Amazon Business Margins and Profitability
When it comes to selling on Amazon, the sales numbers vary. Sellers could bring in $0 a month, $1,000 a month, or even more.
On average, most Amazon sellers bring in at least $1,000 per month in sales – where on the other end some super-sellers make up to $250,000 a month
Keep in mind the costs of selling on Amazon. When products are sold, Amazon takes a cut of the price for the seller’s ability to use their marketplace.
Fees will depend on the type of Amazon seller accounts selected. The main fees and account types are the following:
Monthly Subscription Fee
- Professional Selling Plan: $39.99 per month; no per-item fee
- Individual Selling Plan: No subscription fee; charged $1 per item sold on Amazon
Depending on whether your FBA (Fulfilled by Amazon) or FBM (Fulfilled by Merchant) there may be shipping and other fees.
FBA sellers – This comes with another set of fees to store, pack, and ship, fulfillment, storage, and optional services, products from the Amazon warehouse.
FBM sellers – This is used when sellers want to leverage their own logistics infrastructure. This lessens the fees to Amazon will miss out on FBA advantages.
Referral Fees – sellers pay a Referral Fee on each item sold, which is a percentage of the product’s price. Referral Fees vary by category – as listed on Amazon’s site.
Depending on your product and type of account, there are other costs that you may incur.
Amazon sellers are also accountable for any tax liabilities for their business. Sellers should be aware of all the tax rules. Confused about sales taxes? See my post on state sales tax for e-commerce sellers here.