8 Ways to Save Money on Amazon Seller Costs

Amazon Seller Costs

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We all know the fees for selling on Amazon are not cheap. So, it’s very necessary for you to save money on Amazon seller costs, but how?

Get a Professional Seller Account

If you’re serious about selling on Amazon, it’s better to sign up for the Professional Seller account at $39.99 per month than the free Individual membership. Since it comes with unlimited listings and extra features to help you sell more on the platform, it will save you more money in the long term.

Click here to know How Much Do You Need To Start An Amazon Business?

Choose the Right Product Category

Choosing a category for your product will play a big role in how much you’ll be paying in referral fees.

For example, let’s say that you’re selling necklaces on Amazon. If you choose the ‘Jewelry’ product category, you’ll be paying around 20% in referral fees. However, if you opt for the ‘Apparel Accessories’, you’ll be paying 17% instead.

Estimate the Right Product Size

Shipping heavy items on Amazon can is very expensive. It’s why you need to estimate your product size every time correctly because Amazon doesn’t pay for the wrong size of your product so always double-check that you correctly measure the dimensions to avoid paying more for mass that doesn’t exist.

Partner Up With a 3PL

Handling shipping manually yourself can be a time-consuming process. One of the best things you can do is outsource your Amazon shipping to a Third-Party Logistics Provider, which will manage your inventory for you. A 3PL can save you money in the long run by reducing shipping carrier costs for you.

Keep Track of Any Abandoned Inventory

If you’re on Amazon’s FBA program and leave your inventory stranded for far too long, you’ll start getting hit with additional warehousing fees. On top of that, it could also cause you to lose storage space for more products.

Make sure to take a look at your inventory each quarter to ensure that none of your products are stranded for too long. If an item doesn’t sell within six months, be sure to take it out of your warehouse.

Invest in Free Packaging Material

Recycle boxes you already have instead of buying new ones. It’s a good way to cut your costs on Amazon. Not only is it going to save you money from buying new material each time, but it’s also better for mother nature.

Sell Your Amazon Products in Bundles

You may have noticed that customers may like to buy complementary items to one of your orders. But the problem is that Amazon applies referral and shipping fees for each order. You can try to bundle multiple products in one, in that case, Amazon only charges you once for one customer purchase.

You may have to pay slightly more in referral and shipping fees due to the size, but it may be less expensive than the combined fees from separate orders. The most important is that product bundles can improve the customer experience by simplifying their purchase decision and help increase your product sales.

Negotiate With Your Carriers

If you’re frequently doing business with a carrier (such as FedEx or UPS), you should consider negotiating with them to get the best prices on shipping. For example, ask your carrier if they have any discounts for certain order volumes.

There are actually a lot more ways to minimize the costs. But I don’t want to overwhelm you with too much information, so I just want to keep it simple, keep it to my top 8, but if you would ever like to discuss it in more detail, feel free to contact us.

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