Amazon Selling Terms, Definitions, and Selling Fee Breakdown
This guide provides in-depth definitions for common Amazon terms and an overview of the selling fee structure. Note that fees are outlined here in general terms; you should always use SellerAmp (SAS) to calculate precise fee breakdowns for specific ASINs rather than attempting manual calculations.
Key Amazon Terminology
Amazon Fulfillment: The service provided by Amazon allowing sellers to store products in Amazon warehouses for direct shipment to customers.Fulfillment by Amazon (FBA): A program within Amazon Fulfillment that leverages Amazon's logistics network to handle picking, packing, shipping, and customer service.Product Listing: The specific page for a product on Amazon that includes the title, description, price, and images.ASIN: Acronym for Amazon Standard Identification Number. This is a unique identifier assigned by Amazon to every product listed on the platform.Inventory: The total amount of a specific product a seller has available for sale.Inventory Management: The process of tracking stock levels to ensure enough inventory is on hand to meet customer demand.Fulfillment Fee: The per-unit fee Amazon charges to pick, pack, and ship a product to a customer.Storage Fee: The monthly fee Amazon charges for storing a seller's products in their warehouse facilities.Buy Box: The section on a listing where customers can "Add to Cart." It is typically awarded to sellers based on a combination of competitive pricing and high customer ratings.Multi-Channel Fulfillment (MCF): An FBA feature allowing sellers to fulfill orders from non-Amazon channels (like a personal website) using Amazon’s logistics.BSR: Stands for Best Sellers Rank. This numerical ranking reflects a product's popularity within its category based on recent sales.A lower number (e.g., 1) indicates higher popularity.
BSR is updated hourly and can vary significantly between different categories.
Sourcing Methods
Sourcing is the process of acquiring products to resell. The best method depends on your capital, time, and the level of competition you are willing to face.
Wholesale: Buying in bulk directly from a brand or authorized distributor.Online Arbitrage (OA): Purchasing discounted products from online retail websites to resell on Amazon.Retail Arbitrage (RA): Sourcing discounted products from physical retail stores.Private Label: Manufacturing your own brand of products, often through overseas suppliers like Alibaba.Liquidation: Buying overstock or returned items from retailers at a steep discount.Dropshipping: A supplier ships products directly to your customer on your behalf (Note: This is high-risk on Amazon and must follow strict policy guidelines).
Prep Centers
An Amazon FBA Prep Center is a third-party facility that receives, inspects, and prepares your inventory to meet Amazon’s strict FBA requirements.
Services: They handle packaging, labeling, barcoding, and shipping plan consolidation.
Advanced Needs: Many offer kitting, bundling, and return management.
Benefit: Utilizing a prep center saves time and ensures your products are shipped correctly, reducing the risk of warehouse rejections.
Amazon Selling Fee Breakdown
Fees vary based on your account type, product category, and sales volume.
Fee Type
Description
Cost Range
Referral Fee
A percentage of the total sale price charged on every sale.
6% to 45%
Fulfillment Fee
Covers picking, packing, and shipping to the customer.
$2.41 to $137.32+
Monthly Subscription
Required for Professional Seller accounts.
$39.99 / month
Variable Closing Fee
Specifically for media items (Books, DVDs, CDs).
$1.80 per item
Long-Term Storage
Charged for items stored in FBA for over 365 days.
$6.90 to $137.32+
High-Volume Listing
For sellers listing over 1 million items per month.
$0.005 to $0.01 per item
Note on Fee Increases: Unexpected upticks in fees often result from poor selling practices, high order defect rates, or unrecorded storage overages. Running an FBA-focused business typically reduces these risks, as Amazon assumes responsibility for most fulfillment-related errors.
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