How Much Does It Cost to Sell on Amazon UK?

How Much Does It Cost to Sell on Amazon UK? The cost of Amazon selling fees UK depends on your Amazon selling plan, product category, fulfilment model, and other variables. Amazon provides you with flexible options so that you can find the right combination that works best for you and your business goals.

In this blog post, we will be examining the different costs and fees that you pay to sell on Amazon UK. The general categories of Amazon selling fees UK include selling plans, referral fees, fulfilment fees, and miscellaneous costs.

Now, if there are Amazon selling fees UK, you must be wondering why so many people have started businesses on the platform. Well, one major reason is that as a new seller on Amazon, you stand to gain over £40,000 in potential benefits. Amazon invests in the success of new brands on the platform by giving you a 5% bonus on over £800,000 in eligible branded sales when you complete your Amazon Brand Registry!

That is up to £40,000 in bonus value when you register your brand newly on Amazon! Amazon also provides you with the perfect formula to skyrocket your business’ success within its first 90 days on the platform. All in all, several incentives come with starting a business or brand on Amazon.

Selling Plans.

Amazon offers 2 selling plans with which you can either opt to pay per sale or stick to a flat monthly fee.

1. The Individual Plan.

This plan costs £0.75 (excl. VAT) per unit sold.

This plan will be right for you if you sell fewer than 35 items in a month, you are still deciding what products to sell, and you do not plan to advertise or use advanced selling tools.

The Individual selling plan only provides access to Amazon features such as adding new products to your Amazon catalogue and growing your business with FBA.

2. The Professional Plan.

This plan costs £25 (excl. VAT) per month no matter how many units you sell.

This plan will be perfect for you if you sell more than 35 items in a month, you want to advertise your products, wish to qualify for top placement on product detail pages, want to use advanced selling tools such as APIs and reports, and you want to sell products in restricted categories.

When you pay Amazon Professional Seller fees UK, Amazon allows you to:

• Add new products to the Amazon catalogue;
• Grow your business with Fulfilment by Amazon;
• Apply to sell in additional categories;
• Save time creating listings in bulk;
• Manage inventory with feeds, spreadsheets, and reports;
• Qualify for top placement on product detail pages;
• Increase selling efficiency with API integration;
• Set your own shipping fees for non-media products (media products include books, music, video, and DVD);
• Attract shoppers with on-site advertising tools;
• Run promotions including free shipping; and
• Add multiple users to your account.

Whichever plan you pick, you can change or cancel your plan at any time.

Referral Fees.

Amazon charges sellers a referral fee for each item sold. This referral fee is essentially a percentage of the total price—including item price, shipping cost, and any gift-wrapping charges—or a minimum amount, whichever is greater. Referral fees are deducted in addition to selling plan fees.

The referral fee amount depends on the product category. Most referral fees are between 8% and 15% which Amazon deducts as applicable.

Fulfilment Fees.

Fulfilment fees depend on whether you plan to ship products yourself (FBM), or use Fulfilment by Amazon (FBA) to handle your logistics and offer Prime shipping for your products.

1. Fulfilment by Amazon (FBA).

With FBA, you only pay for the services you use. There are no subscription fees, contracts or minimum inventory requirements. Amazon allows you to ship your products to their fulfilment centres and pay for fulfilment services and storage space used.

The fulfilment fees are a flat rate per item based on the product type, dimension, and weight. The storage fees are charged per cubic foot per month.

2. Fulfilment by Merchant (FBM).

When you fulfil orders yourself, Amazon charges shipping rates based on the product category and shipping service selected by the customer, and then passes the amount on to you in the form of a shipping credit.

If you pay for the Professional selling plan, Amazon allows you to set your own shipping rates (except for media products). But if you pay for the Individual selling plan, you must use Amazon’s set shipping rates for all products.

Note: As mentioned earlier, shipping costs will always be factored in when your referral fees are calculated and deducted, regardless of which selling plan you sign up for.

Miscellaneous Costs.

As a seller on Amazon, you may incur additional fees. The most common ones are:

1. Additional inventory fees.

If you store inventory in an Amazon fulfilment centre, in addition to monthly inventory storage fees, you may incur other fees, such as long-term storage fees, overage fees, and removal order fees. Note that this storage option is only available to selling partners who use FBA or Multi-Channel Fulfilment.

2. High-volume listing fees.

The High Volume Listing Fee will only apply if you exceed 2 million SKUs (stock keeping units) in a given month, and it will be applied to your highest number of SKUs above 2 million at any time during that month. For each active, non-media SKU over 2 million, a fee of £0.0003 per SKU will be charged.

3. Refund administration fee.

If you refund a customer for an order for which you have already received payment, Amazon will refund you the amount of the referral fee you paid for the item(s), minus the applicable Refund Administration Fee, which is the lesser of £5.00 or 20% of the applicable referral fee.

For example, if you refund a customer the GBP 10.00 total sales price of an item in a category with a 15% referral fee, your Refund Administration Fee will be £0.30 (£10.00 x 15% referral fee = £1.50).

Getting paid vs. Paying fees.

When you set up a seller account, you will provide Amazon with both a credit card number and a bank account. Amazon will deposit the proceeds from any sales into your bank account, while your credit card will be charged for any Amazon selling fees UK that you incur.