For entrepreneurs aspiring to sell on Amazon in 2024, the possibilities are vast. Before diving into this dynamic world, it is important to fully understand the costs you need to budget for.
In this article, discover the different expenses associated with creating and managing a shop on the Amazon marketplace!
Seller account subscription
First of all, choosing between a professional account and an individual account is a fundamental financial decision.
Indeed, the professional subscription costs €39 per month. This plan allows unlimited product sales, and also provides access to detailed reports on your commercial performance and inventory management tools. To subscribe, you must have a business.
The the individual seller account is aimed at private individuals for those who want to test an idea or get rid of some used items. This plan has no monthly fees but charges a €0.99 fee per sale. Finally, it limits you to 40 sales per month.
Management and selling fees
To the question "how much does it cost to sell on Amazon?", you must also consider sales commissions and handling fees.
Deductions on each transaction vary depending on the product category: between 6% and 45%, with an average of 15%. For example, expect 15.45% for luggage, 7.21% for electronics, 13.39% for tools and DIY, or 8.24% for video game consoles.
Fixed handling fees amount to €0.30. Some categories are exempt from these costs, such as books, CDs, DVDs, vinyl records, software, and video games. However, these multimedia products are subject to a closing fee of €0.61.
Logistics fees
How will you store and manage your inventory? What type of shipping will you choose? Two questions that will affect your costs.
For example, Amazon offers its Fulfillment by Amazon (FBA) service. It simplifies the selling experience by handling storage, packing, and shipping of products.
There are several fees associated with this outsourcing:
- Shipping fees They are based on the item's dimensions or volumetric weight. Rates vary depending on size and weight and can therefore range from €2 to more than €50.
- Storage fees Amazon's monthly storage fees are calculated per cubic meter. They range from €18 to €43 per month, depending on the distribution center location, the month, and the average daily volume stored. Surcharges apply to items stored more than 271 days and to storage utilization rates exceeding 26 weeks.
- Optional service fees: They include local and international returns, disposal, labeling, bubble-wrap packaging, adhesive application, and opaque bagging. Billing is per unit based on weight and volume. These costs range from €0.32 to €13 per product.
Of course, you are not required to use the FBA service. You can choose to store your stock at home or in an external storage unit. Likewise for shipping, you can manage it in-house, with the carriers of your choice (La Poste, DPD, Chronopost, Colis Privé…).
In that case, compare the different market offers, request quotes, and see for yourself which option offers the best price/time-savings ratio.
Advertising fees
Do you intend to advertise? Whether via Google Shopping, Facebook Ads, Instagram Ads or Amazon Advertising, include the costs in your business plan.
No matter the platform, rates vary depending on keywords and competition. A flexible budget and frequent adjustments will be necessary to optimize return on investment.
Consider running simulations on advertising platforms to determine the budget you need to boost your products' visibility.
Our tips for selling on Amazon at a lower cost
As you can see, the question “How much does it cost to sell on Amazon in 2024?” has no fixed answer. It depends on sales volume, storage choice, product type, and your marketing strategy.
To minimize these costs, be sure to include them all in your business plan. That's the first step to controlling them! Then, it's advisable to start with a minimal inventory, managed by you—unless you already run an e-commerce store and your Amazon shop will be an extension of your online activity. In that case, see how to effectively couple inventory and advertising campaigns to reduce costs.
Finally, to save money, invest! It may seem contradictory, but using advanced management tools helps you optimize your inventory and commercial strategy. This will, in the long run, increase your return on investment.
One last tip: consider getting support from an e-commerce expert to simplify creating and managing your Amazon shop. Post your needs now on Codeur.com and find qualified professionals to support you throughout this process!
