How to pay less Amazon fees?
Aug 8, 2023
As an Amazon seller, you know that fees can eat away at your profits. To maximize your profitability, it's crucial to understand the different types of Amazon fees and learn how to pay less. In this article, we'll share some tricks and hacks to help you reduce Amazon fees and increase your bottom line.
FBA Fulfilment Fees
FBA Fulfilment fees are charged by Amazon for storage, handling, and shipping of your products. Here are some tips to lower these fees:
Optimize your packaging/product dimensions: If you can reduce the size and weight of your products, you'll pay less for FBA storage and handling fees. Consider investing in smaller, more efficient packaging to save on costs.
Enroll ASINs in Small & Light: Amazon's Small & Light program is designed for products that are lightweight and inexpensive to ship. Enrolling in this program can significantly reduce your FBA fees.
Ask for refunds when Amazon wrongly charges you too high fees: Amazon makes mistakes, and sometimes they may charge you higher fees than necessary. Keep track of your fees and request a refund if you notice any errors.
AMZ Referral Fees
Amazon charges referral fees for every item sold on their platform. These fees are a percentage of the sale price and vary by category. To reduce referral fees, try these tricks:
Lower your price: By lowering your product's price, you'll increase sales velocity and reduce the commission base on which referral fees are calculated.
Sell products in categories with lower fees: Some categories have lower referral fees than the 15% baseline. Do your research and consider shifting your focus to categories with lower fees.
Make use of Amazon's programs: Amazon offers several programs to help sellers pay fewer fees. For example, if you're launching a new product, consider enrolling in Amazon's Launchpad program to get reduced referral fees for the first 90 days.
FBA Storage Fees
FBA storage fees are charged by Amazon for storing your products in their warehouses. Here's how to keep these fees in check:
Don't overstock: Overstocking your inventory can lead to higher storage fees. Instead, aim to keep your inventory levels in line with demand.
Use 3PL: Consider using a third-party logistics (3PL) provider to store and manage your inventory. This can be a cost-effective alternative to FBA storage.
Avoid long-term storage fees: FBA charges long-term storage fees for products that have been in their warehouses for more than 365 days. To avoid these fees, consider reducing prices or running promotions to move inventory before the deadline.
AMZ PPC
Amazon Pay-Per-Click (PPC) advertising is a powerful tool for driving sales, but it can also be costly. Here are some tips to keep your PPC costs in check:
Focus on high-converting keywords: Identify the keywords that are driving the most sales and focus your PPC campaigns on those terms. This will help you get the most bang for your buck.
Monitor your campaigns regularly: Keep a close eye on your PPC campaigns and adjust your bids and keywords as needed. Regularly optimising your campaigns can help you reduce costs and improve ROI.
Use negative keywords: Negative keywords are terms that you don't want your ads to show up for. By using negative keywords, you can avoid wasting money on irrelevant clicks.
By implementing these tricks and hacks, you can reduce your Amazon fees and increase your profitability. Remember, every penny counts, so don't overlook the importance of keeping your costs in check.
