How to Price your listing for Tiered Referral Fees.

Improving your margin when selling products through a tiered referral fee system can start by understanding how to properly price your listing.

Depending on your sell price and your product category changing your price by a few cents could have a big impact on your total margin. Most Amazon referral fees are between 8% and 15%, however certain fees on certain categories are directly linked to the value of the landed sell price.

Some of the categories that are concerned by Tiered referral fees are Baby Products, Beauty, Health, and Personal Care, Electronics Accessories, Furniture, Grocery and Gourmet, Watches... Full list on Amazon.

For the beauty category as an example, a product priced below 10$ would be charged an 8% referral fee by Amazon. This same product sold at above 10$ would be charged an 15% referral rate. If we look at the referral fee value, in the first instance Amazon would charge 0.8$ and in the second instance 1.5$.