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What are Amazon Seller Repay Charges and Can You Avoid Them?

Written by
Vanessa Hung
January 25, 2024

Are you worried about Amazon Seller Repay Charges eating into your profits? You are not alone. Many sellers find these fees confusing and daunting. This article will serve as a step-by-step guide to understanding Amazon Seller Repay, its application, and how to avoid unnecessary charges.

Ready for the ride? Let's dive in!

What is Amazon Seller Repay?

Amazon Seller Repay refers to the charges that Amazon may apply to a seller's account for various reasons, such as unpaid fees or customer refunds.


Amazon Seller Repay is a mechanism developed by Amazon that requires sellers to repay any outstanding charges or fees. Sellers must clear these dues when their Amazon account balance cannot fully cover the amount owed.

This could be due to several factors including referral fees, subscription costs, shipping credits or advertising charges among others. The process enforces financial responsibility on part of the sellers and ensures smooth operations within the marketplace.


Amazon Seller Repay serves a critical function in managing unpaid charges. This system vigilantly tracks any pending dues from the Amazon seller account related to selling fees, advertising costs or other applicable charges.

It ensures that all transactions are properly accounted for and helps maintain accountability between Amazon and its diverse network of sellers.

The primary aim behind this is to ensure smooth financial operations on the platform. When a charge remains unpaid due to insufficient funds or an expired registered credit card, the Seller Repay steps into action.

It safeguards the interests of both parties involved, ensuring seamless customer service while maintaining high seller performance metrics.

Application of Seller Repay charges

Amazon Seller Repay charges come into effect when a seller on Amazon fails to settle the total amount due. The company uses these charges as a method to recover any unpaid costs related to your seller account, which could include professional selling fees, refund administration fees or advertising costs.

Seller Repayment Charges apply automatically and are subtracted from your available balance in the Payments section of Seller Central. These charges can be sizable; hence it's crucial for sellers to stay vigilant about their financial standings and make regular checks on their accounts.

If your account lacks sufficient funds, Amazon will attempt to collect repayment directly from the registered credit card linked with your Seller Central Account. Sellers who don't comply may face additional consequences such as temporary selling restrictions or even permanent suspension of their accounts on Amazon Marketplace.

Types of Amazon Seller Accounts and Related Fees

There are two types of Amazon seller accounts: Individual Seller Account and Professional Seller Account.

Individual Seller Account

An Individual Seller Account on Amazon is a basic, no-frills option for individuals who want to start selling their products online. With this type of account, you can list your items on the Amazon marketplace and manage your sales through the Seller Central dashboard.

One advantage of an Individual Seller Account is that there are no monthly subscription fees. Instead, you only pay a per-item fee when your product sells. However, keep in mind that there are limitations with this type of account.

For example, you won't have access to certain features like cutting-edge advertising tools or advanced seller metrics. So if you're looking to scale your business and take advantage of all that Amazon has to offer, upgrading to a Professional Seller Account may be worth considering.

Professional Seller Account

A Professional Seller Account on Amazon is a paid subscription that allows sellers to list and sell an unlimited number of products. With this account, sellers have access to advanced tools and features, such as bulk listing and reporting capabilities, that can help streamline their selling process.

In order to maintain a Professional Seller Account, sellers are required to pay a monthly fee of $39.99 in addition to other applicable fees, such as referral fees for each item sold.

This type of seller account is ideal for businesses or individuals who plan on selling a large volume of products on the platform.

Additional Fees (Referral, Closing, Fulfillment, High-Volume Listing)

Amazon charges a number of additional fees for sellers in specific situations. These can include referral fees, closing fees, fulfillment fees, and high-volume listing fees. The specific amount charged can vary depending on the type of product sold, the category it falls into, and the seller's volume of sales.

How to Avoid Amazon Seller Repay Charges

Learn the step-by-step guide to avoiding Amazon Seller Repay charges and protect your business from unnecessary fees and charges.

Understanding Amazon's fee structure

To successfully navigate Amazon's fee structure, it's crucial to have a solid understanding of how it works. This involves knowing the different types of fees associated with selling on the platform and being aware of any additional charges that may apply.

By familiarizing yourself with these details, you can better manage your finances and avoid any unexpected expenses. Keeping track of your regular and additional selling fees, selecting the right selling account, making timely payments, and canceling your account if necessary are all important steps in understanding Amazon's fee structure effectively.

Keeping track of regular and additional selling fees

Keeping track of regular and additional selling fees is crucial for Amazon sellers. It helps them manage their finances efficiently and avoid unexpected charges. Here are some steps to help you stay on top of your fees:

  1. Review your fee breakdown regularly.
  2. Keep track of referral fees, closing fees, fulfillment fees, and high - volume listing fees.
  3. Utilize Amazon's Seller Central dashboard to monitor your fee activity.
  4. Set up notifications for any changes in fees or charges.
  5. Keep a record of all transactions and compare them with the fees charged.
  6. Consider using accounting software or tools to automatically track your fees.
  7. Stay updated on Amazon's fee structure changes through regular research and reading official communications.

Choosing the right selling account

To avoid unnecessary charges and maximize your profits on Amazon, it's crucial to choose the right selling account. There are two options: Individual Seller Account and Professional Seller Account.

The Individual account is suitable for those who sell less than 40 items per month, while the Professional account is ideal for high-volume sellers. Consider your business needs and volume of sales to determine which account type is best for you.

Making timely payments

To avoid unnecessary charges and fees, it is crucial for sellers on Amazon to make timely payments. By ensuring that your payments are made on time, you can avoid any potential late payment penalties or interest charges.

Keeping track of your payment due dates and setting up reminders can help you stay organized and ensure that you never miss a payment. Additionally, it's important to have a registered credit card on file with Amazon to facilitate smooth and hassle-free transactions.

Making timely payments not only helps maintain a positive seller account performance but also builds trust with the platform and increases customer satisfaction.

Canceling your Amazon Seller account if necessary

If you’re not making sales, or you’re not profitable, then it might be time to consider canceling your Amazon Seller account.

To cancel your Amazon Seller account if necessary, follow these steps:

  1. Go to the "Settings" section in your Amazon Seller Central account.
  2. Click on "Account Info" in the dropdown menu.
  3. Scroll down to the "Your Services" section and click on "Close Account."
  4. Review the information about closing your account and click on "Request Account Closure."
  5. Follow any additional prompts or instructions to confirm the closure of your account.


In conclusion, understanding and managing Amazon Seller Repay charges is crucial for sellers on the platform. By staying informed about Amazon's fee structure, choosing the right selling account, and making timely payments, sellers can avoid unnecessary repay charges.

Taking these steps will help sellers maintain a successful and profitable business on Amazon.

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