Small businesses and entrepreneurs alike love that they can sell their products on Amazon’s e-commerce platform. That said, Amazon offers several benefits for third-party sellers looking to make more sales, including useful statistics and promotional services.
If you are a seller on Amazon, you might have heard about something called Amazon seller repay and asked, what is this? Do all sellers have these charges? I asked the same questions, so I looked into it! Here’s everything I discovered!
What Is Amazon Seller Repay In 2023?
Amazon seller repay charges that cover the monthly service fees and charges that each Amazon seller has connected to their account as of 2023. Amazon seller repay charges vary depending on if you operate an Individual or Professional Seller Account. The highest an Amazon seller repay charge will be $39.99 a month.
If you want to learn more about Amazon seller repay charges, the other type of charges Amazon sellers have to pay, and much more, keep reading! I’ve looked into everything you need to know!
What Is Amazon Seller Repay?
Amazon seller repay are charges that cover the monthly service charges and fees connected to a seller’s specific account.
With that, even if you are not actively selling products on Amazon’s platform, you are still responsible for paying certain fees for simply having an account.
Additionally, Amazon seller repay charges occur every month regardless of how much you sell if you operate a Professional Seller Account.
How Much Are Amazon Seller Repay Charges?
Typically, the Amazon seller repay charge is $39.99 each month.
With that, if you have a Professional Seller Account on Amazon, you are charged $39.99 a month regardless of your sales.
Further, this charge shows up as a “seller repayment” fee on your credit card statement.
Also, if you own an Individual Seller Account, your seller repay charge will most likely be less than $39.99 and instead depends on your monthly sales.
What Types Of Fees Do Amazon Sellers Pay?
One of the downsides of selling products on Amazon’s platform is that you have to pay a lot of fees.
That said, here are some of the most common fees attached to selling products on Amazon.
When Amazon sellers offer media products, they have to pay a closing fee totaling $1.80. With that, this fee is added to the other expenses a seller has.
Further, some of the examples of media products according to Amazon include:
- Video game consoles
- Computer games
- Video games
- Video game accessories
Moreover, keep in mind that you may have to pay closing fees for other sales on Amazon too, which will be indicated in your earnings statement.
Every item you sell on Amazon comes with referral fees, which depend on the product category.
However, most products have a 15% referral fee unless you sell products in the following categories:
- 3D printed products
- Video games consoles
- Unlocked cell phones
- Personal computers
- Other consumer electronics
- Amazon Explore
- Amazon device accessories
- Gift cards
High-Volume Listing Fee
If you sell a lot of products on Amazon, you will be subject to a high-volume listing fee.
Typically, this fee occurs once you sell over 100,000 products, with each incurring a $0.005 fee for every item sold.
Although most Amazon sellers do not have to worry about this fee, it’s important to keep it in mind.
Fulfillment By Amazon Fee
Fulfillment by Amazon (FBA) is a program that allows sellers to send their items to an Amazon warehouse.
Then, Amazon takes care of all the shipping, packing, and stocking of said seller’s orders.
As you can imagine, this makes selling much simpler for small businesses that observe a lot of sales. Additionally, FBA helps sellers save some money on shipping and warehouse space.
That said, it allows sellers to focus more on other aspects of their business, like marketing, creative direction, and upcoming products.
What Different Types Of Seller Accounts Are There?
The two types of seller accounts on Amazon include Individual and Professional Seller Accounts.
With that, the type of account that’s best for you depends on the number of sales you are expecting per month.
Individual Seller Accounts
Individual Seller Accounts do not pay as much in seller repay fees. For example, these sellers incur a $0.99 fee for every item they sell, along with other closing fees.
According to Amazon, this account is best for anyone selling less than 40 items each month.
Professional Seller Accounts
Professional Seller Accounts pay a flat fee of $39.99 a month for seller repay fees. Therefore, these accounts are not subject to the $0.99 fee like Individual Seller Accounts.
Also, Professional Seller Accounts are best for people expecting to sell over 40 items a month. Moreover, you can change the type of seller account you have if your sales suddenly spike.
Amazon seller repay charges occur every month; however, people with Professional Seller Accounts will pay as much as $39.99 a month.
So, if you have an Individual Seller Account, you will not pay as much in seller repay charges. Also, Amazon seller repay charges are one of many fees Amazon sellers must pay.