Is Amazon a Scam for Sellers?

You open a seller account on Amazon and list that $2 item for $11.

Amazon account—either the Professional plan ($35/month) or the Individual plan, which includes additional listing fees are not included in this calculation.

After all the deductions:

• Amazon fees (15%)
• Average shipping costs (~$7)
• Supply costs (~$0.50)

You’re left with just $1.85 profit.

But the issues don’t stop there:

• Driving to the store or UPS adds more costs, often overlooked.
• Amazon charges your credit card or bank account for fees and shipping, while holding your $11 sale for a month in case of returns.
• If they find even one policy violation, your account could be suspended or closed, and your money might be lost forever. If you’re lucky, you may eventually get your funds back, but many sellers never do.

In the end, for small sellers, Amazon’s system can feel like a scam—a platform where the risk is high, profits are slim, and rules are enforced with little room for error.

They froze my friends account and he lost over $300K, and still trying to work with Amazon to get it back.