Amazon Selling Fees – How to Profit on Amazon AFTER fees

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Wondering if it is possible to make a profit on Amazon, even after you have to pay the Amazon Selling Fees? The short answer is yes: It absolutely is. But before you list your items up for sale, you need to know what fees you’ll have to pay and how much they will cost you.

Here is the calculator used in the video: http://www.ecommercebytes.com/cab/tools/calcs/amazon_fee_calculator

Please note: These are the fees you pay if you fulfill the order yourself (such as through dropshipping, or sending the item to the customer). If you are using the Amazon FBA (Fulfillment by Amazon) you will have different costs.

Amazon Transaction Fee

Unlike eBay, none of the Amazon Selling Fees require you to pay anything when you list an item: But when you successfully sell an item, you must then pay. The first is the Transaction Fee. This costs $0.99. This is a flat fee across all items: It doesn’t matter if you’re selling a giant bed or selling a tiny necklace.

The exception to this is if you have a Professional Seller Account. If you do, then you are charged a flat $39.99 fee each month. This entitles you to not have to pay transaction fees on items that you sell. If you are selling more than 40 items each month, you should upgrade your account to this to save money.

Amazon Commission Fee

This is the second on the Amazon Selling Fees. For every item you sell, you need to pay an Amazon Commission Fee. This will be anywhere between 6-45% depending on the category. Most items will fall within 8-15%. This is worked out on the total cost of your item – this is excluding shipping. It does however include gift wrapping if selected by the customer.

There are some sneaky items that charge more than 15% that you need to watch out for. These high commission rates mean these items are trickier to profit from, so you should think twice before you sell these items on Amazon:

1) Sports & entertainment collectibles that sell for $100 (INCLUDING shipping) attract a 20% commission fee.

2) Jewelry has a 20% commission fee.

3) Items in the “Independent Design” category have a 25% commission fee.

4) And accessories for Amazon products have a staggering 45% commission fee. So think twice before you think about starting a Kindle accessory empire.

Amazon Closing Fee

And the final of the Amazon Selling Fees is the Amazon Closing Fee. This will either be a variable or fixed fee based on the type of item that it is:

Music, DVDs, software, computer games, video games, video game consoles & videos all have a fixed $1.35 closing fee. If the buyer is international you don’t have to pay this, which is nice and helps sellers cushion the cost of international shipping.

For everything else you pay based on the type of shipping selected by the customer and the weight. Here is how much you pay:

Domestic Standard Shipping: $0.45 + $0.05/lb
Domestic Expedited Shipping: $0.65 + $0.10/lb
International Shipping: No fee

But keep in mind: While these may seem like expensive Amazon selling fees, they are actually pretty cheap as Amazon refunds you a portion of it through their Shipping Credit deal.

Is it still possible to make a profit on Amazon, despite paying all of these Amazon selling fees? Absolutely! If you find items that have a high demand, but low seller supply, you can list items for prices that leave lots of room for profit, especially thanks to the Shipping Credit. We reveal one item in our free ebook, “How to Make $10,000 a Month by Dropshipping” – download it now: http://wholesaleted.com/4-step