Amazon Closing Fees for Sellers, What is it and How Much?

Amazon Closing Fees for Sellers

What is Amazon’s Closing Fees for Sellers?

Amazon’s closing fees, or variable closing fees, are charged to sellers for each unit sold in specific categories.

These categories include:

  • Books
  • DVDs
  • Music
  • Software & Computer
  • Video Games
  • Video Game Consoles
  • Video Game Accessories

The fee is a single, fixed rate applied per unit sold and is charged when a customer’s order is shipped.

The closing fees depend on the product category the item is sold under. To better understand these fees, let’s consider an example. If you are an Amazon seller who sells Video Games, you will be charged a closing fee for each Game you sell.

This fee comes in addition to other fees, such as referral fees, shipping costs, and monthly account subscription fees if you have a professional account.

To calculate your potential profit and make a successful business strategy, consider all the associated fees, including the closing fees. Remember that using Fulfillment by Amazon (FBA) can affect your profit margin, as FBA handling fees and weight-based fees can vary across different categories. However, many sellers find FBA an excellent solution for handling customer orders and shipping, as it saves time and resources.

Sometimes, selling items in other categories, such as Automotive, Industrial, or Gift Cards, might not be subject to closing fees. Nonetheless, it is crucial to remember that the fee structure may differ per category, so it’s important to examine Amazon’s fee guidelines on this topic thoroughly.

To maximize your profit, consider whether a professional account is correct for you, as it can help you save on per-item fees if you sell a high volume of products. Additionally, ensure you accurately categorize your items, which could affect the closing and other applicable fees.

Understanding Amazon’s closing fees will help you accurately calculate your costs and profit potential when selling items in specific categories. Keeping track of these fees, shipping costs, and other related expenses will allow you to manage your online business effectively.

How Much is the Amazon Closing Fee?

The Amazon Closing Fee is a specified amount charged per unit sold for specific product categories. For items in the Books, DVD, Music, Software and computer/Video Games, Video Game Consoles, and Video Game Accessories categories, the closing fee is $1.80 per unit.

It’s important to consider this cost when pricing your products, as it adds to your overall selling fees on Amazon. These fees are separate from other Amazon seller fees, such as referral fees, which typically range between 8% and 15% in most product categories. Since your product category dictates the referral fee percentage, checking Amazon’s Seller Fee Schedule for accurate information is essential.

On top of closing and referral fees, Amazon FBA (Fulfillment by Amazon) sellers also have to pay FBA fees that cover various costs like shipping, picking, packing, and delivery. FBA fees vary based on the size and weight of your product. To determine the FBA fees you’ll incur for your items, you can utilize a calculator for Amazon FBA.

If you opt for the Individual Amazon seller plan, you’ll pay $0.99 per unit sold instead of a flat monthly fee. However, if you choose the Professional plan, you’ll pay a fixed $39.99 monthly fee, regardless of the units sold.

The Amazon Closing Fee is $1.80 per unit for specific product categories. It’s crucial to factor in these and other Amazon seller fees, like referral and FBA fees, to set competitive pricing for your products while maintaining profitability. Remember that the exact prices and their structure may change over time, so it’s essential to stay informed about the latest updates and adjust your pricing strategies as needed.

Example of Closing Fees

When you sell a video game on Amazon, you’ll be charged a closing fee of $1.80. This closing fee includes other applicable fees, such as referral, fulfillment, and long-term storage fees.

If you sell three Video Games, you charged $1.8 * 3 = $5.4 as the Closing fee.

Understanding these fees is crucial for a successful selling experience on Amazon. Remember, knowing the fees helps you better plan your pricing and inventory management strategies.

Other Amazon Seller Fees

Fees for Sellers

As an Amazon seller, you must know multiple fees are levied on your account. Besides the closing fees, other fees that you must consider include referral fees, Fulfillment by Amazon (FBA) fees, storage fees, and refund administration fees

Referral fees vary by product category, ranging from 8% to 15%. For instance, if you sell shoes, you might pay a 15% referral fee, whereas musical instruments may have a 12% referral fee. A minimum referral fee applies to certain categories like automotive and cell phone devices, ensuring sellers pay a specific amount per item. You can use online calculators to understand referral fees per product category better.

FBA fees cover the packing, shipping, and handling of your products by Amazon. These costs depend on the item’s size, weight, and time of the year. Fulfillment fees include picking items, packing, shipping, customer service, and product returns. FBA fees for products like handbags, video games, and music can vary. Take time to familiarize yourself with fee details to avoid surprises.

Storage fees apply to sellers who use Amazon’s fulfillment centers to store their products. These fees depend on the volume of your items and the duration they remain in storage. Aged inventory surcharge storage fees could be applied for products in fulfillment centers for over 180 days. Such charges can add up, so monitoring your inventory levels closely is wise.

Lastly, if a customer refunds a purchased item, you might be charged a refund administration fee, a flat rate of $5.00 or 20% of the referral fee, depending on the product. Stay informed about this cost when handling refunds to avoid unintended financial consequences.

In summary, remaining mindful of Amazon seller fees, such as referral, FBA, storage, and refund administration fees, allows you to better plan for costs and maximize your profits.

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