Use FBA Early
If you’re an FBA seller and have an eligible product, use it early on in your Amazon business. You can start using FBA when you sell over 40 units per month and have at least $10,000 in annual sales.
Fulfillment by Amazon (FBA) is one of the most effective ways to reduce your Amazon seller costs because it takes care of all of the logistics for you, including picking items from your inventory, packing them up, storing them in an Amazon warehouse, and then shipping them out when a customer orders them from your listing. This way you don’t have to worry about picking or packing items yourself or storing them in a warehouse; everything is taken care of by Amazon!
FBA allows sellers to offload much of the work involved in handling inventory and shipping orders through third-party warehouses that are managed by Amazon itself. The main benefit of using FBA is that it allows sellers to focus on marketing and selling their products without having to worry about managing the physical aspects of their business such as warehouse space, order fulfillment, or returns processing. The downside is that FBA fees can add up quickly if you’re using this service for every item in your inventory but it’s still one.
Be Patient With Shipping Times
One of the best ways to save money on Amazon Seller Fees is by shipping your products more slowly and carefully. By shipping items more slowly, you can avoid paying for expedited shipping costs. If you choose to use USPS Priority Mail instead of FedEx or UPS, you’ll save even more money on your shipping costs.
Use Amazon Marketing Services (AMS)
AMS is a platform for paid advertising on Amazon’s website that lets sellers target customers based on keywords, product reviews, and other information. While AMS isn’t free, it’s cheaper than paying for ads through third-party services like Facebook or Google AdWords because they’re targeted specifically towards people who might buy your product rather than being blanketed across millions of websites and apps like those platforms are.
Amazon seller fees can eat up a big chunk of your profits, but there are several ways you can save money on Amazon seller costs.
Sellers who sell more than 40 items per month get a discount. If you’re selling more than 40 items per month, you’re eligible for the Professional Seller Plan (PSP). The PSP comes with free product advertising credits, free shipping supplies, and discounted fulfillment services. You’ll also have access to the FBA Revenue Calculator feature that helps you figure out how much you’ll make selling on Amazon. The best part about being a PSP is that your fees are lower: $39.95 per month plus 20% of each sale (vs. $99 plus 15% of each sale).
Sellers with high-rated feedback get a discount on their fees (but only if they meet certain criteria). If your feedback rating is high enough, you may qualify for Seller Fulfilled Prime (SFP). SFP enables sellers to ship their own orders without paying shipping fees or having to use FBA storage space — which means they can pass those savings onto customers and keep prices lower than competitors’ products