Investment opportunities are everywhere these days, and many people decide to invest in various spheres, in particular ecommerce. However, they forget one thing about investment: the money!
Here’s a secret that all business owners should know prior to starting an actual business – it’s not about having lots of money, it’s about knowing how to manage it. You’ve got to tell your money and finances what to do, otherwise they will leave you in leaps and bounds, believe us! This is why we continue our educational movement and write blogs about such things like finances, eCommerce inventory management, and of course, fees of different online platforms, what you should know before opening an account!
Amazon, the biggest ecommerce platform most people choose to invest it, comes with its own fees. Whether it’s the fees you pay when you create your Amazon account, or the fees Amazon receives if you have them ship out your products, there are always fees.
Even though these fees are not astronomical, they can be potentially disastrous if not properly observed. So, let’s talk about what they are, why they are there, and how you can manage them:
Amazon Referral Fees
This type of Amazon fee is related to the Amazon-seller relationship. It’s not a secret that this eCommerce giant has made it ten times easier to shop, and of course, sell online. But hey, Amazon doesn’t and won’t do it for free; no way, don’t even think about it! For the help and simplification of the selling processes, Amazon requires you to pay referral fees.
The percentage that Amazon will take away from you highly depends on the category of the products you’re selling. Normally, it varies from 6-15%, so go ahead and look at the category you’re selling in! For example, referral fee of personal computers is 6%, Camera and Photo 8%, for 3D Printed Products 12%, Toys and Games 15% and so on.
Amazon Closing Fee
Think of it as a referral fee which is charged specially on the media products you sell. According to Amazon, media products are books, DVDs and so forth. There’s nothing to talk about when it comes to Amazon closing fee, because it’s practically the same as the previous one. But if you want to know a bit more about this fee, take a look at what Amazon is saying “Sellers also pay a closing fee of $1.80 per media item that is sold. Media categories are Books, DVD, Music, Software & Computer/Video Games, Video, Video Game Consoles, and Video Game Accessories.”
Amazon also has fees like Refund Administration Fee, Rental Book Service Fee, High-Volume Listing Fee, and of course, Amazon FBA fees. Even though Fulfilment by Amazon helps sellers a lot, it also has a bunch of fees that people should pay in order to keep up their position of FBA sellers.
In our next blogs, we will talk about Amazon FBA fees in order to be sure that sellers like you are aware of Amazon’s guidelines, conditions and policies. The key to success entails having the proper information about the field you’re going to dive into, so be confident and read our blogs to know more about the industry. Right after having the information at your hands, you can always contact us and we will make your wholesale experience even more interesting and mind-blowing. The word of wholesale has many secrets, do you want to find the answers? Bring your investment to us, and we’ll get the ball rolling on your online business!
