As Amazon becomes one of the world’s largest online retail platforms, more and more sellers choose to open stores on its platform. However, for sellers who are just starting to open stores on Amazon, it is crucial to understand how store fees are deducted. This article will detail how Amazon store fees are deducted, including monthly subscription fees, product sales fees, storage fees, delivery fees, and advertising fees. At the same time, we will also explore whether Amazon stores need to pay a deposit.
1. Monthly subscription fee
When opening a store on Amazon, sellers need to choose a store plan that suits their business needs. Amazon offers two store plans:
Individual Seller Plan: No monthly subscription fee is required, but a handling fee is charged for each sale.
Professional Seller Plan: A monthly subscription fee of $39.99 is required, but the handling fee is relatively low.
2. Product sales fee
Amazon will charge a certain percentage of sales fees based on the product category and price range you sell. This fee is usually calculated based on the sales price of your product on the Amazon platform. Different categories of goods may have different sales fee rates. Sellers can find specific fee information in Amazon’s fee calculator.
3. Storage fees
If sellers choose to store their goods in Amazon’s warehouses, they will need to pay storage fees. This fee is calculated based on the size, weight and storage time of your goods. In addition, Amazon also offers some preferential policies for storage fees, such as long-term storage discounts and free storage during events.
4. Delivery fees
When your products are purchased, Amazon will be responsible for processing the order and shipping the goods. To do this, sellers need to pay a certain percentage of the delivery fee. This fee is usually calculated based on the size, weight and transportation distance of your products. Sellers can enjoy cheaper delivery fees through Amazon’s delivery service.
5. Advertising fees
In order to increase the exposure and sales of products, sellers can choose to use Amazon’s advertising services. Amazon provides different types of advertising products, including search ads, display ads, and original ads. Sellers can choose suitable advertising products according to their needs and pay a certain percentage of advertising fees.
Does an Amazon store require a security deposit?
When opening a store on Amazon, you do not need to pay any form of security deposit. Instead, Amazon requires sellers to provide a valid credit card information as a way to pay fees and refunds. When you sell goods and earn income, Amazon will deduct the corresponding fees from your sales revenue and pay the remaining amount to you. Therefore, new Amazon stores do not need to pay a security deposit.
By understanding the fee deduction method of Amazon stores, sellers can better plan operating costs, improve operating efficiency, and achieve better results.