of the most prominent ones:
The item you’re selling. The products you sell on amazon will have different costs associated with them, based on factors like their size, weight, and complexity. If you sell heavier items like furniture or large appliances, you might have higher shipping costs than if you sell smaller items like t-shirts and cell phone cases.
The kind of seller account you have. There are four types of seller accounts on Amazon: Individual, Professional, Premium Seller, and Vendor Central. Each type has its own set of fees, but they also come with different benefits. For example, an individual seller can use FBA (Fulfillment by Amazon) for free whereas a professional seller must pay for this service in addition to higher fulfillment fees and fees for other services such as advertising on third-party websites.
The category your product falls into. Each category has its own rules that may affect the price you pay for inventory storage and shipping. For example, Electronics & Computers products require product quality assurance testing which means there is an additional charge for sellers who sell electronics items on Amazon
The size of the product. You can sell large items like cars or motorcycles on Amazon Marketplace, but you’ll pay more in fees than you would for an item like an ebook or smartphone case. Generally speaking, bigger items cost more to ship and have a longer time to get to customers when they’re sold.
How you’re shipping it. You can ship large items by truck or plane (which will cost more than small parcels), but if you don’t have room in your garage or driveway for these items, then you’ll have to find somewhere else to store them before selling them online (and this might involve paying rent).
Your FBA fees. If you use Fulfilled By Amazon (FBA), then there are extra fees for storing your products in one of Amazon’s warehouses and making them available for shipping directly from there. This service is especially useful for sellers who want to take advantage of Amazon’s huge customer base and offer fast shipping times at competitive prices.
What Affects is Your Amazon Selling Costs?
Selling on Amazon is a great option for anyone trying to grow their business. It provides a huge platform on which to sell your products and services to customers around the world. It also offers a lot of benefits, such as access to millions of potential customers, automatic shipping and fulfillment, and more. However, there are a few things that can affect how much you pay for this service.
Amazon Prime Membership
Amazon Prime membership is probably the most obvious way that Amazon sellers can reduce their costs per unit. With an annual subscription fee of $119, Prime members receive unlimited two-day shipping on all orders, plus access to other perks such as Prime TV shows and movies, music streaming, free ebook borrows with Kindle Unlimited, Twitch channel subscriptions, and more. As an added bonus for sellers who ship their items through Fulfillment by Amazon (FBA), there are no storage fees for Prime subscribers. So if you’re selling through FBA, your storage fees will be $0 for the year if your order volume meets certain thresholds. That’s a savings of $3 per item per month!