How Much Commission Does Amazon Marketplace Take?

by Marketing Team

Amazon marketplace commission rates , Amazon Referral Fee

How Much Commission Does Amazon Marketplace Take?

by Marketing Team

If you are an e-commerce retailer, you don't need any convincing about how popular the Amazon marketplace is as a brand. It is one of the most trusted marketing channels for online retailers, regardless of their business size. At present, Amazon is growing in leaps and bounds in all aspects. If you’re still not a part of Amazon, don’t let this opportunity pass you by. 

Being a beginner to start with on this platform, you can enjoy an overwhelming experience handling your business on Amazon. Grow your business rapidly and build a name for your brand by becoming an Amazon Marketplace retailer. Moreover, you can earn huge profits with a large customer base of Amazon. 

But simultaneously, there are certain myths about the commission in Amazon Marketplace that you need to know before becoming a seller. If you’re not aware of them, it can be difficult for you to price your products on Amazon. 

Let’s know about the Amazon marketplace commission rates and how profitable this platform is for your e-Commerce business.

Amazon offers two types of seller accounts for the merchants, and they are:

Amazon Vendor Central

Vendor central is a program, especially for the manufacturers and the distributors, that can be joined only via invitation. This account will grant the ownership of your products to Amazon so that they can take care of your marketing. As a vendor, you will sell your products to Amazon at wholesale rates. Thereafter, Amazon will sell your products according to their chosen price and shipping.

How it works: Manufacturers sell their inventory to Amazon at wholesale rates. Once they have sent the items to Amazon, the seller’s work is done. Amazon pays for the inventory directly to the seller and maintains ownership of the products. Amazon sells those products on the Marketplace (as Amazon) – choosing their own price and shipping options.

Amazon Seller Central

Amazon seller central is an interface for third-party sellers to sell their products directly to the customers of Amazon. As per this program, you will have to list your products as per the target market, set a fair price for them, and undertake marketing activities to expand your customer base. 

How it Works: Brands use Seller Central to list their products on the Amazon Marketplace and sell items as a third-party seller. Keep in mind, sellers are responsible for listings, advertising, and everything that comes with selling on an online marketplace.

What Amount Does Amazon Charge to sell your Products?

The Amazon marketplace commission rates depend on the plan you chose for selling your products on the Amazon platform. Amazon sellers can choose between a Professional or Individual plan.

Individual sellers pay $0.99 for each item sold on the marketplace, in addition to variable closing fees ranging from $0.45 to $1.35.

Professional sellers pay variable closing fees and referral fee percentages ranging from 6% to 25% (an average of 13%). Professional sellers also pay $39.99 per month, but they are exempt from the $0.99 per item fee.

Regardless of the number of the sold items on Amazon, it is obligatory to pay both the referral and the closing fees. Therefore, the best idea is to use the Amazon marketplace commission calculator to calculate the exact fees that you have to pay. Accordingly, you can price your products so that you don't suffer a loss from your pocket.

There is another alternative if you don’t want to pay this flat individual fee of $0.99 per item. You can opt for the monthly subscription fee option on Amazon and become a Pro Merchant Subscriber. But to subscribe to the Pro Merchant subscription plan, you have to sell at least 40 items on Amazon. Of course, it is needless to mention that this plan is a cost-effective solution for reaching millions of customers across the country.

What is the Amazon Referral Fee?

Referral fees and variable closing fees are subtracted from the overall sale (including selling price, shipping, and other charges such as gift wrap).

Amazon’s Professional seller account costs $39.99 each monthly subscription. The referral fee is a percentage of the total price of the product that you sell. For instance, if you want to sell a baby diaper at $30, Amazon will charge 12% of that item price ($3.6) as a referral fee.

Category

Referral Fee Percentages

Applicable Minimum Referral Fee

3D Printed Products

12%

$0.30

Amazon Device Accessories

45%

$0.30

Amazon Explore

30% for Experiences

$5.00

Automotive & Powersports

12%, except 10% for tires and wheel products

$0.30

Baby Products (Excluding Baby Apparel)

  • 8% for a product with a total sales price of $10 or less, and
  • 15% for products with a total sales price greater than $10

$0.30

Beauty

  • 8% for a product with a total sales price of $10 or less, and
  • 15% for products with a total sales price greater than $10

$0.30

Books

15%

--

Camera and Photo

8%

$0.30

Categories Requiring Approval

Referral fee percentages

$0.30

Cell Phone Devices

8%

$0.30

Clothing & Accessories (Including Activewear)

17%

$0.30

Collectible Books

15%

--

Collectible Coins

  • 15% for the portion of the total sales price up to $250 (with a minimum referral fee of $0.30)
  • 10% for any portion of the total sales price greater than $250 up to $1,000; and
  • 6% for any portion of the total sales price greater than $1,000

$0.30

Consumer Electronics

8%

$0.30

Electronics Accessories (Including Camera, Phone and Computer Accessories)

  • 15% for the portion of the total sales price up to $100, and
  • 8% for any portion of the total sales price greater than $100

$0.30

Entertainment Collectibles

  • 20% for the portion of total sale price up to $100
  • 10% for the portion of total sale price greater than $100, up to $1,000
  • 6% for the portion of total sale price greater than $1,000

--

 

What is the Amazon Variable Closing Fee?

The variable closing fee is the fee that pertains to the shipment of your product. This fee is fixed for the media products but varies for the other products.

You might be feeling a little scared by the number of fees that you need to dish out for selling your products on Amazon. But the reality is Amazon is an excellent marketplace for online retailers to turn their business into a profitable venture by reaching out to the millions. 

What Are the Most Important Amazon KPIs to Track? Amazon seller KPIs are essential to maintain good account health and improve your seller performance. To make impactful decisions about your business brand on Amazon, you need to use these metrics to deal with the key performance indicators (KPIs). These metrics will help you in monitoring the performance of your business on Amazon.

Conclusion:

The cost to sell on Amazon depends on your selling plan, product category, fulfillment strategy, and other variables. Selling on Amazon can be an immensely profitable channel for brands. C2 Corner provides end-to-end management and marketing service to multiply your sales in the Amazon Marketplace. We create & manage your product listing on Amazon in an optimized manner to rank products better than competitors.

Book a meeting here  

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