Navigating Amazon Selling Costs: A Practical Guide for CPG brands expanding into American market via Amazon

Are Consumer Packaged Goods (CPG) brand ready to dive into the thriving North American market through Amazon? As seasoned retail consultants, we appreciate the value of clear and honest information in your business journey. Let’s delve into the intricacies of the expenses tied to selling on Amazon, aiding you in making well-informed choices for a successful foray into the North American market.

Subscription Fees

Professional Selling Plan: This subscription is tailored for high-volume sellers and comes at a monthly rate of $39.99. It offers access to advanced tools and features, empowering growth.

Individual Selling Plan: A more flexible option for pay-as-you-go, charging $0.99 per item sold. It suits smaller businesses aiming to expand gradually.

Selling Fees

Referral Fees: The percentage of these fees ranges from 6% to 45% of the item’s sale price, contingent on the product category. Accurate categorization is vital for cost estimation.

Variable Closing Fees: This additional charge amounts to $1.80 per item sold, primarily affecting media-related products.

Minimum Referral Fee: It fluctuates by category, varying from $0 to $2 per item sold.

Fulfillment Fees

  • FBA Fees: The costs hinge on the item’s size and weight. For instance:
    • Standard Size (Small, 10 oz or less): $2.50 per unit.
    • Standard Size (Large, 2 lb or less): $3.31 per unit.
    • Oversize (Small, 2 lb or less): $8.26 per unit, with an additional $0.38 per pound above 2 lbs.
  • Fulfillment Fee for FBM (Fulfilled by Merchant): This cost varies and relies on the chosen shipping carrier and service.
  • Multi-Channel Fulfillment (MCF) Fees: These fluctuate based on size, weight, and shipping speed. For instance:
  • Standard Size (1 lb or less): $5.85 to $9.60 per unit.
    Oversize (2 lb or less): $8.80 plus $0.40 per pound above 2 lbs.

Storage Fees

  • FBA Inventory Storage Fees: Seasonal and size-dependent:
    • Standard-Size (January to September): $0.75 per cubic foot.
    • Standard-Size (October to December): $2.40 per cubic foot.
    • Oversize (January to September): $0.48 per cubic foot.
    • Oversize (October to December): $1.20 per cubic foot.
  • Long-Term Storage Fees: These sum up to $6.90 per cubic foot or $0.15 per unit per month.
  • Your online presence can directly impact in-store sales, making a strong case for a multi-channel strategy.

Return and Additional Fees

  • Returns Processing Fee: Corresponds to the original order fulfillment fee, specific to different product categories.
  • Removal Order Fees: Range from $0.50 to $0.60 per unit for standard-size items, with variation for oversize.
  • Disposal Fees: Differ according to item size, commencing at $0.15 per unit.
  • Service Fees: This encompasses the High-Volume Listing Fee, Refund Administration Fee, and Rental Book Service Fee.
  • Additional Fees: Keep an eye on the Overage Fee, Amazon Subscription Fees, and Labelling Fees.

Embarking on your Amazon journey into North American markets will benefit from a comprehensive understanding of these costs, enabling you to strategize effectively. Remember that these fees can change, so staying informed about the latest pricing details is pivotal.

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