Whether you’ve just decided to become a seller on Amazon, or you’re still considering becoming an Amazon seller, it’s essential to understand the requirements, policies, and rules you’ll be required to follow when signing up for an account. Even if you have experience selling on another platform, selling on Amazon is an entirely different ballpark.
Amazon is a fantastic marketplace for sellers to increase sales, build brand awareness, and expose to a large audience at one time. However, these advantages don’t happen without paying for them, which is where the seller repayment fees come in. This is one of many payments you might owe Amazon, depending on your specific seller account and the products you sell.
The idea behind the seller repay fee is to cover any unpaid charges from the past. For example, if you pulled money out from your account but didn’t wait to pay off the service and fee charges, Amazon will bill your card for the remaining balance. This charge will show on your credit card statement as a “seller repayment” fee.
If you want to understand how Amazon seller repay fees work, along with the other expenses you’ll incur as an Amazon seller, continue reading this article to learn everything you need to know.
What is Amazon Seller Repay?
The idea behind the Amazon seller repay charge is to cover the monthly service fees or charges that are associated with your specific account, usually a $39.99 fee. Even if you’re not actively selling any products, you’ll still need to pay fees for having an Amazon seller account.
Let’s say that you’ve already emptied out your Amazon account to your bank account and have left nothing in your account balance. Amazon will still need to take those charges out of your account and will charge the card on file instead if there is a zero account balance.
The situation above is one example of the type of situation that may occur with your Amazon seller account. It’s essential to stay on top of your Amazon seller account to understand what you’re paying for and the fees that are adding up. If you’re not aware of your finances or the fees, you might find yourself with an Amazon Seller repay charge on your account.
Amazon Seller Fees You May Incur
When you create your account, there are decisions you will make that will impact how much you’re paying in fees each month. Amazon will always collect these fees on time, and if you’re not careful, they can quickly add up on your account balance. Here are the various types of charges you may incur when creating an Amazon seller account.
Monthly Subscription Fee
Amazon features two different seller accounts, including an individual seller account and a professional seller account. The price for these accounts differs, as well as the benefits you’ll receive from them.
1. Individual Seller Account
For the individual seller account, you won’t need to pay a monthly subscription fee to keep your account. However, you will incur a .99 cent fee per item you sell along with any referral or variable closing fees.
The Individual Seller Account is the ideal seller account for anyone who has minimal sales. Amazon recommends this account to anyone selling fewer than 40 items each month.
2. Professional Seller Account
For the professional seller account, you will end up incurring a $39.99 fee every month. However, you won’t be subject to the .99 cent fee that individual accounts must pay. You will still need to pay referral and variable closing fees as well.
The Professional Seller Account is the ideal seller account if you make more than 40 sales a month because the .99 cent fee from the individual account plan can really add up. It’s important to note that you can change from a professional to an individual account if you find the fees are too much or the volume you’re selling changes.
On every listing, both professional and individual seller accounts are expected to pay a closing fee of $1.80 for any media item that is sold. This cost assessment is on top of any other fees that Amazon may apply.
The media items typically include video game consoles, video game accessories, computer/video games, software, videos, DVDs, music, and books.
On every item, you sell Amazon charges referral fees. The specific price will depend on the particular category of product you’re selling and the type of product sold.
Most products will incur about a 15% referral fee unless you’re in categories such as 3D printed products, video game consoles, unlocked cell phones, personal computers, or other consumer electronics.
Some categories, such as Amazon Explore, Amazon Device Accessories gift cards, and jewelry, can be charged upwards of a 20% referral fee.
On top of that, there’s a minimum referral fee you may have to pay, on a per-item basis, and ranges from .30 cents to $5.00. For a complete list of referral fees, you can check Amazon’s fee schedule.
High-Volume Listing Fee
If you sell a high number of items, you’ll be subject to a high-volume listing fee. You’ll have to pay this fee if your item is a non-media item, was created at least 12 months ago, has not sold in the previous 12 months, and had an active offer on it at some point.
Amazon waives this fee for the first 100,000 listings that are eligible. However, after you pass 100,000 listings, you’ll be subject to the $0.005 fee.
Fulfillment By Amazon Fee
With Fulfillment by Amazon, or FBA, you’re able to send your items to Amazon, and they will take care of shipping, packing, and stocking your orders. This process helps sellers to eliminate costs for a warehouse or shipping orders. Instead, Amazon sellers are free to focus on creating more sales for their business.
However, there are fees associated with using an FBA account. The exact cost varies on the size, amount, and price of the products you sell.
Amazon Seller Repay Charges
Last but not least are the Amazon Seller Repay Charges. This is the amount you’ll be charged every month, regardless of how much you sell, if you own a Professional Seller Account. The seller repay charge is a fee of $39.99 that will show up as a “seller repayment” fee on your credit card statement.
Manage Your Seller Account With Sunken Stone
Understanding the various fees you will incur as a seller is essential when selling on Amazon because it can make or break your financial success. Along with the Amazon seller repay charge, you can expect multiple other fees before your transaction is even finished.
If figuring out the right seller account strategy to ensure you’re saving the most money when it relates to Amazon fees sounds overwhelming, you can turn to your trusted partners at Sunken Stone to guarantee you’re always set up for business success. We’ll help manage your brand presence, increase sales and optimize your account for the least amount of seller fees.
Frequently Asked Questions
The total cost depends on the products you’re selling, the category, and the quantity. Professional sellers must pay $39.99 per month, in addition to referral and closing fees. Individual sellers must pay .99 cents per item sold along with referral and closing fees. The final fee percentage per order can range from 6% to 40%.
You can cancel your Amazon account by following these steps:
● Log into your seller central account
● Click on Contact Us Page
● Choose the “Close Your Account” button
● Fill out the form and submit your request
While this is not a typical fee you’ll incur, it will be applied during the refunding process. If you’re unable to send out the product and choose to refund your customer after payment has been processed, you’ll be charged an Amazon cancel order fee. This will be either 20% of the order cost, or $5.00, whichever is smaller.
This fee is why it’s so important to ensure your counts are up to date and you’re only selling the products you have in stock.
Unfortunately, the seller fees on Amazon are mandatory. If you’re selling, you need to expect these charges as part of your business expenses for selling on Amazon.
However, with these fees, you can sell on a busy marketplace and raise your brand awareness. If you’re trying to avoid fees and don’t want to sell your products on Amazon, you can always change to an Individual account and delete your listings.