The Hidden Costs of Selling on Amazon: What Most New Sellers Overlook

💸 Think You Only Lose Money When You Don’t Make Sales? Think Again.

Most new Amazon sellers focus on making more sales to increase profit. But what if the real danger to your profit lies in the hidden costs you’re not tracking?

Selling on Amazon comes with invisible fees that can quietly eat away at your margins—even when you think you’re doing well.

Let’s break down the hidden costs you must watch out for:

🔍 Hidden Costs That Hurt Amazon Sellers:

1. FBA Storage & Long-Term Storage Fees

At first, Fulfilled by Amazon (FBA) seems convenient—but keeping inventory in Amazon warehouses too long comes at a cost.

📦 Why it matters:

• Amazon charges monthly storage fees based on volume.

• After 181+ days, you may incur long-term storage fees (LTSF).

💡 Pro Tip:
Use demand forecasting tools to avoid overstocking and plan smarter restocks.

2. Return Handling Fees

Returns are part of e-commerce—but did you know Amazon charges return processing fees?

🧾 Even when you refund the customer, Amazon may still charge:

• Restocking fees

• Return shipping fees

• Product disposal or repackaging costs

💡 Pro Tip:
Track your return reasons and adjust product descriptions or quality accordingly.

3. Refund Deductions

When you issue a refund, you don’t always get back the full fees Amazon took during the sale.

💸 Common deductions:

• Partial refund on referral fees

• Shipping costs may not be reimbursed

• Admin fees for processing the refund

💡 Pro Tip:
Use a profit tracking tool to account for these small but impactful losses.

4. Packaging & Prep Requirements

Amazon requires strict packaging standards—barcode labels, poly bags, bubble wrap, and more.

📦 If you use a prep center, they will charge:

• Per unit fees

• Labeling costs

• Bundling or bagging charges

💡 Pro Tip:
Factor in prep costs in your initial product pricing and supplier negotiations.

5. Advertising (PPC) Costs

Amazon PPC can drive visibility—but an unmanaged campaign can wipe out your profits.

📊 A high ACoS (Advertising Cost of Sale) = You’re spending more than you’re earning.

💡 Pro Tip:
Regularly optimize your ad campaigns and focus on keywords with low ACoS and high conversion.

🧠 Conclusion: Revenue is Vanity, Profit is Sanity.

Don’t just look at your sales dashboard.
Understand your real profit after all costs—because margin is where your business either survives or dies.

🎯 Need Help Managing Your Hidden Amazon Costs?
At Alizatouch, we help sellers protect their margins with:

• Data-driven audits

• Profit analysis systems

• Inventory & ad strategy

Let us handle the backend, while you scale the front.

📩 DM us to start your margin makeover.