Listing products on Amazon is free, however, as soon as sales are made, the platform takes a percentage of the sale
If you opt for an individual selling plan on Amazon, you should expect to pay $0.99 for each item you sell and variable closing fees that range between $0.45 and $1.35, including shipping fees
Easyship helps reduce shipping costs with up to 91% off discounted shipping rates for 550+ courier solutions
Amazon is one of the world’s leading eCommerce platforms – but selling on the massive online marketplace comes at a price: Amazon seller fees.
The cost to sell on Amazon can be greatly impacted by the platform’s seller fees, so online merchants need to know how to cut costs in order to maximize their profit. To that end, here’s a closer look at how to reduce Amazon shipping costs.
How Much Does Amazon Charge for Selling?
Listing products on Amazon is free. However, as soon as sales are made, the platform takes a percentage of the sale. The cost to sell on Amazonis based on three factors:
Shipping fees
Referral fees
Variable closing fees (VCF)
If you opt for an individual selling plan on Amazon, you should expect to pay $0.99 for each item you sell and variable closing fees that range between $0.45 and $1.35, including shipping fees. This plan is most suitable for small business owners that sell less than 40 items per month.
If you opt for the professional selling plan, Pro Merchant, you must pay a membership subscription fee of $39.99 per month and six to 25 percent in referral and variable closing fees. However, pro Merchants don’t pay any per-item $0.99 Amazon seller fee. This selling plan is generally best suited for businesses that sell 40 products or more every month.
Take note that the referral and variable closing fees are usually subtracted from the total amount a particular product is sold for, and this includes selling price, shipping fees and other related charges. The percentage charged depends on the category of products being sold.
For those who sell using Fulfillment By Amazon (FBA), the fees payment structure is very different and usually calculated using an Amazon FBA fee calculator. Although this selling plan is convenient, it comes with additional charges based on the size and weight of your products and the duration they’ve been kept in Amazon’s warehouse.
How are Amazon Seller Fees Calculated?
Calculations of fee payments on Amazon are done based on the seller’s location. This is why many factors are taken into consideration when calculating Amazon seller fees. Some of these factors include:
Order handling
Picking and packing of orders
Outbound shipping
Product weight handling
30-day storage
Inbound shipping
Prep service
The Amazon seller fees calculatortakes the above factors into consideration in coming up with the final fee structure for selling your products on the platform. If you’re fulfilling orders yourself, there are certain aspects you won’t be charged for, such as weight handling and storage.
How Often Does Amazon Pay Sellers?
Amazon pays its third-party sellers every two weeks.
However, this might take longer for new sellers, with the main reason being that it takes some time to have the new seller’s banking information set up. This usually takes as little as one week or as long as 30 days.
Having set up your account, things get easier going forward. With the Amazon FBA calculator, fees are calculated, subtracted and your accrued earnings paid out every two weeks. For example, payments are usually processed every other Saturday and by the following week Tuesday, funds are made available to the seller.
How to Reduce Amazon Fees
Amazon seller fees and other expenses can take a bite out of your profits faster than you’d realize. Fortunately, there’s plenty that online merchants can do to lower their Amazon selling costs. Here are just a few tips on how to reduce the cost to sell on Amazon!
1. Print Your Labels Online
Printing your own labels online is a simple but effective way to save money if you’re shipping through Amazon. Learn how Easyship’s label printing options here!
2. Use USPS Priority Mail
This is especially beneficial for online merchants who always ship lightweight items. USPS Priority Mail also comes with free boxes and can often be cheaper than the postal service’s flat-rate option too!
3. Always Negotiate with Couriers
If you send out large shipments consistently, you can always negotiate for significant discounts with the courier you’ve been using. With discounted Amazon seller shipping rates, you’ll be able to save money!
Easyship is the top shipping and logistics company working with a network of over 250 couriers worldwide. This has put us in a position to negotiate some of the best shipping discounts with leading couriers, and we can help you reduce your shipping expenses by up to 91%.
As stated, product categories determine the Amazon referral feeyou must pay. For example, if you sell fashion items, the referral fee is up to 20 percent, while beauty products and backpacks are as low as six percent and three percent, respectively.
5. Source Free Packing Materials
You don’t always have to use brand-new boxes and packaging materials for packing! You can look for used boxes and packing material both offline and online. You can even use shredded magazines and newspapers to pad items too.
6. Consider Volume
Being that UPS, FedEx, and many other couriers calculate most of their fees based on volume as against weight, you can save money by making shipping adjustments. For example, your Amazon FBA feescan potentially be cut if you ship two smaller boxes instead of one large box!
7. Increase Your Average Selling Price
The more expensive your product price is, the higher your product margin. On this note, always try to sell products that cost $35 and above. For example, $15 earrings attract fees of up to 36.2 percent, while a $144 kitchen appliance attracts a fee of 16.2 percent.
8. Go For Exclusive Products
This is another great way to cut costs while selling through Amazon. Try to get exclusive rights from specific suppliers and become the sole distributor of their items. This way, you can charge a significant amount for them without fear of losing sales to many competitors.
9. Aim for Marginal Variable Closing Fees (VCF)
In order to further reduce your Fulfillment by Amazon fees,you should take your time to calculate the VCF of the product you intend to sell. It wouldn’t make any sense to sell books for $5 and incur up to 20 percent VCF when you can sell books in the range of $30 or more!
10. Be Selective with Products You Sell and Which Amazon Plan You Use
Finally, being selective can be important when it comes to cutting those Amazon seller fees. If your products are priced under $15, try to avoid using Fulfillment By Amazon (FBA). This is because charges are made by weight, not by price. Essentially, this means that a $5 item and $150 item that weigh the same will be charged the same fulfillment fees!
Cut Your Amazon Costs Today with Easyship
Amazon seller fees can add up and increase your cost to sell on Amazon fast. However, by reducing referral and variable closing fees, being selective of the items you sell, splitting packages into smaller boxes, negotiating for discounts, and using free and lightly-used packing materials, you can cut your Amazon selling costs just as fast too!
Another way to cut those Amazon selling costs? With Easyship, of course! We offer 550+ courier solutions from major couriers around the world with discounted rates of up to 91% off. Sign up for Easyship today to sync up your Amazon store and start saving money!
How to Find the Cheapest Shipping With Easyship
If you are shipping from one side of the US to another, you might be expecting expensive shipping costs and slow delivery times, however with the right tools this isn't necessarily the case. To break down the cheapest shipping rates available, in this example we are going to ship a small package from New York to Los Angeles.
We will use the following dimensions and plug this into the Easyship Shipping Rate Calculator to compare prenegotiated rates from international shipping services:
Weight of package: 2lb
Box Dimensions: 12in x 11in x 1.5in
Contents for customs forms: Accessory (no-battery)
Origin: New York City, NY
Destination: Los Angeles, CA
To help you analyze the cheapest international shipping label options available, we have ranked each service for sending a package, based on the estimated prices from over 250 global couriers. While also focusing on the estimated number of business days it takes to arrive at the shipping address, plus the type and quality of tracking available.
Courier
Delivery Time
Tracking
Total Cost
UPS® Ground Saver
5 working days
Regular
$8.97
USPS - Ground Advantage
2 - 5 working days
Regular
$9.17
UPS® Ground
4 working days
Excellent
$10.09
UPS 2nd Day Air®
2 working days
Excellent
$10.16
FedEx Ground® Economy
2 - 5 working days
Excellent
$10.64
USPS - Ground Advantage Signature
2 - 5 working days
Regular
$12.87
FedEx Express Saver®
2 - 3 working days
Excellent
$13.05
USPS - Priority Mail
1 - 3 working days
Regular
$13.17
FedEx 2Day®
2 working days
Excellent
$14.35
UPS 3 Day Select®
3 working days
Excellent
$15.03
FedEx Ground®
1 - 3 working days
Excellent
$15.38
USPS - Priority Mail Signature
1 - 3 working days
Regular
$16.87
UPS 2nd Day Air A.M. ®
2 working days
Excellent
$22.04
UPS Next Day Air Saver®
1 working day
Excellent
$43.22
FedEx 2Day® A.M.
2 working days
Excellent
$46.19
UPS Next Day Air®
1 working day
Excellent
$49.76
USPS - Priority Mail Express
1 - 2 working days
Regular
$54.15
UPS Next Day Air® Early
1 working day
Excellent
$79.76
FedEx Standard Overnight®
1 working day
Excellent
$85.57
FedEx Priority Overnight®
1 working day
Excellent
N/A
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Key points
Key Points:
Listing products on Amazon is free, however, as soon as sales are made, the platform takes a percentage of the sale
If you opt for an individual selling plan on Amazon, you should expect to pay $0.99 for each item you sell and variable closing fees that range between $0.45 and $1.35, including shipping fees
Easyship helps reduce shipping costs with up to 91% off discounted shipping rates for 550+ courier solutions
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Discover the Cheapest Shipping from USPS, UPS & FedEx
Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 550+ courier services at a glance.
Find the guaranteed cheapest shipping in seconds with Easyship’s free shipping rate calculator. Compare discounted rates from USPS, UPS, FedEx, and 250+ global couriers at a glance.
Save up to 91% off shipping with Easyship’s discount courier rates. Create your free account to save instantly on 550+ courier services, including USPS.
Discover the Cheapest Shipping from USPS, UPS® & FedEx
Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 250+ couriers at a glance.
Use Easyship’s free shipping policy generator to formulate your perfect holiday shipping policy for returns, tracking, and more. Just follow the prompts and you’re done!
Learn how to ship internationally without missing a step. Our case studies show you proven tactics for shipping worldwide from Easyship users who did it right.