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Amazon Seller Fees and Other Costs in 2022

Amazon Seller Fees and Other Costs in 2022

Selling products on Amazon is a great way to make money and reach customers around the world, but it’s impossible to do it for free. Having a great product that sells definitely helps, but you’re going to come face-to-face with the seller costs for having your products on Amazon.

However, the benefits of selling on Amazon and reaching over 310 million customers are far more beneficial than the small inconvenience of paying out fees.

Every seller with products listed for sale on Amazon has to pay annual expenses. These various costs get adjusted at the start of every new year in January and get carried out during the rest of the year. With the effects of the COVID-19 pandemic still ongoing, Amazon has delayed changes to their fees in June 2021 but will implement them again in January 2022.

Looking to sell your products on Amazon in 2022 and want to know what costs you’ll have to pay for the new year? Keep reading to see our guide for all of the Amazon seller fees and other costs you’ll have to endure in 2022.

The Main Amazon Seller Fees

Every seller on Amazon needs to pay four kinds of fees to list their products on the website for customers to buy. The four main fees for all Amazon sellers are sales, a seller account, shipping costs, and Amazon FBA fees.

Each of these will cost a percentage of your product cost or a flat rate per month, depending on a number of factors.

While all of these fees are mandatory, they aren’t the only ones an Amazon seller will have to pay. You will also need to pay for the shipment of your products too, which can vary in price depending on the types of products sold through Amazon.

When you sell a product on Amazon, you pay a fee to Amazon based on the selling price and sold item category. There are three categories of sale-related fees, including referral, minimum referral, and variable closing fees.

Referral Fees

Referral fees get calculated based on the product category and the selling price. For most sellers that make a successful sale on Amazon, the referral fee is 15% on average but can be much higher depending on the category the item is classified under.

Minimum Referal Fee

On most item categories, Amazon assigns a minimum referral fee. However, not every item will have this. This would include items such as books and gift cards.

When an item you sell does have one you won’t pay multiple fees when it gets sold, only the greater value of the two fees is the one you payout.

Variable Closing Fees

Closing fees are applicable to items like video games or game consoles, music CDs, DVDs, and books. There is a flat charge of $1.80 for these items, which gets added at the end of the sale.

Fees From Refunds

An extra fee comes from when a customer refunds an item they purchased. A refund administration fee gets added, where you pay $5.00 flat or 20% of the referral fee once the item is returned.

This is important because after you refund a customer you still need to pay the refund administration fee, whichever one of the two is the lowest value.

Seller Account Fees

There are two types of seller accounts that you can have when selling products on Amazon, individual seller, and professional seller accounts.

An individual account is for low-volume item sellers, while professional accounts are those who sell in items in high-volume. Both accounts have different perks for sellers but also come with different fees.

Individual Seller

Individual seller accounts don’t have to pay a monthly fee to Amazon but instead, have a $0.99 listing charge per sold item.

  • Individual seller accounts are allowed up to 40 product sales per month and limited to only categories based on their products
  • Individual accounts cannot give additional services like gift wrapping to their customers

Professional Seller

Professional accounts have a charge of $39.99 per month but receive a lot more perks for doing so.

  • Professional sellers don’t have to pay a listing charge on any items sold and have an unlimited amount of product listings
  • Professional accounts also have access to FBA inventory management, bulk product uploads to Amazon, and offer their customers services like gift wrapping

Shipping Fees and Credits

If you ship out Amazon orders yourself, then Amazon gives you credits for every sale to help cover the cost of shipping items out to customers.

However, Amazon does not credit you the exact cost for the item that you ship, instead it is generally lower than what you end up paying to ship something out.

Shipping Credit for Sellers

The amount of credit you get from Amazon is different for each item that you send out to customers. Depending on the category the item falls under, as well as weight and total size, you can get anywhere from $3.99 to $14.95 for domestic shipping costs.

Two-day shipping will give more credits than standard shipping. Larger items will also cost more to ship out, so the credit may not help out as much compared to shipping smaller items to customers.

Sellers who frequently ship out small items will gain more credit and pay less for shipping, while sellers with larger items will have to endure higher shipping fees for each sale.

Amazon FBA Fees

Amazon FBA stands for fulfillment by Amazon and is a cost that sellers pay to have Amazon stock, pack, and ship their products out. FBA fees can vary based on the size and weight of the sold products. The cost also covers the boxing and packaging of the items, as well as returns.

Depending on the weight and size of a product:

  • FBA costs can be from $3.99 to $6.39 for a standard-sized tier for small items
  • For large products, the cost can go increase as high as $143.30 in FBA fees when sold

Sellers will need to pay monthly storage fees and handling fees for their items. This covers packing and shipping, as well as the cost of storing their products within Amazon’s warehouse. Occasionally, sellers might also get overcharged by Amazon, but there are third-party solutions, like Bindwise FBA overcharge monitoring solution that helps to solve this quickly and efficiently.

Over 91% of sellers that use Amazon also use FBA to fulfill most of the orders from their customers.

In 2022, Amazon is changing the fees and limits for what categories all products will be categorized. After January 18th in 2022, small standard items will have a fulfillment fee of $2.35 per unit that is 6 oz. or less, and $4.94 for large standard items that are 2lbs to 3lbs.

Other Amazon Seller Fees

Outside of the main fees for Amazon sellers, there are additional fees that must be paid if certain conditions are met. Here is a breakdown of some of these fees.

  • Dangerous items that are considered hazardous have an extra FBA fee of $0.06 to $0.16 per unit
  • High-volume listings that are more than 100,000 listed products have a monthly flat-rate fee of $0.0005 per item.
  • Sellers who rent out textbooks have a fee of $5.00 for each textbook rental

Returns and refurbished items will have extra fees. Amazon can repackage items that are resold for $0.15 per unit. If an item is badly damaged or can’t be resold, another fee is added.

Labeling is an additional service included with FBA fees. This comes with an additional charge per item, which varies depending on if a custom labeling or barcode is added onto the packaging.

Knowing Your Fees for 2022

If you’re going to be adequately prepared to sell your products on Amazon in 2022, then you’re going to need to have all the right information on the costs for doing business on the platform.

Amazon has over 2.4 billion customers that visit the website per month, so you're not going to want to miss out on any potential customers. With our guide to all of the Amazon seller fees for 2022, you can put together a plan to help your business thrive and become successful for the upcoming year.

Want to learn more about selling products on Amazon and giving your product listing an edge over the competition? Sign up for Bindwise free account to avoid costly mistakes (like FBA overcharges) and to increase your profits.

Bindwise has powerful tools and solutions for merchants and brands online to help monitor and take action fast on critical updates for the products you sell.