To be allowed to sell on Amazon, you pay a monthly fee of € 39.95 per month. This fee is charged to your credit card and you will have to pay regardless of whether you have sold something or not.
Platform Fee or Referral Fees:
For every sale via the Amazon platform you will first have to pay a standard "platform fee". This depends on your product category but is on average between 10%-15% of your gross sales per sale. If you send your sold products to your customer yourself, or if you use Fulfilment By Merchant (FBM), this would be the only fee you have to pay per sale.
Suppose you sell phone cases via Amazon that you send to your customer worth € 20 including VAT. The costs you pay are:
Amazon Platform Fee: 15% * €20 = €3
Own costs shipping Post NL Package: €4,50
This would cost you about €7.50 per sale. In this case, you would lose 30%-40% of your gross turnover to selling via Amazon with your own shipping. In general, you can assume that Amazon takes 33%, the supplier + carrier 33% and you yourself 33%.
Cost Fulfilment by Amazon (FBA)
The complete detailed overview of the costs to sell via Fulfilment By Amazon (FBA) from Amazon itself can be found here. We will continue with this overview.
Take into account the other costs that could be added such as:
- Stock storage
- FBA Prep Service
- Long-term storage
- Inventory placement service
- Etiketteerservice at FBA
- Stock removal (returns and deletions)
- Amazon Shipping Partners
- Costs for European Fulfillment Network (EFN)
- Costs for Multi-Channel Fulfillment
- Return processing
FBA Costs: European Fulfilment Network (EFN)
With the European Fulfilment Network (EFN), your stock remains at 1 location (Germany) and is shipped from there throughout Europe. This is a more expensive option and it takes longer before the order reaches the end customer. The advantages of this are the administrative convenience and you have to deposit less stock with Amazon.
FBA Costs: Pan-European
With Fulfilment by Amazon (FBA) Pan-EU, Amazon ensures that your stock is stored in local fulfillment centers so that the order reaches the local customer faster. This is also cheaper because Amazon can then use local logistics costs. The disadvantage of this is that you have to deposit more stock with Amazon (because it is spread over several centers) and that you take into account local regulations administratively.
Fulfilment By Amazon (FBA)
If you use Fulfilment By Amazon, you will have to stock up with Amazon. For this storage, Amazon will charge a fixed fee per month depending on the number of square meters that your stock will take up. Amazon calculates the cost of storage per square meter. In it, Amazon distinguishes between 2 types of storage costs:
- Short-term storage (<12 months)
- Long-term storage (>12 months)
Monthly Storage Fee:
Short-term Storage per M2
January – September €26,00
October – January €36,00
Monthly Storage Fee:
Long-Term Storage per M2
January – September €110,00
October – January €110,00
This is a very expensive option, which is why it is important to keep a good stock management so that you do not leave long-term stock with Amazon.