What Amazon Sellers Need to Know About Current & Future Amazon Seller Fees

Navigating the world of Amazon selling can be complex, especially when it comes to understanding Amazon's seller fees. With various charges such as referral fees, fulfillment fees (if you're using FBA), and monthly subscription fees, it's crucial for sellers to have a clear understanding of these costs to effectively manage their finances. WishingUWell is here to simplify this process.

Understanding Amazon Seller Fees

• Referral Fees: View these as a gratuity for Amazon each time you make a sale. The gratuity's amount relies on the item sold and typically hovers around 15%, with a potential range from 6% to 45%. As of January 15, 2024, there will be a decrease in referral fees for clothing items priced under $20.
• Fulfillment Fees (FBA): These are comparable to the lease charges you pay for your products' storage in Amazon's warehouses and for Amazon's handling of your orders. The fee depends on your product's size and weight and can be as low as $2.50 for small, standard-sized items, and as high as $137.32 for exceptionally large ones. Beginning April 15, 2024, standard-sized products will see an average cut of $0.20 per unit in fulfillment fees, and large bulky-sized products will have a reduction of $0.61 per unit.
• Monthly Subscription Fee: This is similar to a club membership fee if you're a professional seller. It costs a flat $39.99 per month, no matter your sales figures.
• Storage Fees: Think of these as parking charges for your goods in Amazon's warehouses. The fee fluctuates based on the season and your items' occupied space, costing between $0.75 per cubic foot from January to September and $2.40 per cubic foot from October to December. Starting April 1, 2024, there will be an average decrease of $0.09 per cubic foot in non-peak monthly storage fees for standard-size products, facilitating sellers to stock adequate inventory.
• Return Fees: If a customer opts to return an Amazon-fulfilled item, you might be slapped with a returns processing fee, equivalent to the original fulfillment fee.

While these costs can accumulate, they also provide access to Amazon's vast customer base, Prime program, and world-class logistics network. However, managing these fees while maximizing profits can be a daunting task for many sellers.

How WishingUWell Can Help

WishingUWell is a full-service Amazon management agency that specializes in navigating these complexities. Our Full-Service Partnership is our most popular service tier, where we purchase products directly from brands, taking on the inventory risk. This allows brands to avoid worrying about their return on investment or financial risks associated with holding inventory. We also sell the products directly through our FBA account, meaning brands don’t have to concern themselves with their own seller fees, they just make a profit. Worried about tracking and handling FBA reimbursements? You definitely won’t have to concern yourself with that as we take care of that internally.

WishingUWell can help alleviate companies’ complex Amazon money management responsibilities as well as keep generating revenue for our partner brands!