Amazon FBA Fees, How They Work, and How to Profit as a Seller

Sharing is caring!

When aspiring entrepreneurs first discover selling on Amazon, one of the big questions they inevitably ask is, “How much are Amazon FBA fees for sellers?” 

After all, if you’re going to sell on the world’s largest e-commerce network, you want to make sure that you’re going to profit.

This article takes a look at the fees you’ll pay as an Amazon seller, breaking them out into four distinct sections:

And if you need a calculator for fees, simply grab our FREE Amazon FBA fees calculator below.

 

Fees all Amazon sellers must pay

Whether you are an FBA or FBM seller, these are the fees you have to pay in order to sell on Amazon.

Referral fees

A referral fee is the “commission” paid to Amazon for each item sold on their platform. Typically, this fee is a flat percentage, often 15% or less. 

However, you don’t have to pay these fees upfront. Instead, referral fees are taken out of your Amazon account after the sale is made. 

Here is the current list of Amazon’s referral fees:

Categories Amazon deducts the greater of the applicable referral fee percentage or applicable per-item minimum referral fee.
Referral fee percentages Applicable minimum referral fee (applied on a per-item basis unless otherwise noted)
Amazon Device Accessories 45% $0.30
Baby Products (excluding Baby Apparel)
  • 8% for products with a total sales price of $10.00 or less, and
  • 15% for products with a total sales price greater
$0.30
Books4 15%
Camera and Photo¹ 8% $0.30
Cell Phone Devices* 8% $0.30
Consumer Electronics 8% $0.30
DVD4 15%
Electronics Accessories
  • 15% for the portion of the total sales price up to $100; and
  • 8% for any portion of the total sales price greater than $100
$0.30
Furniture & Decor
  • 15% for the portion of the total sales price up to $200.00, and
  • 10% for any portion of the total sales price greater than $200.00

Note: Mattresses will be charged 15% regardless of price point.

$0.30
Home & Garden (including Pet Supplies) 15% $0.30
Kitchen 15% $0.30
Major Appliances
  • 15% for the portion of the total sales price up to $300; and
  • 8% for any portion of the total sales price greater than $300
$0.30
Music4 15%
Musical Instruments 15% $0.30
Office Products 15% $0.30
Outdoors 15% $0.30
Personal Computers 6% $0.30
Software & Computer/Video Games4 15%
Sports (excluding Sports Collectibles) 15% $0.30
Tools & Home Improvement 15%, except 12% for base equipment power tools $0.30
Toys & Games² 15% $0.30
Unlocked Cell Phones 8% $0.30
Video & DVD4 15%
Video Game Consoles4 8%
Everything Else³ 15%
Categories Requiring Approval Referral fee percentages Applicable minimum referral fee
3D Printed Products 12%
Automotive & Powersports 12%, except 10% for tires and wheels products $0.30
Beauty
  • 8% for products with a total sales price of $10.00 or less, and
  • 15% for items with a total sales price greater than $10.00
$0.30
Clothing & Accessories 17% $0.30
Collectible Books 15%
Collectible Coins See Category Requirements for referral fees.
Entertainment Collectibles See Category Requirements for referral fees.
Fine Art See Category Requirements for referral fees.
Gift Cards 20%
Grocery & Gourmet Food**
  • 8% for products with a total sales price of $15.00 or less, and
  • 15% for products with a total sales price greater than $15.00
Health & Personal Care (including Personal Care Appliances)
  • 8% for products with a total sales price of $10.00 or less, and
  • 15% for items with a total sales price greater than $10.00
$0.30
Industrial & Scientific (including Food Service and Janitorial & Sanitation) 12% $0.30
Jewelry***
  • 20% for the portion of the total sales price up to $250.00, and
  • 5% for any portion of the total sales price greater than $250.00
$0.30
Luggage & Travel Accessories 15% $0.30
Shoes, Handbags & Sunglasses
  • 15% for products with a total sales price of up to $75
  • 18% for products with a total sales price above $75
$0.30
Sports Collectibles See Category Requirements for referral fees.
Watches
  • 16% for the portion of the total sales price up to $1,500; and
  • 3% for any portion of the total sales price greater than $1,500
$0.30

 

 

Note: Learn how to preview your fees using Amazon’s Fee Preview Report.

Individual per-item fees or subscription fees

There are two types of seller accounts on Amazon: individual and professional. 

Depending on the type of seller account you have, you will have to pay either the individual per-item fee Amazon charges you each time you make a sale transaction, or you will have to pay a monthly subscription fee.

Individual seller per-item fee

Individual sellers pay a flat $0.99 for each sales transaction, in lieu of a monthly subscription fee. 

Like referral fees, these fees are deducted only after a sale is made on Amazon. They are then subtracted from the amount Amazon places into your Amazon account balance. 

You do not have to pay the fee upfront. 

Professional seller subscription fee

Rather than paying a fee per product sold, professional sellers pay a monthly subscription fee of $39.99. But, like the fees an individual seller pays, subscription fees are taken from your Amazon account balance.

If you don’t have funds in your account, then the amount is deducted from your credit card.

Refund administration fees

If a shopper requests a refund on a product for which you have already been paid and Amazon issues the refund, Amazon charges a fee to process it. The fee is either $5.00 or 20% of the refunded charge, whichever is less. 

As with the other fees mentioned, the refund administration fees are immediately paid through your Amazon account balance, or charged to your credit card if your account doesn’t have the money to cover it.

Back to Top

 

Fees that only FBA sellers pay

If you are an FBA seller, these are the fees you’ll pay on Amazon.  

FBA fees

As an FBA seller, you do not have to pay for shipping, handling, or packaging to ship your goods. Instead, Amazon’s fulfillment employees pick, pack, and ship your products for you. 

To cover these costs, you are charged an FBA fee, which is determined by the size and weight of your product. 

Below are charts showing Amazon’s current FBA fees:

Amazon fba fees: standard size fulfillment fees

Note: Clothing, and items containing lithium batteries, have additional fees — $0.40/unit for clothing and $0.11/unit for Items containing lithium batteries.

FBA storage fees

Because your products are being stored in Amazon’s fulfillment centers, Amazon charges storage fees to maintain your inventory. 

There are two types of FBA storage fees: monthly and long-term.

Monthly storage fees

If you have inventory in an Amazon warehouse at the end of the month, Amazon charges you a monthly storage fee. These are either subtracted from your account balance, or added to your credit card if and when your Amazon account doesn’t have enough funds to cover the fee. 

These are the current monthly storage fees for storing products in Amazon’s fulfillment centers:

Amazon fba fees - oversize storage fees chart

Long-term storage fees

Amazon conducts inventory clean-ups on the 15th of each month. During the clean-up Amazon records any products that have sat in their fulfillment centers for 180 days or longer.

For those items stored for 180 days or longer, Amazon then charges the seller a Long term storage fee, which is $6.90 per cubic foot of storage used. 

For products that have been in Amazon’s warehouses for longer than 365 days, you’ll incur a charge of $0.15 per unit.

Like monthly storage fees, long-term storage fees are deducted on the same date each month from your Amazon seller account balance or from the credit card which you put on file when you registered as an Amazon seller.

Note: During Amazon’s busy seasons, these fees may go up to persuade sellers to remove slow-selling inventory.

Back to Top

 

Fees that only FBM sellers pay

FBM sellers do not have their own separate fees like FBA sellers do. However, the costs to sell as an FBM seller are often higher than those of an FBA seller, since FBM sellers have to store, pick, pack, and ship their own products. They also have to handle their own customer service.

For example, as an FBA seller selling a sword on Amazon for $30, I would pay $4.50 in referral fees and $11.64 in FBA fees. 

Were I to sell the same sword on Amazon as an FBM seller, I would have to factor in the shipping cost (roughly $8.00), the cost of packaging ($3.00), and the time it took to ship it ($6.67). This adds up to $17.67.

So, although I have to pay more fees as an Amazon FBA seller, ultimately it would end up costing me more to pack and ship my own products as an FBM seller.

 

To compare FBA and FBM costs, check out Amazon’s free FBA Revenue calculator (pictured above).

Opportunity Costs: What does your labor cost you?

When choosing a fulfillment method for your business — Amazon FBM or Amazon FBA — you need to consider the cost of labor. 

As an FBA seller, the cost of labor to ship your products is factored into the FBA fee. FBM sellers, on the other hand, must determine cost of labor by measuring their opportunity costs. (Opportunity costs are a way of estimating costs based on the time spent on an activity.) 

The easiest way to estimate opportunity costs is to estimate what you would be paid on an hourly basis as an employee and then multiply that by the amount of time it takes you to perform the action. 

For example, if you earn $40/hour at your day job and it takes you 10 minutes to fulfill a product that you sold on Amazon, the opportunity cost is $6.67. 

So, while you aren’t actually paying a fee or paying someone else, it is costing you time, which costs you money.

Back to Top

 

Miscellaneous service fees

The last group of fees mentioned in this article are fees that only a few sellers must pay. These fees are paid regardless if you are an Amazon FBA or FBM seller.

Closing fees

Media products such as books, DVDs, CDs, and Blu-Ray, come with a flat $1.80 fee per sale, and only sellers who focus on selling these products need to worry about these fees. 

Like the referral fee, the closing fees are deducted from the proceeds of the sale so you do not need to pay these fees in advance.

High-volume listing fee

Sellers with thousands of ASINs may be required to pay a monthly flat fee of $0.005 per eligible ASIN. But, unless you have more than 100,000 products listed, you won’t have to worry about these fees. 

High volume listing fees are paid at the same time as FBA storage fees. These fees are deducted from your Amazon account balance. If you don’t have funds in your account balance, then the amount is deducted from your credit card.

Rental book service fees

Sellers who rent textbooks on Amazon must pay a $5.00 rental book service fee for each textbook rental that they sell. 

Like referral fees, rental book service fees are deducted at the time of a sale and you will not need to pay these fees in advance.

Back to Top

 

How have Amazon’s fees affected your business? Were they a deciding factor in whether or not you chose to sell a specific product? Let us know in the comments below!

 

Sharing is caring!

17 comments on “Amazon FBA Fees, How They Work, and How to Profit as a Seller

  1. this is exactly the details i was looking for in my google search for amazon fba summary. the fees seem pretty high on your $30 item, nearly 50%, they make far more money than the guy who takes the risk buying the inventory.

    1. Robert,

      It depends on the item. Usually the fees come out to around 25-30% if you include the FBA fee. But the FBA fee shouldn’t be thought of as a fee more than it’s the shipping cost you’d have to pay either way.

  2. HI,

    Thank you for such valuable information put all together. Appreciate a lot!!! I am not being able to proceed from product listing. I asked for GTIN exemption for my product and was approved for the same. NOw when I try to list my product, Amazon does not allow it and keeps on saying product information missing (but does not specifies what kind of information). Its been a month since I tried to list the product. It is in the draft but I could not complete it. My product is also provided with an SKU number. Now, I feel like I am nowhere. If you know something, please help me.

    1. Hey Sha,

      Sorry to hear about the issue. Hopefully we can help. Where did you purchase your UPC? We’re finding more and more that UPCs not purchased through GS1 are being rejected by Amazon.

      If the issue persists, contact our Customer Success team here on Jungle Scout and they can help you navigate the issue.

  3. Great Value!! Thank you for taking the time to put this article together. It was an easy read with lots of helpful tips to understand the FBA program.

  4. Hi i want to know when i sell product on amazon fba should i pay all the fba fees before i start selling or amazon will automatically substruct the fba fees after every purchase .
    Thank you for response

    1. Hi Jhon,

      Great question!

      The only fee you’ll pay ahead of time is Amazon’s subscription fee if you’re listed as a professional seller. Otherwise, the fees are subtracted from the purchases and taken out of the amount they award you every two weeks.

      Hope that’s helpful.

  5. Hi, thanks for the post – very useful information. The illustration given above on 300 standard size items being sold per month, the FBA fee has been shown as 975$ which means 3.25$ per unit, which is in contrast with the information of 2.41$ per unit in the given table. Am i missing something?
    Also, the storage fee, is it charged only after a unit has been sitting in warehouse for full 30 days or is it also charged on the unit which was sold on day 1? Thanks.

  6. Great breakdown.
    I especially appreciate that you wrote “net revenue” and not “net profit” which is the terms that gets thrown around way too much and causes a false picture of how much the profit really is.

    Since net profit is after operating expenses and after taxes, it’s a very important distinction because I’ve seen a lot of sellers things they will “net” 35% but after paying for other expenses and taxes, they are either breaking even or losing money.

  7. I find this post to be very informative and feel that due to Amazon seller’s confusion and/or being misinformed regarding Amazon Seller fees, many sellers just avoid the entire selling platform or just sell as a “hobby.” I’ve been guilty of this myself as it’s way too confusing to me so I’ve just sold intermittently on Amazon and eBay. Thanks for posting this, it IS VERY HELPFUL.

Leave a Reply

Your email address will not be published. Required fields are marked *

shares