Amazon E-Commerce for Beginners: Step-by-Step Guide and Required Fees

Getting Started With Amazon Seller Accounts

New sellers must first choose between two Amazon seller plans:

• Individual Plan: Free to open, but costs $0.99 per product sold
• Professional Plan: $39.99 monthly fee with unlimited sales

The Individual plan works best for sellers testing with fewer than 40 monthly sales. Most serious businesses upgrade to the Professional plan for bulk listing tools and brand customization features. Amazon charges referral fees (8%-15% per sale) on both plans based on your product category. [1]

Inventory Storage Costs Explained

Amazon charges monthly inventory storage fees based on:

• Product size (standard vs. oversized items)
• Storage duration (6-month+ inventory incurs higher rates)
• Seasonal demand (prices increase during holiday peaks)

Example: Storing 100 small books costs $24/month, while 50 TVs might cost $85. Sellers get charged long-term storage fees every February and August for items stored over 365 days. [2]

Fulfillment by Amazon (FBA) Fees Breakdown

Amazon’s FBA service handles shipping/customer service for:

• Picking/packing: $1.00-$4.00 per order
• Weight handling: $0.75-$3.00 per pound
• Returns processing: $5.00-$10.00 per item

Most sellers pay $2.50-$8.50 total FBA fees per medium-sized item. Pro tip: Use Amazon’s Revenue Calculator to estimate fees before listing products. [3]

Hidden Costs New Sellers Often Miss

Watch for these less obvious Amazon seller expenses:

• Product photography ($15-$50 per image)
• PPC advertising ($0.80-$2.00 per click)
• Brand registry ($500+ for trademarks)
• Inventory removal fees ($0.15-$0.30 per item)

Many sellers budget an extra $500-$1,000 for these startup costs. Amazon also charges $1.80 closing fees on media products like books/DVDs. [4]

Do You Need Upfront Payments?

Amazon doesn’t require deposits, but new seller quotas apply:

• Must sell 20+ items in first 90 days
• Maintain <1% order defect rate
• Process shipments within 2 business days

Failure to meet these metrics can temporarily limit your selling privileges. Some international markets require $100+ deposits, but the U.S. store doesn’t. [5]