Selling on Amazon Hong Kong, all the fees to consider

Hong Kong is a commercial hub for online sellers, especially for those selling on Amazon. However, there are costs and fees associated with selling online in Hong Kong which can vary depending on various factors such as the size of the business, the nature of the products, the storage location, etc. These costs and fees may include storage fees, shipping costs, import taxes, customs fees, marketing fees, and more. In this competitive environment, it is important for sellers to be aware of these costs and take them into account to maintain their profitability and success on Amazon in Hong Kong.

Selling on Amazon: listing fees

Listing commissions are fees that Amazon charges online sellers for having their products listed on the selling platform. In Hong Kong, these commissions can vary depending on various factors such as product category, selling price, order processing fees and shipping costs. This commission ranges from 6% to 45% of the selling price of the item.

For example, if you sell a book on Amazon, you can expect to pay a referral fee of 15% of the selling price. If you sell a video game console, you can expect to pay a referral fee of 8% of the sale price.

Sellers need to be aware of these fees and factor them into their pricing strategy to ensure they are profitable and competitive on Amazon in Hong Kong. In general, referral fees are a significant part of the cost of selling online on Amazon and therefore need to be factored into a company’s financial management. Referral fees are deducted from the total selling price, including shipping and handling costs.

FBA fee for an Amazon seller in Hong Kong

FBA fees, or “Fulfillment by Amazon” fees, are the fees that Amazon charges sellers to store, pack and ship their products to their customers. When a seller uses Amazon’s FBA service, they send their products to an Amazon distribution centre, where they are stored until an order is placed. Amazon then packages and ships the products directly to the customer, as well as handling any returns and refunds.

FBA fees can vary depending on various factors, such as product size and weight, storage time, shipping costs and packaging costs. However, using the FBA service can help sellers gain efficiencies and improve the customer experience, while also gaining access to Amazon Prime customers who can enjoy faster, free delivery. It is therefore important for sellers to understand FBA fees and factor them into their pricing strategy to ensure profitability on Amazon.

Subscription fees

Amazon Hong Kong offers two types of subscriptions for online sellers: the “individual plan” and the “business plan”. The individual plan is free, but charges an additional commission fee per sale, while the professional plan costs a fixed monthly subscription fee but offers a lower commission fee per sale. Amazon’s subscription fees for the Professional plan are generally higher than the $0.99 per item sold for the Individual plan, but can be beneficial for sellers who regularly sell on the platform.

The subscription fee for the Professional Plan in Hong Kong is currently $39.99 per month regardless of volume sold, but may vary depending on Amazon’s promotions and pricing changes.

It is important for sellers to understand the pros and cons of each plan and compare them to the commission fees to determine the most cost-effective plan for their business. Subscription fees can be a significant investment for sellers, but can also offer benefits such as access to exclusive sales and marketing tools and product promotion offers.

Advertising costs and fees

Advertising costs and fees on Amazon Hong Kong depend on the types of ads sellers choose to use. Amazon offers several advertising options, such as sponsored ads, product ads, and video ads, each with different fees.

Sponsored ads are paid ads that appear in search results and on product detail pages. Advertising fees for sponsored ads are charged on a cost-per-click basis, which means that sellers only pay when a customer clicks on their ad. Costs per click can vary depending on the competition for keywords and the product category.

Product ads, on the other hand, are free ads that appear on search results pages and product detail pages. However, sellers can pay an additional fee to increase the visibility of their ads in search results.

Video ads are paid ads that appear on Amazon Prime Video and other video platform partners. Advertising fees for video ads depend on various factors such as the length of the video, the target audience, and the number of views.

In general, advertising costs and fees on Amazon Hong Kong can vary depending on several factors, including advertising budget, sales targets, and product competition. Sellers should be aware of these costs and factor them into their advertising budget to maximise their profitability and success on Amazon Hong Kong.

Payment processing fees

When a seller makes a sale on Amazon, they must pay a payment processing fee of 4% of the item’s selling price, plus HKD 2.35 per transaction.

This fee covers the cost of processing the payment and transferring the funds to your bank account. It is important to note that this fee is deducted from the sale price, including shipping and handling.

Returns Processing Fees

If a customer returns an item, Amazon may charge the seller a returns processing fee, which may vary depending on the product category and the reason for the return.

For example, if the item is returned because the customer has changed their mind, the fee is usually equal to the original referral fee. If the item is returned because it was defective, the fee may be waived. It is important to consider this fee when pricing your products to ensure that you will still make a profit, even in the event of a return.

Amazon Hong Kong offers a returns management service for sellers who use the FBA service. When a customer returns a product purchased from an FBA seller, Amazon manages the processing and handling of the returns, including refunding the customer.

Amazon Hong Kong’s returns processing fees vary depending on the product and the category it is in. In general, return processing fees for standard products are lower than those for bulky or heavy products. In addition, Amazon may charge additional fees for processing international returns.

Conclusion

In summary, selling on Amazon Hong Kong has many advantages for online sellers. Firstly, the platform offers a huge reach across the globe, allowing sellers to reach a global audience and increase their online visibility. In addition, Amazon offers services such as the FBA service, which allows sellers to store and ship their products easily and efficiently, as well as marketing and advertising tools that can help sellers increase their sales.

In addition, Amazon Hong Kong offers a superior customer experience, which can help improve the reputation and brand awareness of sellers. Customers can enjoy fast and reliable delivery options, as well as responsive and professional customer service.

Finally, Amazon Hong Kong offers a user-friendly platform for sellers, with simple and intuitive inventory and sales management tools. This allows sellers to easily manage their business and focus on growth and expansion.

However, as a seller on Amazon Hong Kong, it’s crucial to keep an eye on the costs associated with storage, shipping and fulfillment fees. By paying attention to these costs, you can maximise your profits and improve the profitability of your business on the platform.

In addition, our team in Hong Kong can provide you with tailored support to help you succeed on the Amazon platform.

For more information, please contact us at support@merritt.group.