It might only take one click to buy a product on Amazon, but for sellers on the site, calculating revenue is a much more overwrought process.

There are selling fees, subscription charges, expenses for packaging, prepping and distributing and return-related costs to consider – not to mention all the general overhead of your business, like taxes, travel, website hosting, payroll, electricity and everything under the sun.

It’s complicated, to say the least.

So what do you do?

How do you make sure you’re operating in the black? That your business is worth the time, effort and resources you’re putting into it? That it’s a viable bet for the future? Let’s break it down.


Amazon Selling Fees

First, let’s take a look at all of the Amazon-specific fees you’ll pay as a seller. We’ll go into the other expenses and costs of your business later on in the post.

Currently, Amazon charges these various fees to its sellers:

Subscription charges – If you plan to sell 40 items or more per month, you’ll pay $39.99 each month in subscription charges, making you a “professional” seller. If you sell less than 40 per month, you won’t have a subscription charge.

Per-item fees – Unless you’re a professional seller, you’ll owe a $0.99 fee on every item you sell. Professional sellers don’t have per-item fees.

Referral fees – Amazon will charge either as a percentage of the sale (anywhere from 5 percent to 45 percent, depending on the product category) or $1 to $2 per product. You’ll get charged whichever fee is the highest.

Fulfillment fees – Going the Fulfillment by Amazon route? You’ll pay a variety of fulfillment fees based on the product’s dimensions and weight. It’s typically somewhere between $2 and $10 per item. There will also be added fees if you want Amazon to prep or label your orders as well.

amazon seller fee calculator

2018 Fulfillment and Monthly Storage Fees

Below are three product examples how FBA fees would impact your overall Amazon seller fee total:

amazon seller fees calculator

Closing fees – These are fees designated just for books, video games, DVDs, software and gaming consoles and vary depending on product category and shipping details.

It’s definitely a lot of fees to keep track of, especially because many of them vary from purchase to purchase. Throw in the dozens of other costs you’re managing, and keeping track of cash flow and profitability becomes even more difficult.

Let’s look more into that now.

Other Amazon Seller Fees

So on top of Amazon’s selling fees, what other expenses do you need to consider when determining your revenues?

Well, there a lot. You’ll need to know:

1) Your acquisition costs per product, meaning how much it costs to buy the inventory, get it to your facility or send it to an Amazon distribution center

2) The costs of your business functions, including utilities, payroll, benefits, insurance, travel, taxes, marketing, web development, warehousing, rent and more

3) Your return-related costs, including shipping, packaging, mark-downs and more

Once you know these costs, you can start drilling down, determining exactly how much you’re making per product or SKU.


How To Use The Amazon Seller Fee Calculator:

You’ll first want to tally up the total resource allocation cost per product by taking all your indirect costs (the costs of your business functions in No. 2 above) and dividing it by the total number of units you sold in the last year.

The result is how much you should expect each product to cost you in resources. It should fall somewhere between $1 and $3 each. It should also be consistent month over month, so check it often.

BLOG POST: How to Become Successful on Amazon Seller Central with FBA

Next, head to Seller Central and use the reports function to pull your total fees for a one-week period. This Amazon seller fees calculator (of sorts) is located in the “All Statements View” area.

Amazon Seller Fee Calculator

Take note: how much is each product costing you in fees over a month? When added to your allocated costs per product, are you still able to make money on that SKU? If the margin isn’t very wide or your costs outweigh your recent revenue, you’ll want to keep a close eye on the situation.

Amazon Seller Fee Calculator

Work to minimize returns, opt out of FBA on certain SKUs or stop buying unprofitable products altogether if none of these methods work.

Staying on top of the profitability of each individual product you stock is vital to not just choosing the right inventory for your Amazon business, but also ensuring that business is around (and in the black) for the long haul.

For more advice on Amazon selling and profitability, email tara@cpcstrategy.com.

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About the AuthorTara graduated from the University of New Hampshire with a B.S. in Journalism / Business. Her passion for creative publishing and quality reporting landed her work opportunities at several companies in Massachusetts, New York and California. She is a leading voice behind CPC Strategy’s Blog. See all posts by this author here.