1. Platform subscription fee
39.99 USD/month for North America
25 GBP/month for Europe
2. Product commission
Product commission, the previous table is 5%~15%, and the main products that can be made at present are actually 15% commission.
For an order, assuming the selling price is $100, the amount that can be deposited into the Amazon backend balance is $85, and Amazon will directly deduct the platform fees first.
Since February 1, 2018, Amazon has added a minimum sales commission based on categories. Amazon will calculate the commission for each item in the order separately. When the commission charged by the item according to the commission ratio of the category sold is less than the minimum sales commission, Amazon will charge the minimum sales commission.
3. Advertising costs
Total advertising costs = Cost Per Click (CPC) x number of clicks
If you want more orders, you need more clicks, and the total advertising costs will increase. If you don’t want to increase advertising costs, you have to control CPC.
Advertising investment performance = advertising fee/sales
Advertising fee = CPC x clicks
Sales = product unit price x sales volume
Sales volume = exposure x click rate x order conversion rate
Advertising investment performance = (CPC x clicks)/(product unit price x exposure x click rate x order conversion rate)
Promotional expenses: the proportion of promotion, for example, 10%, means that 10% of sales are spent on promotion.
Second kill activity: $150/activity in normal times, $300/activity in peak season.
4. Logistics fee
FBA is Amazon’s logistics delivery method, and its fees are the first-mile fee + FBA logistics delivery fee + monthly storage fee + inventory configuration service fee.
Amazon logistics delivery fee generally refers to the fee charged per piece, and the price is calculated based on the size and weight of the object. If it is a standard product within 2 pounds, then it is $3.96/piece. The logistics and distribution costs will be adjusted in different periods. However, since 2019, Amazon has increased the delivery fee and cancelled the difference between the peak and off-season. With the increase in overall costs, the product that could be purchased for $3.96 before now costs $4.71.
Amazon’s monthly storage fee is divided according to the size of the product, which can be divided into standard size and super-standard size; according to the nature, it can be divided into media products and non-media products. To use the FBA warehouse service, you need to pay a fee per cubic foot per month. One cubic meter per month in the peak season costs $82.9. If the inventory turnover rate is good, the product only needs to pay a monthly storage fee. For a large product, it generally costs $0.7 per month.
In addition to the monthly storage fee, Amazon will charge long-term storage fees twice a year for products stored in Amazon warehouses for at least 6 months. If the product is stored in the warehouse for 6 to 12 months, the warehouse fee per cubic foot is $11.25; if it is stored in the warehouse for 12 months or longer, the fee per cubic foot is $22.50.
In addition, there may be inventory configuration service fees, also known as warehouse consolidation fees. Amazon will randomly distribute the ordered goods to multiple warehouses. Amazon defaults to warehouse consolidation. If you set up warehouse consolidation, Amazon will charge per piece, and the specific fee depends on the number of selected destinations.