You may have heard of the term “seller repayment” if you are new to Amazon selling. Amazon is an excellent marketplace, but it comes with a price. A seller repayment fee is one of many fees that you might accrue over the course of your business.
Amazon charges a seller repay fee to pay past unpaid charges. Let’s say you owe any fees or service charges but don’t have enough money to pay them. If that happens, Amazon will charge your credit card and you’ll see a “seller repay” entry on the next card statement.
Continue reading to find out more about seller repayment and how it relates with the other fees, Amazon seller refunds and expenses of doing business.
What is Amazon Seller Repay?
Let’s say you have been using Amazon for a while but haven’t made any sales in the last few months. Your balance is low, if not completely empty, because you withdrew funds from past sales. You’ll be charged $39.99 monthly if you sign up for a Professional seller subscription when you first sign up. This applies regardless of whether or not you sell anything. Amazon will normally debit your account balance to cover this, but they can charge your credit card if you don’t have any.
This is an example of a seller payment charge. Amazon seller repay is the second attempt to pay fees after the first failed.
Amazon will take any amount you owe to Amazon for subscription fees or service fees and automatically withdraw it from your account balance. This ensures that you don’t have to pay anything extra. If your account balance is not sufficient to cover the charges however, Amazon will charge your card.
You could be charged a seller repayment fee if you don’t sell enough on Amazon. It’s important to keep track of your finances and to understand the fees that are being applied to your seller account.
How to Avoid Seller Repayment Fees
Now that you are more familiar with the services Amazon charges you, let’s discuss some ways you can avoid these unsolicited seller repayment fees.
Know What You Owe
You should know which fees are being charged regularly, what new fees or one-time fees may be accrued, how much you owe and whether your funds can cover these charges. It is important to understand how cash flows into and out of your accounts in order to avoid surprises.
Keep Payments Up To Date
You can take action if you are aware that you don’t have enough funds in your account. If you have your card file, you can pay any fees. You won’t be surprised if the charges show up on your statement.
Change Your Account Subscription
If you are unable to sell enough products to pay the Professional subscription fees, you can downgrade to an Individual subscription. You won’t be charged fees unless you sell a product as an individual seller. Even then, fees are usually lower.
Can I Cancel My Seller Account?
If they don’t make enough money to cover their expenses or make a profit, some sellers might choose to close the account. This is an option that some sellers may consider, but it’s important that you remember that Amazon can’t reopen accounts that have been closed. You will need to create a new seller account if you want to sell again through Amazon.
It is generally better to simply downgrade to an Individual plan. You won’t be charged any fees for selling any items, but you can still keep your account and make a return to Professional at any time.