Amazon controls over 40% of global online sales, making it a lucrative platform for businesses to sell products. However, one of the first questions potential sellers ask is, “What is the cost of starting an Amazon FBA business in 2024?” Understanding the various fees involved will help you estimate the startup costs and make informed decisions.

In this guide, we break down the key expenses to expect when starting your Amazon FBA business. Whether you’re looking to sell just a few items or scale up, knowing these fees is crucial to your success.

1. Amazon Seller Plans

Amazon offers two selling plans: Individual and Professional.

• Individual Selling Plan: Ideal for those selling fewer than 40 items a month, with no upfront cost. However, Amazon charges $0.99 per item sold.
• Professional Selling Plan: Costs $39.99 per month and is designed for sellers aiming to sell more than 40 items monthly. This plan allows bulk product listings, customizable shipping rates, and more.

2. Selling Services Fees

Amazon’s Selling Services program connects businesses with potential customers. There are two types of fees:

• Pre-Packaged Service Fees: Amazon takes 20% for services under $1,000 and 15% for services over $1,000.
• Recurring Service Fees: For subscription-based services, Amazon charges 15% of the transaction.

These fees don’t include signup fees, lead fees, or advertising costs, which can affect your overall expenses.

3. Per-Item Fees

For sellers using the Individual Plan, Amazon charges $0.99 per item sold. This fee is waived for Professional Plan users.

4. Referral Fees

Amazon charges referral fees based on the product category. For every sale, Amazon collects a percentage or a minimum fee, whichever is higher. This applies to both Individual and Professional Plan users.

5. Rental Book Service Fees

If you sell textbook rentals, Amazon charges $5 per rental. Be mindful of this fee when setting prices and shipping rates to avoid unexpected costs.

6. Refund Administration Fees

If a customer returns a product, Amazon refunds the referral fee minus the refund administration fee, which is either $5 or 20% of the original referral fee.

7. Variable Closing Fees

These fees apply to certain categories like books, music, DVDs, and video games. Amazon charges a $1.80 variable closing fee per item sold in these categories.

8. Shipping Fees

Shipping fees depend on factors like the type of product, selling plan, and delivery location:

• Individual Plan: Fixed shipping rates set by Amazon, ranging from $3.99 to $14.95 domestically and $16.95 to $46.50 internationally. Additional charges apply for overweight items.
• Professional Plan: Sellers can set their shipping rates, so it’s crucial to research competitor pricing to remain competitive.

9. Amazon FBA Fees

Amazon FBA (Fulfillment by Amazon) simplifies logistics by handling storage, shipping, and customer service. FBA sellers pay:

• Inventory Storage Fees: Charged monthly based on the type of product (dangerous or non-dangerous goods).
• Long-Term Storage Fees: For products stored for over 365 days.
• Fulfillment Fees: Covering picking, packing, customer support, and returns.

10. Multi-Channel Fulfillment Fees (MCF)

MCF fees apply if you sell on platforms other than Amazon but use Amazon’s fulfillment services. Charges range from $5.85 to $143.30 per item, depending on the product weight, order volume, and shipping speed.

Start Your Amazon FBA Journey with Eforce Ventures

Launching a successful Amazon FBA business in 2024 requires careful planning and budgeting. Using tools like our Eforce Ventures product research tool, you can optimize your listings with valuable insights and data to boost your success.

Contact Eforce Ventures today to get expert guidance and start your Amazon FBA business on the right foot!

By following this cost breakdown, you’ll be better equipped to estimate your Amazon FBA startup costs and plan accordingly for a successful launch in 2024.

Looking for expert advice on scaling your Amazon business? At Eforce Ventures, we offer tailored solutions to help Amazon sellers optimize their product selection, listings, and overall strategy to thrive in the eCommerce space. LinkedIn