Updated Amazon Seller Fees February 18, 2020

A lot has changed for Amazon in 2019. More warehouses, new delivery services, and one-day delivery are just three of those exciting changes. Starting on February 18, 2020, Amazon is changing its fee structure for Amazon sellers as well.

Read our handy summary of these fee changes and about the new and exciting FBA New Selection program!

Referral Fees

  • Shoes, Handbags, and Sunglasses fee drops from 18% to 15% for items with a total sales price above $75.00
  • Outdoor furniture fee drops from 15% to 10% for any portion of sales above $200
  • Personal care appliances to be consolidated into Health & Personal Care category, dropping the fee from 15% to 8% for items with a total sales price of $10 or less
  • Activewear will be charged the same fees as Clothing & Accessories at 17%
  • Ring accessories to be consolidated into the Amazon Device Accessories category and charged a fee of 45%
  • Amazon Business to have one referral fee rate per category, so items above $1,000 will have the same rate as items less than $1,000

Fulfillment Fees

Core fulfillment fees are going to be increased by an average of 3-4% across the board.

Screenshot of new fees for Amazon FBA starting on February 18, 2020

Other changes to fulfillment fees are below:

  • Clothing will no longer have the $0.40 per unit charge
  • Small & light fee will now have a single per-unit fee by weight instead of separate order handling, pick and pack, and weight fees
  • FBA Label Service for Small and Light items will be $0.10 per unit
  • No long-term storage fees for small and light items in fulfillment centers for 181-365 days
  • Small and Light will now have the same standard long-term FBA storage fees (more than 365 days), so $0.15 per unit instead of $0.50 per unit
  • Small and LIght will have the same standard FBA disposal and removal fees

Introducing FBA New Selection

New to FBA for 2020 is the FBA New Selection program. This program allows sellers to enroll new-to-Amazon ASINs for fee reductions and other benefits.

Sellers must opt-in before they’re qualified to take advantage of this new program.

Benefits sellers will receive from this program:

  • Fee waivers for up to 500 new-to-Amazon ASINs
  • Free monthly storage for the first 50 units of each parent ASIN in the 90 days after the first unit is received at the fulfillment center
  • Free removals of the first 50 units within 180 days
  • Free returns processing for five product categories in bold below
    • Apparel; Shoes, Handbags, & Accessories; Jewelry; Luggage; and Watches will have their returns processing fees waived for the first 50 units of each parent ASIN
    • Returned items must be received within 120 days from when the inventory was first received
  • $100 inbound transportation discount for new FBA sellers through the Amazon Partnered Carrier program

Who is eligible?

  • Sellers with an Inventory Performance Index (IPI) score of 400 or higher
  • Sellers who have no storage limit

What is eligible?

  • Small standard and large standard-sized items are eligible
  • Parent ASINs must be new to Amazon
  • ASINs in media not eligible
  • Used items not eligible

Other information about FBA New Selection

  • Begins April 1, 2020
  • Only first 50 units of each eligible ASIN qualify for fee waivers
  • Only the first 500 new-to-Amazon ASINs qualify for the fee wavers, but this limit is reset every year on April 1
  • Available only to Professional sellers

Fee increases aren’t really surprising to veteran Amazon sellers who are accustomed to annual, and sometimes semi-annual, changes to Amazon’s fee structure.

The biggest benefit will be to sellers who are participating in the Small & Light program, which has been drastically simplified with consolidated and reduced fees.

Amazon’s FBA New Selection program also looks interesting, as it encourages sellers to continue to introduce new products, which will be great for Amazon and customers.

Be prepared for these changes to Amazon’s fee structure starting on February 18, 2020!

Amazon to QuickBooks Online Accounting: Creating Proper Invoices

Learn how to create accurate and proper QuickBooks Online invoices for your Amazon sales transactions.

Look through our comprehensive guide for creating proper documents in QuickBooks Online so that you can use your bookkeeping to track inventory, sales, and other important information.

For this article, we’ll go over using one sales document that includes income and expenses.

The most important step is to create all the proper service items in QuickBooks Online. But before we can create the service items, we’ll need to create the proper accounts in QuickBooks Online.

You’ll need to create a new account to map for each service item. Let’s take a look at a sample Amazon invoice:

Amazon Invoice

This is an example of an order you’ll see on your Amazon account.

To properly create the QuickBooks Online document for this Amazon sale, we’ll have to create the service items to use as line items for the QuickBooks Online invoice. But first, we’ll have to create the account that links to the service item.

Look through our step-by-step guide for creating proper QuickBooks Online invoices for your Amazon sales transactions! Those who separate their income and expenses go through a similar process.

Creating the accounts in QuickBooks Online Chart of Accounts

We’ll want to track certain fees since they’re common. So we’ll create two accounts that are named Amazon FBA Pick & Pack Fees and Amazon Referral Fees.

You may want to name them with the marketplace and region in front if you sell on multiple marketplaces and want to separate the fees by marketplaces. So you may have Amazon US FBA Pick & Pack Fees, Amazon MX FBA Pick & Pack Fees, and Amazon CA FBA Pick & Pack Fees.

If you separate the fees in this way, you’ll have to create separate accounts for all of your service items.

Others just lump all the marketplace FBA Pick & Pack fees into one account: Amazon FBA Pick & Pack Fees.

QuickBooks Online Accounting link

Chart of Accounts New

Adding New Account in QBO

Once you’ve created these accounts, we’ll need to create the service items and link those to the accounts we’ve just created. The Account Type is important. FBA fees are expenses, so choose Expenses. For the Detail Type, you’ll want to select the type that best fits.

For this particular FBA Pick & Pack Fees account, we’ll use Other Miscellaneous Service Cost. You may be able to use this Detail Type for most Amazon-related expenses. Or choose the Detail Type that best describes the account.

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Creating the Service item linked to Accounts in QuickBooks Online

QBO New Service Item

Setting up Service item

Create the service items necessary for all the Amazon expenses. Make sure you link the proper accounts when you create the service items.

Once you have the service items, we can create the QuickBooks Online invoice.

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Creating QuickBooks Online Invoices

Create Invoice

Sample QBO Invoice

 

Check out our guide on Default customers.

If you’re FBM, you’ll need to click on “Receive payment” once you’ve shipped the order on Amazon. If you’re FBA, you can click on Receive payment right away.

QBO Receive Payment Button

QBO Receive payment account

Once you’ve clicked on Receive payment into your Amazon Undeposited Funds account, you’re done with creating the QuickBooks Online invoice for your Amazon sales order.

When done properly, you can run reports to see your overall income and expenses. Below a sample Profit and Loss report after we’ve completed the invoice. This report shows us that we’ve sold an item for $46.99. Our cost for the product (Cost of Goods Sold) was $10. Our fees for the product were $10.04. Overall, we’ve earned $26.95.

As you enter the settlement income and expenses and your other orders, you’ll get a much more detailed view of your business.

 

Sample Profit and Loss QBO

You’ll need to create all the proper service items along with linking them to the correct income and expense accounts in your Chart of Accounts.

For income and expenses that you don’t necessarily need to track because they’re rare, you can use a general Income and Expense account. For example, you can create service items called “Amazon Other Income” and “Amazon Other Expense” and link those to the accounts. Then use those accounts for the income and fees that don’t need to be categorized.

You should track the most common income and expenses. This gives you more detailed insight into your business. Lumping them all into one account makes tracking difficult, and the reporting won’t give you details you can use.

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Contra revenue accounts

Not all negative amounts from Amazon orders are considered expenses. Some of those, like sales discounts, are considered contra revenue accounts and should be debits to income accounts rather than credits. When you add these sales and sales discounts accounts together, you’ll get the net sales income.

For example, you have a product that sells for $100. For one week, you have a sale with $10 off. That $10 isn’t really an expense, so crediting $10 to an expense account isn’t correct.

Instead, that $10 is a reduction from the sale, so it should be a debit to an income account.

Here’s how the report should look with the contra account properly configured and a $10 discount on a $100 item. Some sellers will mistakenly record the $10 discount as an expense.

Profit and Loss with Contra account

Partial refunds or Goodwill discounts that occur after the sales transaction should be treated as expenses. You shouldn’t go back to the invoice to edit it, nor should you issue a Refund Receipt for a partial refund. Remember, any refund receipt will increase your inventory.

For the most part, Amazon will reimburse you for any discounts or promotions it gives to customers. So you’ll see the discount on the invoice along with a credit for the same amount.

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Learn more about other bookkeeping topics through our articles on accounting for Amazon businesses:

15 Product Research Tools to Identify Opportunities on Amazon

Check out these product research tools that thousands of people use to identify product opportunities on Amazon. Take the guesswork out of what to sell on Amazon, and use the data gathered by these tools to make better, more informed decisions about what you should sell on Amazon and how much you’d make.

If you like these product research tools, then check out our massive list of Amazon apps, tools, and services to optimize and maximize your Amazon business!

The list will include features each tool offers, as well as any other notable points about the tool.

Once you find your product or niche, check out our article on these online B2B marketplaces like Alibaba to source your products! Or read our article on sourcing products.

Most of the product research tools will give you estimates, but these estimates can vary wildly amongst the tools. Don’t just take their word for it that a particular item will bring in that revenue. Do your research, and keep in mind that thousands of other people are using the same tools for research. Also keep in mind that the lead time for sourcing can be a few months or longer, so you may have competitors by the time your product lands.

We’ll list only the features that are relevant to product research. Many of these services and tools offer additional features as well.

SellerZen is not affiliated with any of these services, nor does SellerZen endorse any of these services. We’ve created this list only for informational purposes, so do your own due diligence before you sign up with any services listed in this article.

AMAchete

AMAchete home

  • Free 10-day trial
  • Chrome extension
  • See number of reviews, average review, date of listing, rank, and price at a glance
  • Profitability estimator
  • Product database

AMZInsight

AMZInsight Home

  • Free trial (unspecified time) for any of the subscription plans
  • Niche analyzer
    • Shows top products and categories
    • Top buybox winners
    • Product popularity
  • Product tracker
    • Best Sellers Rank (BSR) tracking
    • Product tracking
      • Estimated sales
      • Estimated revenue
    • Amazon keyword monitoring

AMZScout

AMZScout page

  • Free 7-day trial
  • Track sales history of products
    • Includes seasonal trends
  • Chrome extension
  • Sales estimates
  • Sales rank
  • Historical data
  • Revenue estimates
  • Profit calculator
  • Product database

AMZShark

AMZShark home

  • The first month is free and then $299 per month thereafter
  • Sales tracker
    • Price history
    • Sales rank
  • Niche scout

ASINspector

ASINspector home

  • No free trial, but a one-time fee of $97 for the standard version or $147 for the pro version with a $10 monthly fee.
  • Best Sellers Ranking (BSR)
  • Mobile scan
  • Revenue estimator
  • Research niche
  • Idea generator (automatic keyword, product, and niche research)

AZanalyzer

AZanalyzer Home

  • Free 14-day trial
  • Product viability calculator
  • Profit calculator
  • Entire niche analysis (instead of individual products)
    • Sales data includes best sellers rank and reviews
    • Estimates include unit sales and revenue

CashCowPro

CashCowPro Product Screenshot

  • Free 10-day trial
  • Sales data
    • Real-time sales, profits, promotions, and refunds
    • Best sellers rank and ranking
    • Stock levels and sales velocity

Egrow

Egrow Home

  • Free plan with limited features
  • Product database
  • Live Amazon scanner
  • Saved searches
  • Product tracker
    • Track historical sales data for up to 90 days
      • Best sellers ranking, sales, and prices
  • Keyword and niche research tool

Helium 10 Xray

Helium 10 Xray page

  • Free plan with limited usage for Xray and other Helium10 tools
  • Chrome extension
  • Market data
    • Sales, price, reviews, and trends
    • Average sales rank, best sellers rank
    • Average and total monthly revenue
    • Current and average price
    • FBA fees
  • Success score

Jungle Scout

Jungle Scout Home

  • No free trial or plan
  • Chrome extension
  • Product database
  • Opportunity score
  • Search filters
  • Product data
    • Average sales, rank, price, and reviews

SellerApp

SellerApp Product Research Page

  • Free 7-day trial
  • Product database
    • Sales and revenue estimates, competition intensity, and sales rank
  • Search filters
  • Product ideas
    • Shows products with large changes in best sellers rank (BSR)
    • Newly-released products
    • Market trends or trending products
    • Wishlisted products

SellerLabs Scope

SellerLabs Scope page

  • No free trial, but 7-day money back guarantee
  • Sales data
    • Sales, fees, and revenue estimates
  • Search filters
  • Export keywords and products to list for tracking

Sellics Product Research

Sellics Product Research

  • Free 14-day trial
  • Search filters
  • Product database
  • Product detector
    • Estimated sales, sales rank, weight, reviews, and sellers
  • Niche analyzer
  • Sales tracking
    • Track actual sales volume

Unicorn Smasher

Unicorn Smasher Home

  • Free
  • Sales data
    • Prices, best sellers rank, reviews, ratings, and estimated sales
  • Accurate sales estimates
  • Opportunity score

Viral Launch Amazon Product Finder

Viral Launch Product Finder

  • No free trial, but 2 months free if paid annually
  • Search filters
  • Accurate sales estimates
  • Chrome extension
  • Product and market trends
  • Idea Score

That’s it for the most popular Amazon product research tools available online! Most have some kind of free trial that you can try to see if the service has the features you’re looking for. Even better are the ones that not only work well for you, but they also have other services that you can benefit from using.

Don’t forget to check out our article on sourcing products to find out where Amazon sellers get their inventory. Read through the used section to get an idea of how you can start selling online today, or scroll down to the selling on Amazon section to get ideas for sourcing new products!

If all you’re looking for is a product research tool, then paying a monthly subscription for a suite of tools you aren’t going to use seems like a waste. Instead, pay only for the tool you need. No single tool is 100% accurate with its estimates anyhow, and you shouldn’t base large business decisions on just one estimate. Instead, use these tools to supplement other data that you already have.

If you like this article on Amazon product research tools, then check out these other articles on Amazon tools and services: