While the process of selling on Amazon may seem pretty straightforward, any brand who’s actually been there can tell you the real-world process is a little more complicated than that. And, when looking at fees, the short answer is yes — there are a ton of fees, both stated and hidden — associated with selling on Amazon. At the end of the day, Amazon is a for-profit company that has made billions by connecting consumers to the products they most want to purchase. As part of this process, revenue has to come from somewhere, and seller fees make up a bulk of that revenue.
How can there be hidden fees?
When a seller first starts out on Amazon and fills out its Seller Profile, there are two types of selling plans based on overall volume of sales. These are pretty set prices, and shouldn’t be surprising to anyone familiar with other online marketplaces like eBay or Etsy. On top of these set fees, however, there are multiple ‘associated selling fees’ that apply only to certain products, seller relationships, referrals, or other specific situations. These fees are completely under Amazon’s jurisdiction, which means they can change at any time.
One of the biggest surprises for sellers, however, are the Fulfilled by Amazon fees. While the FBA program is no doubt the easiest and most attractive route for most sellers to push their products out to consumers, it is rife with fees that can quickly add up and make a significant impact. Thanks to the growing number of Amazon Prime members, these FBA fees are constantly increasing to meet higher demand. Plus, it’s not always clear to FBA sellers exactly how they’re being charged by Amazon. One of these sticking points is the long-term storage fees, which Amazon charges per SKU. If your brand sells large products with a long sales cycle through FBA, your FBA fees will be through the roof. On the other hand, for brands moving a high volume of products through Amazon warehouses, the packaging and shipping fees can also add up. Either way, the tracking and monitoring necessary to understand FBA fees is a daunting process.
Is there any way to avoid seller fees?
Luckily, the answer is yes – there is a way for brands to avoid Amazon seller fees all together. Partnering with a single third party seller like SupplyKick moves all of the selling responsibility – including the fees – off of the brand’s shoulders and onto SupplyKick’s. Instead of constantly coming face-to-face with multiple seller fees that have little to no context behind them, brands can focus time and resources on making great products to sell. Let SupplyKick take the guesswork out of Amazon fees – get started today!
While the process of selling on Amazon may seem pretty straightforward, any brand who’s actually been there can tell you the real-world process is a little more complicated than that. And, when looking at fees, the short answer is yes — there are a ton of fees, both stated and hidden — associated with selling on Amazon. At the end of the day, Amazon is a for-profit company that has made billions by connecting consumers to the products they most want to purchase. As part of this process, revenue has to come from somewhere, and seller fees make up a bulk of that revenue.
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