FBA Fees (Individual Account)
I have sold my first lot of products I have sent in to Amazon. Sales were approximately £163. I have only been given, after fees, around £60 with £30 unaccounted for and what appears to be £100 gone on fees.
An example would be one product in which sold for £13. Amazon's fee for that individual product was £6.71, over 50%.... returning me a net from the account of £6.29. Surely that can't be right?
Has anyone had this whereby the fees seem far too large for the sales revenues generated?
Any help would be appreciated.
FBA Fees (Individual Account)
I have sold my first lot of products I have sent in to Amazon. Sales were approximately £163. I have only been given, after fees, around £60 with £30 unaccounted for and what appears to be £100 gone on fees.
An example would be one product in which sold for £13. Amazon's fee for that individual product was £6.71, over 50%.... returning me a net from the account of £6.29. Surely that can't be right?
Has anyone had this whereby the fees seem far too large for the sales revenues generated?
Any help would be appreciated.
15 replies
Seller_ZJhFeE3tNKzfh
Its certainly possible - though its going to depend on the size and weight of the product and what category it was in.
Seller_76AUwmqvSyRIM
Even long-standing sellers can get surprised by Amazon fees, especially FBA fees. I am currently running down stock of many of my FBA items as the fees have risen to a ridiculous extent. This happened last year when Amazon started charging by volumetric weight.
I have one item selling at £164.75 FBA and £155 FBM giving me the same profit margin. As most buyers don't know that the Buy Box is not the only available offer, they see the high Prime price and move to someone else. Not having the high FBA offer will help to get more sales.
The moral of the story is "check and double check all the fees" using the rate card or the revenue calculator before finalising the selling price.
Seller_76AUwmqvSyRIM
Never assume, especially with Amazon.
Seller_HEnjp9KQXT8Q3
I see it all the time. Sellers who haven't worked out the fees correctly.
In the reports section, and you can download reports for expected fees then add to Excel the cost price of the item.
Don't forget the VAT as Amazon will deduct that unless you are set up for VAt correctly.
You pay 20% VAT on the sale, not the amount you get from Amazon.
I see sellers selling items via FBA at £1.99 i don't think that is possible now as the lowest fee I've seen is about 1.34 referal and FBA so take the VAt off the 1.99 it really doesn't leave much!
Seller_HMxMRdomHkjHi
When you say Individual Account are you referring to the selling plan? As you cannot be registered as an individual seller if you are buying to sell for profit. You must have a business account and provide your UTR to Amazon. Side hustles without paying tax are not allowed on Amazon
Seller_Fg2fqaWOnEtha
I see things like that quite often, I know how much the product costs from the manufacturer and how much the fees are and they are making a loss every time they sell. They are normally brand new sellers, therefore they are not trying to get rid of old stock. Besides, when a product sells well there is no need to price it at £1.70 when everyone else sells it at £5!
