Calculating Amazon Seller Fees - Seems A Lot!

7
Found 26th Mar 2016
So I just sold the following item:

Please dispatch this product using Standard delivery.

Item: In The Night Garden Ninky Nonk Musical Activity Train 78cms
Condition: New
Condition note: Brand New. Dispatched from within the U.K.
Listing ID: 032XXXXXXXXX
SKU: 9N-N4CZ-WBW5
Quantity: 1
Order date: 26/03/2016
Price: £29.00
Shipping: £5.13
Amazon fees: -£7.04
Your earnings: £27.09

--------

Amazon Fees of £7.04? I don't get how they worked that.

When I listed the item (albeit at £28.85, so a 15p difference), I received the following email:

Buyer's price: £28.85
Amazon commission (if sold): (Std UK Domestic) £5.85 Std UK Domestic credit (if sold): £5.13 Amazon commission (if sold): (Std UK Europe) £5.84 Std UK Europe credit (if sold): £5.10

---

The "fee" preview on the seller page lists £5.84 fees - although this is an "estimate".

I also used an external website fee calculator that estimated approximately £6 fees. Any ideas why £7.04 fees?
Community Updates
7 Comments
Have you aksed amazon. It does seem steep that.
bigweapon07

Have you aksed amazon. It does seem steep that.



I've just opened a case with Amazon (they don't do live chat for sellers ) - I don't see how they can get it wrong considering it should be a simple automated process to work out any fees....
It looks as though VAT has been added.
25% commission is utter rediculous. Stick to ebay jeez
bigweapon07

25% commission is utter rediculous. Stick to ebay jeez



Amazon have just got back to me. Thoroughly useless, just quoting their fees page, which I quoted in my opening message.

They charge me 75p per transaction and then 15% on total transaction.

Still confused!

This is part of their reply (Note toys have 15% commission unlike books that are 17.5%).:

Here is how it works:
------------------------------------------------------------
Price of the product
+Shipping
+Any other fees charged to the buyer
+ per item fee
- Referral fee
------------------------------------------------------------
= Total credited to seller's Seller Account

Here is an example of how an order for a BMVD Product will be displayed in your Payments report. This example is for a book priced at £10.00, with standard shipping to the UK and no other fees charged:

-------------------------------------------------------------
Product charges: £10.00
-Referral Fee: £1.73 (referral fee of 17.25%)
+per item fee £0.49
+Shipping: £2.75
-------------------------------------------------------------
Seller's Total: £10.53

Product Charges = Price of the product, plus other non-shipping amounts charged to the buyer
Amazon Fees = Referral Fee plus Variable Closing Fee
Your Proceeds = Product priceminus Amazon Fees plus Shipping




Edited by: "Firefly1" 27th Mar 2016
Bingstroller

It looks as though VAT has been added.



You were right! They just got back to me and apologised his colleague gave me incorrect information.

They charged me
15% referral fee on item price and then added 20% VAT
15% referral fee on shipping price and then added 20% VAT
75p fee for selling the item as well.

I take it they are right to do this?? I'm not a business or company, just selling a couple of bits every few months. Do eBay do this too?

Either way it's an extortionate amount of money


Edited by: "Firefly1" 28th Mar 2016
"They" as a business charge the VAT.

Its a personal bugbear of mine, as I feel businesses are not always transparent and some may even go out of their way to hide the fact it will be added. (Its great to advertise a price that does not include VAT). Misleading I call it.

Humax recently sent me an email stating a price for a freesat box. When I tried to buy at that price I was told - sorry thats the price before VAT which will be added to the final bill. I told them "Poke it"

In a way it is an additional profit stream due to the use of input/output accountancy.
Post a comment
Avatar
@
    Text

    Top Discussions

    Top Merchants