Silly beginner questions

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Seller_qWCIczlJzWCWM

Silly beginner questions

Hi,

Apologies for the beginner questions but I am trying to build a robust business case to ensure that trading on Amazon will be profitable for me and some maybe obvious questions but here goes…

As an Amazon seller using FBA what happens when a buyer purchases one of my products and pays for delivery (as they are not a prime member or are not buying enough to obtain free delivery) . Does Amazon charge me the referral percentage on the full amount (List price+VAT+Delivery charge) and what happens with the delivery charge (I assume Amazon retains this as they are providing the fulfilment and credit me the (full item selling amount – referral fee).

When selling through Amazon, do I incur payment charges or is this included as part of the Selling on Amazon package – I cannot find any information to suggest that card payment charges are levied against me.

If I sell off Amazon via MCF then do I still pay the referral fee (I assume not)? As FBA costs for sold ‘off-amazon’ are higher I assume that this compensates for the Referral fee I pay that I would pay if I am selling on Amazon?

Additionally, when selling Off-Amazon I assume that my orders don’t qualify for prime or free delivery and I must simply offer the delivery services as defined by Amazon

Do I actually need an amazon seller account to use MCF?

Thanks

Justin

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Seller_qWxcObatF9Nzm

Hi - what is MCF please?

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Seller_z6B2L9xab6HlP

The referral fee is based on the item’s price and category. If you fulfil the item yourself they also charge a referral fee on the postage price to stop people listing items for 1p with £15 postage. If using FBA and the buyer pays for postage, Amazon retains this but only charges a referral fee on the item’s price. The listing price includes any applicable VAT. Amazon fees (except adverts) are usually charged from Luxembourg using the reverse charge VAT method.

Payment charges are included in the referral fee. If you’re selling to other marketplaces Amazon can do the currency conversion (e.g. EUR marketplace to GBP bank account) themselves, but their rates are pretty bad. It would be best to set up an external account (e.g. Transferwise) to get better international rates.

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