For an average product, Amazon charges 45% of its selling price as a sum of its various fees. But this percentage varies from product to product based on its size, dimensions, weight, and category etc. Lets have a comprehensive look of how the Amazon seller fees work.
How Much Does Amazon Charge To Sell:
Amazon charges various fees to the sellers on its platform. These fees depend on the following things:
- The product category you are selling in. (Referral fee percentage) (Per item fee)
- Your advertised pricing for that product. (Referral fee)
- Your Amazon seller account type i.e. individual or professional. (Per item fee)
- Your order fulfilment method i.e. FBA or FBM. (Fulfilment fee)
- Your Amazon Seller Central monthly plan type. (Subscription fee)
- Your VAT registration type, if you are selling in the UK and Europe. (VAT fee)
Easy Fees Calculator
If you plan to sell on Amazon and want to know how to calculate FBA fees or other related fees for your product, this is the best link for you. Using this calculator you can easily estimate all the fees for the product you plan to sell and see if you will make a profit after paying off all the Amazon fees.
Amazon Seller Fees
Now let’s discuss all the seller fees in a bit more detail. Two types of fees you will encounter when you start selling on Amazon.
- Amazon account-related fees
- Sales related fees
Account-related fees:
These are the fees related to your Amazon Seller Central subscription charges. if you are selling under an Amazon professional plan then you will pay a $40 monthly fee in the USA and £25 in the UK. If you’re not selling under a professional plan then Amazon will charge you per item fee for each unit you sell. And this will be in addition to the referral fee that you will pay on that unit. See this table:
| Country | Account Type | Best for | Monthly Fee | Per Item Fee |
| USA | Individual Seller | Individuals and occasional sellers | $0 | $0.99 |
| USA | Professional Seller | Businesses and volume sellers | $39.99 | – |
| UK | Individual Seller | Occasional sellers who don’t want to advertise or use advanced tools | £0 | £0.75 (excl. VAT) |
| UK | Professional Seller | Businesses and volume sellers who want to use advanced selling tools and want to sell in the restricted categories. | £25 (excl. VAT) | – |
Sales related fees:
You pay these fees on each sale you make on Amazon. Let’s discuss each one of these one by one.
Referral fee:
When you make a sale Amazon will charge you a fixed percentage of the selling price of the product. This is called the referral fee and it varies from product category to category. For example, in the below table, you can see how the referral fee percentage changes if you list your product in different product categories on Amazon.
Referral fee vs Fixed fee:
You will charge either one of these fees based on whichever is the highest.
Table For the UK
| Fee categories | Referral fee (including the digital services tax) | Per-item minimum referral fee |
|---|---|---|
| Amazon Device Accessories | 45.9% | £0.25 |
| Automotive and Powersports | £0.25 | |
| 15.3% for the portion of the total sales price up to £45.00 | ||
| 9.18% for any portion of the total sales price greater than £45.00 | ||
| Baby Products | £0.25 | |
| 8.16% for products with a total sales price up to £10.00 | ||
| 15.3% for products with a total sales price greater than £10.00 | ||
| Backpacks and Handbags | 15.3% | £0.25 |
| Beauty, Health, and Personal Care* | £0.25 | |
| 8.16% for products with a total sales price up to £10.00 | ||
| 15.3% for products with a total sales price greater than £10.00 | ||
| Beer, Wine, and Spirits | 10.2% | £0.25 |
| Books | ||
| 15.3% | ||
| And a closing fee of £0.50 per item sold | ||
| Business, Industrial, and Scientific Supplies | 15.3% | £0.25 |
| Compact Appliances | 15.3% | £0.25 |
| Clothing and Accessories | £0.25 | |
| For Fulfilment by Amazon (FBA) and Seller Fulfilled Prime selections: | ||
| 15.3% for the portion of the total sales price up to £40.00 | ||
| 7.14% for any portion of the total sales price greater than £40.00 | ||
| For all other selections: | ||
| 15.3% flat fee | ||
| Commercial Electrical and Energy Supplies | 12.24% | £0.25 |
| Computers | 7.14% | £0.25 |
| Consumer Electronics | 7.14% | £0.25 |
| Cycling Accessories | 8.16% | £0.25 |
| Electronic Accessories | £0.25 | |
| 15.3% for the portion of the total sales price up to ₤100.00 | ||
| 8.16% for any portion of the total sales price greater than ₤100.00 | ||
| Eyewear | 15.30% | £0.25 |
| Footwear | 15.30% | £0.25 |
| Full-Size Appliances | 7.14% | £0.25 |
| Furniture | £0.25 | |
| 15.3% for the portion of the total sales price up to £175.00 | ||
| 10.2% for any portion of the total sales price greater than £175.00 | ||
| Grocery and Gourmet | ||
| 8.16% for products with a total sales price up to £10.00 | ||
| 15.3% for products with a total sales price greater than £10.00 | ||
| Handmade | 12.24% | £0.25 |
| Home and Kitchen | 15.3% | £0.25 |
| Jewelry | £0.25 | |
| 20.4% for the portion of the total sales price up to £225.00 | ||
| 5.1% for any portion of the total sales price greater than £225.00 | ||
| Lawn and Garden | 15.3% | £0.25 |
| Luggage | 15.3% | £0.25 |
| Mattresses | 15.3% | £0.25 |
| Music, Video, and DVD | ||
| 15.3% | ||
| And a closing fee of £0.50 per item sold | ||
| Musical Instruments and AV Production | 12.24% | £0.25 |
| Office Products | 15.3% | £0.25 |
| Pet Products | 15.3% | £0.25 |
| Software | ||
| 15.3% | ||
| And a closing fee of £0.50 per item sold | ||
| Sports and Outdoors | 15.3% | £0.25 |
| Tyres | 7.14% | £0.25 |
| Tools and Home Improvement | 13.26% | £0.25 |
| Toys and Games | 15.3% | £0.25 |
| Video Games – Games and Accessories | ||
| 15.3% | ||
| And a closing fee of £0.50 per item sold | ||
| Video Game Consoles | ||
| 8.16% | ||
| And a closing fee of £0.50 per item sold | ||
| Watches | £0.25 | |
| 15.3% for the portion of the total sales price up to £225.00 | ||
| 5.1% for any portion of the total sales price greater than £225.00 | ||
| Everything else | 15.3% | £0.25 |
For the USA:
| Category | Referral Fee Percentage | Referral Fee Minimum Amount |
|---|---|---|
| Amazon Device Accessories | 45% | $0.30 |
| Appliances – Compact | 15% up to $300.00 sales price, 8% > $300.00 | $0.30 |
| Appliances – Full-size | 8% | $0.30 |
| Automotive and Powersports | 12% | $0.30 |
| Base Equipment Power Tools | 12% | $0.30 |
| Baby Products | 8% for ≤ $10.00, 15% > $10.00 | $0.30 |
| Backpacks, Handbags, and Luggage | 15% | $0.30 |
| Beauty, Health, and Personal Care | 8% for ≤ $10.00, 15% > $10.00 | $0.30 |
| Business, Industrial, and Scientific Supplies | 12% | $0.30 |
| Clothing and Accessories | 5% for ≤ $15.00, 10% for > $15.00 and ≤ $20.00, 17% for > $20.00 | $0.30 |
| Computers | 8% | $0.30 |
| Consumer Electronics 2 | 8% | $0.30 |
| Electronics Accessories 3 | 15% up to $100.00, 8% > $100.00 | $0.30 |
| Eyewear | 15% | $0.30 |
| Fine Art | 20% up to $100.00, 15% > $100.00 and ≤ $1,000, 10% > $1,000 and ≤ $5,000, 5% > $5,000 | — |
| Footwear | 15% | $0.30 |
| Furniture | 15% up to $200.00, 10% > $200.00 | $0.30 |
| Gift Cards | 20% | — |
| Grocery and Gourmet | 8% for ≤ $15.00, 15% > $15.00 | — |
| Home and Kitchen | 15% | $0.30 |
| Jewelry | 20% up to $250.00, 5% > $250.00 | $0.30 |
| Lawn and Garden | 15% | $0.30 |
| Lawn Mowers and Snow Throwers | 15% up to $500.00, 8% > $500.00 | $0.30 |
| Media – Books, DVD, Music, Software, Video | 15%
|
— |
| Musical Instruments and AV Production | 15% | $0.30 |
| Office Products | 15% | $0.30 |
| Pet Supplies | 15%, except 22% for veterinary diets | $0.30 |
| Sports and Outdoors | 15% | $0.30 |
| Tires | 10% | $0.30 |
| Tools and Home Improvement | 15% | $0.30 |
| Toys and Games | 15% | $0.30 |
| Video Games and Gaming Accessories | 15% | — |
| Video Game Consoles | 8% | — |
| Watches | 16% up to $1,500.00, 3% > $1,500.00 | $0.30 |
| Everything Else | 15% | $0.30 |
Closing fee:
Did you notice that in some categories there is an extra closing fee mentioned in the table? This extra fee is applied to the media-related categories in addition to the referral fee percentage. Examples: Books, DVD, Music, Software and computer/video games, Video, and Video game consoles.
High-volume listing fee:
This fee applies if the seller exceeds 2 million SKUs in a given month and is calculated as £0.0003 per SKU over the 2 million threshold. It’s essentially a fee for having a large number of products listed.
For instance, if a seller lists a total of 2.5 million active non-media SKUs during the month, the fee applied for that month would be £150 (500,000 SKUs above 2 million x £0.0003).
This fee structure is designed to encourage efficient use of Amazon’s resources and to ensure that sellers with a high volume of listings contribute proportionately to the costs associated with managing those listings.
In Case of Return Order: Fee Refund?
Refund processing fees are applied when refunds are issued to customers for orders where referral fees have been previously charged. Amazon will reimburse sellers the referral fee amount for the refunded item(s), deducting a refund administration fee. This fee is calculated as the lesser of £5.00 or 20% of the referral fee.
Example:
If you issue a refund to a customer for a £20.00 item falling under a category with a 12% referral fee, your refund administration fee would be calculated as follows: £20.00 x 12% = £2.40. Therefore, the refund administration fee in this case would be £0.30, as it is the lesser of £5.00 or 20% of £2.40.
FBA Fee:
Amazon provides order fulfilment services to its sellers in which they store, pack, and ship products to the customers. You just send the whole inventory to their fulfilment centre at once and they fulfil the orders once they start coming. For this fulfilment service, Amazon charges a fee which is called the FBA fee. FBA fee is charged per unit of the product depending upon the product’s dimensions and weight.
| Product Type | SD Card | Toaster | Wooden Cabinet | Keyboard |
|---|---|---|---|---|
| Product size | Small Envelope | Standard Parcel | Standard Oversize | Large Oversize |
| Dimensions | 3.2 x 2.4 x 0.2 cm | 25.5 x 18.5 x 17 cm | 74 x 56 x 32 cm | 150 x 10 x 10 cm |
| Outbound Shipping | 30 g | 2.2 kg | 6.2 kg | 5.4 kg |
| Sell on Amazon.co.uk – Fulfil from inventory in UK | £1.71 | £5.65 | £8.24 | £12.52 |
| Sell on European stores – Fulfil from inventory in UK (Remote Fulfilment) | €4.05 | €11.07 | €18.26 | €25.62 |
Storage Fee:
If you keep your product in the FBA centre for more than a month then Amazon will also charge you a FBA storage fee. Details are as follows.
| Month | Clothing, Shoes and Bags (standard size) | Dangerous Goods – Hazmat (standard size) | All other categories (standard size) | Dangerous Goods – Hazmat (Oversize) | All other categories (Oversize) |
|---|---|---|---|---|---|
| January – September | £0.52 per cubic foot per month | £0.75 per cubic foot per month | £0.78 per cubic foot per month | £0.65 per cubic foot per month | £0.51 per cubic foot per month |
| October – December | £0.66 per cubic foot per month | £1.05 per cubic foot per month | £1.21 per cubic foot per month | £0.90 per cubic foot per month | £0.70 per cubic foot per month |
Amazon Prep Charges:
Amazon also provides product labeling and bundling etc. services these are called prep services. Before you send your inventory to Amazon you have to properly label your product and out boxes/ pallets. You can also ask Amazon to do it in that case there will be an extra fee for each step of prep you require. To know the exact charges as per your product you can use this calculator for the UK and this for the USA.
Example:
For an average product (Dimensions : 1 x 7 x 10 inches; Weight: 1.48 Pounds)in the household category, the prep charges are as follows.
| For the UK | For the USA | ||
|---|---|---|---|
| Opaque bagging | £0.36 | Inventory placement | $0.41 |
| Tape | £0.25 | Opaque bagging | $1.00 |
| Label | £0.27 | Tape | $0.60 |
| Bagging | £0.35 | Label | $0.55 |
| Bubble wrap | £0.45 | Bagging | $0.70 |
| Bubble wrap | $1.04 |
Avoid FBA Fees:
If you are not availing of FBA services and fulfilling your order by yourself from your warehouse then this is called FBM. There is no fee on FBM (fulfilled by merchant). Hence you can avoid FBA and Storage fees by adopting the FBM model.
Take my HELP!
If you are starting a new business on Amazon you can reach out to me to partner up. I’ve been selling on Amazon for quite some time and I have very good experience generating ROI from Amazon.
Regards,
Samar
