Amazon FBA (Fulfilment by Amazon) is a method in which the sellers just have to register with Amazon and it takes care of everything from picking the product to storing and managing inventories, packing it and getting it shipped to the buyer. Basically, the easiest and fun way to start selling on Amazon.
There are moreover, two types of Amazon FBA seller accounts. Let’s take a moment to understand the difference between both.
Individual seller account: If you have just started with Amazon, it’s recommended that you go for individual seller account. Here Amazon charges a fee as low as a dollar for every product that you sell.
Professional seller account: It comes with a monthly subscription plan of 40 dollars. So, if you have an established business, or you are sure of selling more than 40 products a month, its advisable to choose Professional Seller account.
If you are still confused about which on to pick, you can always seek the guidance from Amazon account specialist like Hike Commerce. We are a team of experienced and professionals who provide complete consultancy for your account and even help you with your ecommerce product listing.
How much Amazon charge?
After you make a successful sale, Amazon obviously charges service fee like any other ecommerce platform. This is how it works:
Amazon takes a 15% referral fee on all sales for most categories.
- To use Amazon’s FBA program, you need to pay the amount to cover the storage, handling and shipping costs for your inventory. They are quite reasonable charges if you compare with what would it cost to manage everything on your own.
- Few items such as copies of books or video DVDs are liable for additional fee.
- Although there’s no subscription fee, but Amazon charges one dollar for every item you sell, if your account is that of Individual Seller.
- Amazon would charge a referral fee of 15% for almost all the categories.
- If you want to store your inventories in Amazon’s fulfilment centers for too long, you need to pay extra storage fee for your products.
