Is Amazon's Fee Structure Getting Out of Control? or is it just me?
Hi everyone,
I genuinely want to get your thoughts on this. Here's the situation:
I sold a small toy teddy (no box) for £25.86, and then Amazon's fees kicked in, leaving me with the breakdown below. After deducting the product cost of £12.50, I’m left with just £4.94. That’s a staggering 32.55% in fees before even accounting for the cost of the product.
Amazon fees:
Base amount: -£3.88
Tax: -£0.78
Digital services fee:
Base amount: -£0.14
Tax: -£0.03
FBA fulfilment fee per unit:
Base amount: -£2.99
Tax: -£0.60
Total fees: -£8.42
Product cost: -£12.50
Amount left: £4.94
This seems wildly excessive. I know we have to pay to sell on Amazon, but it feels like there’s hardly anything left for sellers. Is this just the cost of doing business on Amazon now, or are these fees getting out of control? I would love to hear your thoughts and experiences.
Thanks All!
Is Amazon's Fee Structure Getting Out of Control? or is it just me?
Hi everyone,
I genuinely want to get your thoughts on this. Here's the situation:
I sold a small toy teddy (no box) for £25.86, and then Amazon's fees kicked in, leaving me with the breakdown below. After deducting the product cost of £12.50, I’m left with just £4.94. That’s a staggering 32.55% in fees before even accounting for the cost of the product.
Amazon fees:
Base amount: -£3.88
Tax: -£0.78
Digital services fee:
Base amount: -£0.14
Tax: -£0.03
FBA fulfilment fee per unit:
Base amount: -£2.99
Tax: -£0.60
Total fees: -£8.42
Product cost: -£12.50
Amount left: £4.94
This seems wildly excessive. I know we have to pay to sell on Amazon, but it feels like there’s hardly anything left for sellers. Is this just the cost of doing business on Amazon now, or are these fees getting out of control? I would love to hear your thoughts and experiences.
Thanks All!
2 replies
Seller_QuM1AZgzfU9x4
I mean the only fee there that is new is the DSF of 14p. Take off the VAT (since that's not Amazon's) and your down to around 27%. Whether that's excessive i guess is something to be decided before sending stock to FBA.
Some sellers will say there's not enough meat left on the bone, others will say you're paying for the ability to reach a customer base.
