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Being an Amazon Seller means giving away a share of your revenue in exchange for access to the vast consumer base that Amazon continues to cultivate. Amazon’s Marketplace Selling Fees are a small price to pay for the exposure that your business receives. Making up these selling fees are three main components: Variable Closing Fees, the $0.99 Per Item fee, and finally the Referral Fee.
Whether you run your Amazon business under the Professional or Individual Seller program, Amazon will collect referral fees from your sales. This fee is a percentage deducted from your total revenue. The percentage generally ranges anywhere from 10% to 20%, but can go as high as 45% for Amazon brand items. The percentages vary based on product category.
Before the item you sell is taxed, the total sales price includes the following: the item price, shipping charges, and gift wrapping (if applicable.) It is from these three elements of the sales price that Amazon bases its calculations for referral fees.
While profit is the number one goal of running an Amazon Seller Business, some fees are unavoidable. The referral fee can be thought of as part of the rent that you would otherwise be paying if you ran your own shop in real life!