FBA Costs & Fees to Expect (Free Amazon Course Video 3) Video Lecture | Start an Amazon FBA Store: Learn and Build - Home Business

what's going on guys welcome to the
third video please subscribe if you
haven't already so you know when these
free course videos are gonna be uploaded
on a daily basis so make sure you hit
that notification bell as well and give
this video a thumbs up if you find value
in it so in this video I'm just gonna go
over briefly the Amazon FBA fees you
couldn't expect to be paying if you're
starting your own private label product
and selling on Amazon FBA so great
getting straight into it here
the first fee that you're gonna be
paying in order to sell on Amazon it's
gonna be the the Amazon seller central
fee which if you're going with a
professional account the business
account you're gonna be paying $40 a
month if you do choose to go with the
individual account it's completely free
but it's 99 cents per transaction
and once you get to 40 transactions you
do have to switch over to the
professional seller account so I'd be
doing 40 more than 40 transactional
transactions a month you're gonna be
paying the $40 fee and it's capped off
at $40 so on a monthly basis so be
paying out $40 if you're planning to do
a private-label products you are gonna
be needing to take advantage of that
seller account or that professional
account otherwise you're not going to be
able to sell in the volume that you're
gonna need to in order to really make
good money on Amazon next going into the
product fees when you're selling on
Amazon you're gonna be facing the
referral fee close closing fee depending
on your product and the FBA fee and
storage fees so the referral fee is
something that every transaction will
get charged varying from 8 to 15 percent
depending on your product so I'll leave
a link in the description where you guys
can see the different fees depending on
your product also depends on your size
as well the closing pays something
you're gonna be having to pay if you're
selling media products like DVDs or
audio things like that and that can
range from 1 to 2 dollars but in most
cases you're not gonna have to pay that
then you have the FBA fee so this counts
for the picking and packing so when
Amazon actually receives your product of
course they organize it in their
warehouse so they're charging you a bit
of a fee there and then when someone
orders it of course they find your
product in the warehouse pick it put
them there Amazon
and ship it so that's the FBA fee and
that's gonna vary depending on the size
and weight of your product and the
storage piece of this varies as well
this depending on the size and weight of
your product I'll pull up on the screen
here the general costs that your guys
that you guys are gonna be paying so if
you went on to the Amazon website you
can see the fulfillment by Amazon fees
so here you can see the fulfillment fees
and there's a bunch of different options
depending on the weight and the size of
the products that you guys can read
about as well as the monthly inventory
storage fees so that's their and they
also have more expensive fees during the
peak holiday seasons in October to
December but the fees aren't too much I
mean the biggest fees are gonna be at
your Amazon referral fee which is eight
to fifteen percent depending on the
product that you're selling per
transaction but that's the cost of doing
business with Amazon and benefiting from
using their Amazon service just moving
on now so you see those are the direct
Amazon costs a year that are mandatory
you're gonna need to pay them if you're
selling with Amazon FBA but there are a
lot of benefits to them Amazon will
handle your returns as you know they
ship your inventory and they'll they'll
manage everything in the warehouse for
you so the Nexxus message that you can
expect to pay that are not direct
mandatory Amazon fees are the software
tools like jungle Scout so you have the
jungle Scout web app which is $40 a
month I'll go into that more in the
jungle scout video later in this series
then you have that jungles called Chrome
extension which is $97 it's a one-time
fee and there are cheaper alternatives
both of these programs but jungle
scarves by far the best and it's the
most popular from what I've seen and
among most of the FBA community online
all social media jungle Scout seems to
be the favorite and is the most user
friendly then you'll have to buy a UPC
for you see identifier number in order
to register your product and create your
listing so this if you want to go to the
official gs1 barcodes cost for anywhere
from around $250 for up to 10 bar codes
so from 1 to 10 is $250 or you can go
with a bar code
where they can cost as low as $5 but I
will be covering everything to do with
barcodes and creating a listing later on
in a future video so stay tuned for that
so you guys have a better understanding
of where the risk is and which is the
best for you
lastly of course there's your inventory
and shipping so this is gonna vary
greatly depending on how many you want
to order what product you're ordering
but I'll give you guys the general idea
to start with your starting order with
Amazon fees and your inventory I'd say
anything around $1,250 is a good number
that's just my preference anything over
a thousand people have done it you can
go anywhere up to like five thousand if
you really want to for your first order
by saying just to be safe 1250 is a safe
number where you can get a good batch of
inventory and actually get things
rolling just to test your test the
waters that make sure that Amazon is for
you so those are the main costs that you
can expect when starting with Amazon in
future videos I'll be elaborating more
on each of these fees and how they can
affect your business but I'll just show
you guys quickly now also back in the
computer where you can actually
calculate the Amazon fees that you can
expect so like I showed you guys you can
see here the stories in the FB if he's
based on the size and weight if you want
to it for an exact product you can just
Google Amazon
boomba Amazon revenue calculator and
I'll link this in the description as
well but basically it will allow you to
find your product on Amazon so there's
different ways you can find it you can
just search by the product name I
believe here I'm searching by the Aysen
so the Aysen I'm just gonna show you
guys an example here I just searched for
marshmallow sticks and I'm going to use
this product here as my demo so you can
see I have the 40 piece selected the
Aysen is up here in the in the search
bar or in the web browser bar sorry and
you can choose to select this so this
right after the name usually starting
with a B is the Aysen so just that one
two three four five six ten digit number
of mix and letters of numbers and you
just copy that and bring it back into
you
or fee calculator press search and
Amazon will give you the give you the
option to see the product so you know
there was two variations and not listing
so this look the right one and you can
just go to the bottom here and calculate
it and it actually calculates the fees
for you so you can see the amazon
selling fee you can see the fulfillment
by amazon fees and this will give you an
idea of how much it's actually gonna
cost you to sell this product so what
how much money you're making on the
product and it's worth it to go into
this market another way that i like to
calculate my amazon fees now is by using
this so this is a 100% free chrome
extension doesn't cost you anything you
don't have to provide any information
about yourself you can just search a
fiat calculator for amazon on Google and
this Chrome extension will come up but
it's just basically a Chrome extension
so if you're on the listing you can hit
this little button up here looks like
that and just click it and it'll give
you the full cost of the item gives you
the product size that the sellers
already and put it on their listing and
calculates all the fees and then you can
see here it tells you based on this
seller exactly how many sales they make
a month it calculates your estimated
profit so I really like this Chrome
extension it saves you a lot of time
from having to actually go in to Amazon
and input the information yourself but
that's just one way if you were thinking
of selling a similar product to this
then you could calculate your Amazon
fees of course by using the Amazon
revenue calculator as well if you had
different product dimensions and you
knew how your shipping was gonna what
your shipment was gonna look like
per piece you could calculate that
information here just by inputting it
manually as well so that's the fees that
you can look look out for when starting
with Amazon and I know what to expect
starting up and how much
you