Why are Amazon taking 60% of my revenue?!
so far I’ve made £1577 as a fairly new seller.. however Amazon have apparently taken £962 of my total revenue. This leaves me with £615 profit. I’m not selling Amazon accessories (at least I’m sure I’m not) so why are my fees so high!? They haven’t actually paid me £90 of that profit due to a transaction issue which has last since December. But adding that in still makes it a ridiculous cost just for a small standard FBA item.. I’m at a loss as to what to do because when I tried go on transactions it just states “Amazon fees” below the FBA fees and I can’t explore it
Why are Amazon taking 60% of my revenue?!
so far I’ve made £1577 as a fairly new seller.. however Amazon have apparently taken £962 of my total revenue. This leaves me with £615 profit. I’m not selling Amazon accessories (at least I’m sure I’m not) so why are my fees so high!? They haven’t actually paid me £90 of that profit due to a transaction issue which has last since December. But adding that in still makes it a ridiculous cost just for a small standard FBA item.. I’m at a loss as to what to do because when I tried go on transactions it just states “Amazon fees” below the FBA fees and I can’t explore it
20 replies
Seller_RlZVPg3d6ZUGP
Did you check all the fees before you chose the price? and take VAT into consideration?
Seller_ZJhFeE3tNKzfh
what fees do you think you are paying?
You only mention FBA fees. Are you aware of referral fees?
Seller_QuM1AZgzfU9x4
What do you think the fees are on the mouse pad thingy? Sometimes new sellers don't realise all the fees. They are:
£1.99 referral fee
£3.16 FBA fee
£1.03 VAT on the above
Total = £6.18
So that's 47% of the sales price.
Then there's the cost of sending goods to FBA, storage fees, potential refunds and the monthly fee which all come out of your seller balance.
Seller_EkGoiphKgUnUI
When you ship goods in you pay the shipping fees, when Amazon store your goods you pay storage fees, when they sell your goods you pay a referral fee, when they ship FBA to customers you pay fulfilment fees, when cust opens item and decides to send it back you pay a returns processing fee, then when Amazon determine its cust damaged and you recall it you pay a recall fee. Good luck working all that out...
Seller_QporLcVnvn2HY
if you are selling small items for under £10 then fees and vat are just £3 ( £1.22 sale fee , £1.34 referral , and 50p tax ) so that's only 30%
Seller_0jWlqgUh2docO
so your products don't cost you anything ?
Seller_uK2aGVnqbtliE
So.....I;ve read some of the other replies, and I'm adding mine:
I sell knitting patterns FBM for £2 each. With £2.80 postage added the buyer pays £4.80. Amazon takes £2.38 fees which is 49.6% for doing pratically nothing!! Certainly no storage/shipping fees etc. No VAT either.
Also, when I list a pattern it states that when sold I will receive £2.82, when you can see that what I actually get is £2.42.
So not only greedy but misinforming sellers too!!
Seller_QDokbHzWM3jpO
Unfortunately this is the reason I have had to stop FBA, the fees do not make it viable.
Seller_PTena7LrLt9Wh
I was turning over 250K FBA Sales, the profit margins were so low I stopped two years ago.
