In order to accurately calculate and track your costs and profits on Amazon, you must be aware of the various fees associated with each transaction.
The Amazon referral fee, which is charged on each and every purchase, is a significant consideration. But what does this really mean?
Amazon charges a commission for each thing you sell on their website, and this is what we mean by a referral fee. In most cases, this cost amounts to around 15% of the final transaction price.
Keep in mind that this proportion might vary based on the type of goods you’re looking to purchase. Amazon Device Accessories can have a discount of up to 45 percent, while personal computers can have a discount of 8 percent.
The Amazon referral fee will be explained in full in this tutorial, including how the charge is calculated, who is responsible for paying it, and what happens when a discount code is used. Besides that, we’ll try to answer some common queries on the subject.
Is Amazon right to charge a referral fee for promoting its products?
The minimum referral fee isn’t specified.
Amazon will charge you a minimum referral fee of $0.30 if the final price of the goods you’re selling is less than $0.30.
Consider the $1.40 price tag on a soccer card from your collection. Amazon’s policy requires you to pay a minimum referral charge of $0.30, despite the fact that the usual referral price is only $0.21.
In addition, Amazon charges a minimum referral fee of $0.30 each product, regardless of the category in which it belongs.
To What Extent Do You Apply Discount and Claim Codes?
As a result, the Amazon referral fee is calculated on a percentage of the sale price rather than the entire price if you’re offering a discount to customers who use the “claim code” at checkout to get a lower price.
Suppose you’re selling a brand-new hairbrush for $30, and you’d like to describe this in more detail. In most cases, you’d be compensated with a 15% commission on the sale ($30). But if you give your consumers a 50% discount, they may pay $15 for the hairbrush by entering a claim code at the checkout.
Consequently, you’ll only have to pay a referral fee of $2.25 – 15% of the $15 transaction price.