Detailed explanation of Amazon Australia site fee structure and tax regulations
Amazon Fee Structure
Monthly store rental fee
Amazon’s monthly rent for the store is a fixed cost, and the monthly rent for the Australian site is AUD 49.95 per month. For sellers with the Personal Selling Plan, there is no monthly fee, but you will need to pay $0.99 to the platform for each product sold; while sellers with the Professional Selling Plan pay a fixed monthly fee of $39.99 per transaction, not for each transaction. fee.
Sales Commission
Sales commission is the platform share charged by Amazon based on the actual sales price of the product. Every time a seller sells a product, the platform will charge a certain proportion of sales commission, usually between 8% and 15%. The specific proportion depends on different categories of products.
FBA fees
Sellers who choose FBA (Fulfillment by Amazon) shipping method need to pay corresponding storage fees and delivery fees. These charges are calculated based on the volume and weight of the product and are divided into charges for small sizes, large sizes, and bulk products. The cost of FBA also includes Amazon’s service fees and order processing fees.
On-site CPC advertising costs
Sellers can choose to place in-site CPC ads on the Amazon platform to promote their products. The investment and effectiveness of on-site advertising expenses directly affect product exposure and click-through rates. By setting keywords and bids, sellers can control the frequency and cost of ad display.
Amazon tax regulations
GST (Goods and Services Tax) consumption tax
Sellers selling goods on the Australian website need to understand Australian tax regulations. According to Australian tax laws, all goods and services sold in Australia are subject to 10% consumption tax (GST). Amazon sellers need to register with the Australian Taxation Office and obtain a GST registration number.
GST collection and reporting
GST-registered sellers are required to charge GST to buyers when selling goods, and report and remit these taxes in the appropriate tax filings. Amazon provides tools and reports to assist sellers in managing the GST collection and reporting process.
Avoid illegal operations
To avoid account closure and legal liability, sellers should comply with the regulations of the Amazon platform and the tax regulations of various countries. Do not manipulate reviews, do not sell fake and shoddy products, and keep product information true and accurate.
Before opening a store on Amazon, sellers need to carefully understand the platform’s fee structure and tax regulations in each country to plan a good business strategy. Reasonable cost control and compliant operations are the keys to ensuring the stable operation of the store. Regularly updating the latest regulations and working with professional tax advisors will help sellers achieve better results on the Amazon platform.