TPHUBS.COMSelling on Amazon: real costs, account health and the risk of deactivation
Amazon has the largest pool of buyers in the US and many other countries, which makes it very attractive. It is also known for fast suspensions and hard appeals. Here are the real costs and the main risks, with sources, so you can decide whether to put your whole business on one marketplace.
1. What it costs to sell on Amazon
From Amazon's official pricing page at the time of writing:
| Fee | Rate | Notes |
|---|---|---|
| Individual plan | $0.99 per item sold | For sellers under roughly 40 items a month |
| Professional plan | $39.99/month | Charged whether or not you sell that month |
| Referral fee | 8% to 15% in most categories | Many categories have a $0.30 minimum per item; some are much higher |
| FBA fees (if Amazon ships) | By size and weight | Plus monthly and long-term storage fees |
| Advertising | Pay per click | In practice close to essential for new listings |
Example: a $30 item at a 15% referral fee costs $4.50, plus a few dollars of FBA fees depending on size, plus ads. What's left can be far less than you expect, so run the numbers in Amazon's Revenue Calculator before you buy stock.
Amazon also adds new fees regularly. In 2024 it introduced an inbound placement fee and a low-inventory-level fee for FBA sellers. You can be charged for sending stock in a way Amazon doesn't prefer, or for keeping too little stock.
2. Account health and deactivation
Amazon watches account health closely. Some of the targets it sets for sellers:
- Order Defect Rate under 1%: negative feedback, A-to-z claims and chargebacks.
- Late shipment rate under 4%, pre-fulfillment cancellation rate under 2.5%.
- No intellectual property complaints, restricted products or authenticity complaints.
Breaches can lead to deactivation. Your listings disappear, funds can be held, and FBA stock keeps incurring storage fees. Appeals require a Plan of Action and can take weeks. Amazon's own seller forums are full of owners whose funds were held after a deactivation.
For small sellers in particular: a single IP complaint from a competitor, or one batch of complaints from buyers, can take a listing down first and get reviewed later.
3. Other downsides
- You don't own the customer. Amazon forbids using buyer messages or packaging to send buyers to another website, and leaves you almost no way to market to them.
- Competition on your own listing. Other sellers can sell the same product and win the Buy Box with a lower price.
- Your brand fades. Buyers say “I got it on Amazon”, not “I bought from your shop”.
- Cash tied up in stock. Inventory sent to FBA is capital sitting in Amazon's warehouse, and removing it costs money too.
Your own brand store: insurance for Amazon sellers
Many professional Amazon sellers run a brand store alongside, usually on Shopify. The benefits:
- If your Amazon account is deactivated, loyal customers and followers can still buy from you.
- Google, Facebook and TikTok ads send buyers to your store, so you keep the 8% to 15%.
- You collect customer emails and sell to them again with no marketplace fee.
- A store on your own domain supports your brand registration and builds trust with partners.
Shopify can even use your FBA stock to ship store orders (Multi-Channel Fulfillment), so you don't need a separate warehouse.
TPHubs sets up Shopify brand stores for Amazon sellers: design, policy pages, international payments, analytics, and every account handed over in your name. See pricing or read how to grow your own store without breaking marketplace rules.