Amazon Seller Commission Charges & Fees

How Much Commission Does Amazon Take?

In order to keep your bottom line healthy, it's important to have a strong grip on how much you spend. One of the major queries that ambitious business owners usually have when they first learn about selling on Amazon is, "How Much Commission Does Amazon Take?" After all, you want to ensure that you will make profits if you sell on the biggest e-commerce platform in the world. It is essential to comprehend Amazon Seller Fees & Charges if you want to sell on Amazon India and dominate the competition. Read on to learn about Amazon commission rates and seller fees - how much does Amazon take from its sellers as Amazon seller fees, and what are the associated costs?

What is Amazon Seller Fees?

Amazon charges third-party sellers commission fees, commonly referred to as Amazon seller commission fees, in exchange for the right to sell their goods on the Amazon marketplace. A seller who offers their goods on Amazon and makes a sale must provide Amazon seller fees equal to a portion of the sale price.

Different Types of Amazon Seller Commission Fees in India

Here we discuss the various types of Amazon seller commision fees and Amazon commission rates in India.

1. Referral Fees

The "commission" paid to Amazon for every product sold on their website is a referral fee. An important part of Amazon Seller commission charges is referral payments, determined by the goods category you are selling in and the item's selling price. Starting at 2% for books under $250, the referral fee percentage can reach a maximum of 22.5% for designer jewels. The warranty services have the highest referral fee of 38%. You are not required to pay these costs upfront, though. Instead, amazon seller commissions are deducted from your Amazon account following a transaction.

2. Fixed Closing Fees

Depending on an item's price range, Amazon also levies a fee in addition to the referral fee. A predetermined amount is charged for closing costs for each sold unit. They cover the expenses of Amazon's numerous services, such as return processing, customer assistance, and payment processing. The closure charge amount varies depending on whether prepaid or Cash on Delivery (COD) shipping was selected for the purchase. The closing fees are taken out of the sale's revenues, the same as the referral fee, so you don't have to pay them upfront.

3. Amazon Easy Ship Weight Handling Fee

a. Easy Ship: Easy Ship provides regional, local, and national shipping rates for merchants, making it simple for them to manage shipments. The product's weight determines the cost of Amazon's easy shipping. It is determined using the greater of the actual weight or the volumetric weight. A product's volumetric weight is determined by multiplying the package's dimensions (in cm) by 5000 and dividing the result. The volumetric weight that results will be in grams.

b. Self-Ship: Since Amazon doesn't charge for shipment, merchants are entirely responsible for the delivery and courier fees with Self-Ship.

c. FBA by Amazon: Goods storage, packaging, and shipment are handled by Fulfillment by Amazon (FBA), which assesses weight handling costs in accordance with the size and location of the goods.

d. Flexible Amazon Seller: A tailored fulfillment system called Seller Flex combines the advantages of FBA with the adaptability of self-shipping.

4. Miscellaneous Fees

a. Pick and Pack Charges (FBA Only): Products sold through Amazon FBA are subject to the per-unit Pick & Pack Fee. The price is Rs13 for Standard products and Rs26 for Oversize, Heavy, and Bulky items.

b. Fee for Storage (FBA Only): Products kept at Amazon Fulfillment Centers are subject to a monthly storage fee that is calculated at Rs 45 per cubic foot.

c. Fees for FBA Removal (FBA Only): Removal of FBA Whether taken from Amazon Fulfillment Centers for returns, disposal or return to the seller, goods incur fees. Standard products cost $10 for Standard Shipping and $30 for Expedited Shipping, whereas Heavy & Bulky items cost $100 for both shipping choices. Amazon commission fees are calculated per unit.

Conclusion

Amazon is a highly intriguing platform to employ due to its immense popularity and well-earned reputation for putting customers first. Amazon seller fees will decide how profitable your marketplace business will be. You must know all the Amazon selling expenses, such as Amazon seller commission charges, commission rates, and Amazon seller fees. Remembering this information, you can choose worthwhile items and succeed in this big, rapidly expanding industry. To assist merchants in managing their accounts on multiple online marketplaces, Gonukkad offers several services. Check out GoNukkad to optimize your Amazon seller account and increase your online presence.