Referral Fee

What are Amazon’s referral fees

A referral fee is the fee service providers pay to third parties for them to recommend their services or send customers directly to them. On online marketplaces, this is calculated as a percentage based cost. Each marketplace operates referral fees differently, so take care to understand the intricacies of each.

Amazon Referral Fee

What are Amazon’s referral fees? Well, it depends. Both individual and professional sellers pay a referral fee for any products they may sell. For media products, like books music, videos, DVDs, video games and more, Amazon will deduct the higher or the applicable referral fee percentage, or applicable per item minimum referral fee calculated on the sales price. This does not include any taxes. Amazon’s referral fees are calculated according to the total sales price, meaning the amount paid by the buyer which includes shipping, gift wrap, and other charges. There is an additional $.99 fee per item sold on individual accounts.

Walmart Referral Fee

Walmart’s referral fees are quite similar to Amazon’s referral fees as both charge category based fees. Walmart, however, does not charge for an added variable fee or an added listing fee. The Walmart marketplace is without minimum referral fees, and sellers need to pay a percentage of the product’s total sale price.

How to calculate referral fees into the listing price?

With fees for individual and professional accounts, referral fees, and listing fees, it’s easy to get overwhelmed and confused as to how to determine a competitive yet lucrative price for your products. By using a product research tool, sellers can gain a fuller picture of associated fees in order to price their products accurately.

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