What Affects is Your Amazon Selling Costs

The prices you’ll be paying to sell on Amazon depend on various factors. These will include:

Monthly Subscription Fees

Amazon has monthly subscription fees for users depending on the size of its business

FBA Fees

If you’re selling via Amazon FBA, the prices you pay will all depend on your order type. For example, the larger your order is, the more you’ll have to pay Amazon to fulfill it.

Since FBA allows you to let Amazon’s warehouses manage your orders themselves, there’s also a monthly storage fee that you’ll have to pay. You’ll be paying $0.69 per cubic foot from January to September and $2.40 per cubic foot from October to December.

Keep in mind that if your product stays in the FBA warehouse for longer than one year, you’ll have to cover additional charges.

FBM Fees

Unlike FBA, sellers on Amazon’s Fulfilled by Merchant (FBM) program are responsible for fulfilling their own products. One of its main advantages compared to FBA comes in the form of reduced fees.

With FBM, Amazon sellers on the Professional selling plan get to pick their own shipping rates. There is also the benefit of not worrying about paying any warehouse or storage fees.

Referral Fees

Each time you sell products on Amazon, you have to pay a referral fee between 6% to 20%. The referral fee all depends on the type of product you’re selling within your Amazon store.

Customer Returns Fees

It’s pretty common for a customer to order one of your products only to return it later. As an Amazon seller, you’ll be in charge of covering costs for any item that the customer returns to your warehouse.

How Much Money do You Need to Get Started Selling on Amazon?

In general, it takes around $500-$3000 to get started selling on Amazon’s marketplace. The money you’ll Binance BSC NFTs to invest will have to cover the following aspects of your business:

  1. Required costs
  2. Inventory costs
  3. Shipping costs
  4. Product photoshoots
  5. Tools and supplies
  6. Inventory Costs

Your inventory costs will be the most significant upfront investment for your Amazon business. After all, it’s going to be what you’ll be selling to customers on the platform.

If you’re entirely new to selling on Amazon, you may feel reluctant to spend a lot of money on inventory since you don’t have a clear idea of what products will work with customers yet. To avoid running out of cash quickly, we recommend that you just invest around $500-$1000 in the beginning and test out which products will sell.

Product Photoshoots

As you’re running your Amazon business, you can’t settle for subpar photos. Having quality product photos will be essential to getting the customer’s attention and driving the most sales.

Part of your budget will be investing in professional photoshoots so you can make your online products stand out. Your pictures must showcase your product from different angles so the customer can get a clear view of the item and see it in a professional light. Low-quality images won’t communicate a high-quality offering.

Advertising Costs

It’s not enough to just upload beautiful pictures to your Amazon store. To drive more sales, you’ll also want to invest in advertising and boost your reach as much as possible.