A Dragon in Sheep’s Clothing

Thoughts from a web designer, writer and cat lover.

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Amazon commissions

Posted by Heidi on February 10th, 2010 · View Comments

Well, this is annoying.  Receipt for a used book I sold today at Amazon:

Buyer’s Price: $0.99
Shipping Credit: $3.99
Amazon Commission: $-2.49
Your Earnings: $2.49

How is it possible for Amazon to take a commission larger than the sale price?

I looked at the fine print, and here it is:

Amazon collects fees only when your item sells. At that time, Amazon collects your sales price and shipping costs from the buyer, deducts a commission of 6 to 15 percent of the sales price, a per-transaction fee of $0.99, and a variable closing fee.

For books, that variable closing fee is $1.35.

If you’re a Pro Merchant, the $0.99 transaction fee is waived. Even so, Amazon really doesn’t make it easy for people to profit from low-priced items. It seems really unfair for Amazon to cut into your shipping allowance, though.

I knew Amazon’s commission was higher than, say, Half.com, but I didn’t realize they do it with fees which allow Amazon’s profit to be equal to or greater than yours.

Oh well. Live and learn.

Tags: Freelancing · Rants