December 30, 2018

Amazon Referral Fees for Multiple Units: How to Calculate

Amazon charges a commission on every item that is sold on their trading platform, understanding these charges is the first step to getting more out of Amazon.

Every seller who trades on Amazon has in one moment or the other wondered; “What's Amazon referral fees for multiple units sold?”.

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Amazon Referral Fee

Amazon Referral Fees are a percentage charged on the total price of the item sold. Most sellers pay on average 15% of their selling price as a Referral Fee. Referral Fees range from 6% up to 45% and it is dependent on the category your product is listed and your selling price.

How to Calculate Amazon Referral Fee

Calculating Amazon Referral Fee is pretty easy as it is a percentage of the price paid for the item. Let's assume you are selling a vase that is listed in the Furniture and Decor category for $50 which has a referral percentage of 15%, your referral fee becomes;

        $50 x 0.15 = $7.5 referral fee.

Some categories have a minimum referral fee of $1 which is applicable to items whose selling price is so low their referral fee is lower than $1.

Amazon Referral Fees for Multiple Orders

Multiple item order fees are simply an addition of the referral fee of each item despite the category they belong to. Let's say in addition to the example given above you also sell two Kitchen knives for $ 10 each, in the “Kitchen” category your referral fee  then becomes;

        ($50 x 0.15)+($10 x 0.15) + ($10 x 0.15) = $10.5 multiple item order referral fee

There are simply no discounts or incentives in selling multiple items on Amazon.

Amazon Account Fees

Sellers on Amazon operate either a professional or an individual account. Each type of account has its unique features that makes them preferable to different classes of sellers.

For businesses and large scale sellers, the professional seller account is usually the preferable option. With a subscription fee of $39.99 per month, you have access to unlimited features on the Amazon platform.

The Individual seller account is more suitable for occasional and low-volume sellers. This account is quite easy to set up and there's no monthly fee however you are required to pay a fee of $0.99 on each product you sell. This account has a lot of restrictions and limited to few Amazon features.

It is important to note that the $0.99 fee for each product is added to the referral fee for individual accounts. For professional sellers only the referral fee treated above is charged.

Amazon FBA Fees

In delivering your orders you can decide to ship out yourself, Fulfilled by Merchant (FBM) or you can let Amazon package and ship-out for you, Fulfilled by Amazon (FBA). The FBA option is open to both individual and Pro account sellers to ship their Amazon products.

For sellers who choose the FBA option, the FBA Fees covers services such as packaging, sorting, storage as well as shipping of products. Amazon also handles products that are returned.

FBA Fees are based on the size and weight of the product and they are divided into two categories:

  • Standard size products: this includes products that weigh less than 20 pounds and not more than 18” x 14” x 8” in size.
  • Oversize products: this category includes all products above 12 pounds and exceeding 18” x 14” x 8” in size.

Standard size product FBA Fees, ranges from $2.41 to $5.09, and oversized products FBA Fees, ranges from $8.13 to $138.23 and this commission is added to the referral and seller accounts fees.

The FBA fees for multiple items is an addition of the various shipping fee of different products ordered. Using the Amazon unit FBA economics dashboard you are able to view the various charges involved in Fulfilling by Amazon.

Despite the fees/commissions charged by Amazon, it remains a very profitable platform for selling your products to all parts of the world. Amazon exposes you to a larger market and when you are able to understand the fees involved in selling on Amazon you’ll be able to enjoy huge profits on this ever-growing market.