Understanding The Amazon Shipping Credit

Businesses and individuals who sell on Amazon need to understand how the Amazon shipping credit works. Before you start to list your items to sell on Amazon, take a few minutes to ensure that you know how the Amazon shipping credit can affect your bottom line.

What Is The Amazon Shipping Credit?

Although Amazon sellers are able to set their own shipping costs, Amazon offers a shipping credit on each and every sale. The shipping credit is a set cost, depending on the type of product that’s being sold. Sellers should know how much of a credit (essentially a refund) they will receive from Amazon on each product that is sold since shipping costs are ultimately incorporated into the cost on Amazon.

What Happens If My Shipping Charges Are Over The Credit?

The Amazon shipping credit may not cover the entire cost of mailing the item, to the dismay of many sellers. However, Amazon considers it the sellers’ responsibility to cover any shipping fees above and beyond the Amazon shipping credit. For this reason, it’s vital that sellers understand shipping options and choose the best one.

How Is The Credit Paid To Me?

The Amazon shipping credit isn’t paid until a seller marks the item shipped in his or her seller account page. Amazon automatically sends funds to a seller’s bank account via Automatic Clearing House (ACH) every two weeks, although the disbursement can be set up to happen more frequently.

If you’re a brand new seller, Amazon may hold onto your product payment and shipping credit for up to 14 days. This happens so that Amazon can ensure that a buyer received the package and that it was described correctly, meaning it was exactly what the customer ordered.

Do Any Amazon Categories Have Different Shipping Credits?

Here are some of the most commonly provided Amazon shipping credits:

  • Books $3.99
  • Music $2.98
  • Videos $2.98
  • DVDs $2.98
  • Video Games $3.99
  • Software and Computer Games $3.99

Amazon realizes that some packages, such as electronics, sporting goods and others, will weigh more and therefore cost more to ship than a standard DVD or video game. Electronics, for instance, receive a shipping credit of $4.49, plus an additional $0.50 per pound. This helps ensure that sellers can ship heavy items and not be out too much money when shipping.

Can I Offer Free Shipping With The Shipping Credit?

At this time, Amazon does not allow people who sell on Amazon in the marketplace to provide free shipping. Some people who sell on Amazon choose to provide buyers with a refund after the purchase is completed. This can help create an atmosphere of good customer service, but isn’t necessary and many buyers do not expect it.

It’s vital to understand the Amazon shipping credit if you want to sell on Amazon. Not understanding how this shipping credit works could cause you to lose money on each transaction. Let this article be your guide!