Selling on Amazon is one of the most accessible ways to start or scale an e-commerce business, but understanding how much it actually costs is essential. Between referral fees, fulfillment costs, and a range of optional services, the fees can quickly add up and eat into your profits if you’re not careful.
In this guide, we’ll break down how your account type affects your fees, the referral fee percentages that go to Amazon depending on your product category, and how fulfillment options affect your fees and net profit.
Amazon Seller Account Types
Before we get into referral fees for products, let’s begin with the two types of selling accounts: individual and professional. Your choice will affect how you’re charged and the tools you can access.
Individual Seller Account
- Best For: Occasional sellers or hobbyists
- Monthly Fee: $0
- Per-Item Fee: $0.99 per item sold
- Tools: Limited access to advanced reports and advertising
If you’re still getting the hang of product development and selling, or you’re planning to sell fewer than 40 items per month, this might be the right fit to start.
Professional Seller Account
- Best For: Full-time sellers or those planning to scale
- Monthly Fee: $39.99
- Per-Item Fee: None
- Tools: Full access to reports, bulk listing, promotions, advertising
If you consistently sell more than 40 items per month, the professional plan becomes more economical.
Amazon Referral Fees (Commission on Sales)
Every time you make a sale, Amazon takes a referral fee, which is a percentage of the product’s total sales price that includes shipping, if applicable.
Referral fees are charged regardless of whether you use FBA or FBM. Most categories range between 8% and 15%, though some can be higher. Here’s a look at common referral fee percentages:
| Product Category | Referral Fee |
| Electronics | 8% |
| Toys & Games | 15% |
| Clothing & Accessories | 17% (if product sales price > $20), but 5% under $15, and 10% between $15–$20. |
| Beauty Products | 8%–15% |
| Books | 15% |
| Jewelry | 20% for product sales price up to $250, then 5% above $250 |
| Amazon Device Accessories | 45% |
Note that some categories also include a minimum referral fee (usually around $0.30 to $1.00), which you’ll be charged if the percentage fee would otherwise be too low. So, for example, if you’re selling a $25 book, here’s how you would compute the referral fee:
- Sale Price: $25
- Referral Fee (15%): $3.75
- Amount You Keep (before other fees): $21.25
Fulfillment Options and Their Costs
You can choose to fulfill orders yourself (FBM) or let Amazon handle everything via FBA. Let’s quickly break down the fees associated with each option:
Fulfillment by Amazon (FBA)
With FBA, you send your inventory to Amazon’s warehouse, and they take care of:
- Storing
- Picking and packing
- Shipping
- Customer service
- Returns
FBA Fulfillment Fees (2025 Standard Size, U.S. Sellers)
| Category | Item Type | Weight Range | Fee (Approx.) |
| Standard-Size | Non-Apparel | Up to 3 lb | $2.29 – $6.15 |
| Over 3 lb | $6.15 + ~$0.08 per 4 oz over 3 lb | ||
| Standard-Size | Apparel | Any (up to 3 lb) | ~$0.38–$0.40 more per tier than above |
| Oversize / Bulky | Large Bulky (≤ 50 lb) | Base rate | ~$8.84 + $0.38/lb over first pound |
| Extra-Large Tiers | Varies (based on size) | From ~$25.56 + $0.38–$0.75 per lb |
Inbound Placement Service Fee (2025 Update)
Starting January 15, 2025, Amazon introduced changes to its Inbound Placement Service Fee structure that affect how much you pay to send inventory to fulfillment centers, especially for large or bulky products.
An inbound placement service fee is charged when you create an FBA shipment and Amazon splits your inventory across multiple fulfillment centers. Amazon distributes your products for faster delivery across regions, but it comes at a cost, particularly for heavier or oversized items. Now, large bulky shipments now cost approximately $0.58 less per unit when fewer shipment splits are required.
To control or reduce your inbound placement fees:
- Use Amazon’s Inventory Placement Service (IPS) settings to manage how inventory is distributed.
- Consolidate shipments when possible to fewer fulfillment centers.
- Enroll new ASINs in the FBA New Selection program to take advantage of fee waivers and benefits.
Fulfillment by Merchant (FBM)
FBM sellers handle storage, packing, and shipping themselves. If you’re selling FBM, you’ll need to cover:
- Shipping materials
- Shipping costs
- Storage space (whether your own warehouse or home)
- Time for packing & handling
- Customer support
FBM can be cost-effective if you have your own logistics or sell bulky/slow-moving items that would rack up storage fees under FBA.
Amazon Storage Fees (FBA Only)
FBA sellers pay monthly inventory storage fees based on how much space their products occupy.
Monthly Inventory Storage Fees (2025 U.S.)
| Product Size | Jan–Sep | Oct–Dec |
| Standard | $0.87/cu ft | $2.40/cu ft |
| Oversize | $0.56/cu ft | $1.40/cu ft |
Long-Term Storage Fees
If products stay in Amazon’s warehouse for over 365 days, you’re charged an additional aged inventory surcharge:
- Fee: $6.90 per cubic foot or $0.15 per unit, whichever is higher.
Not sure what items are causing you to incur this fee? Use Amazon’s inventory age report to keep tabs on old stock and set up automated removals to avoid long-term fees.
Other Core Amazon Fees
Apart from charging a small fee per sold item and storage and fulfillment fees, Amazon will also charge you the following costs as part of running the platform:
Closing Fees
For media products (like books, DVDs, music, video games), Amazon charges a closing fee on top of the referral fee.
- Flat Rate: $1.80 per item
Refund Administration Fees
If you refund a customer, Amazon still keeps a portion of the referral fee.
- Fee: $5.00 or 20% of the referral fee, whichever is less.
Let’s say, for example, you have a product where the original referral fee is $3.00. The refund fee kept by Amazon will be $0.60 (20% of $3). You’re refunded $2.40 of the referral fee.
Optional Fees That Can Add Up
There are additional fees that you can incur if you choose to, related to advertising or packaging. But if you want to save a bit first, you can opt out of these fees:
Labeling Fee
If your products require barcode labeling and you want Amazon to do it:
- Fee: $0.30 per unit
Worried that this cost will add up? You can avoid this by printing and applying barcodes yourself before shipping to FBA.
Prep Service Fee
Amazon offers a service to prepare your products for shipment, including bubble wrapping, bagging, or taping.
- Fee Range: $1.00 to $2.30 per unit
Advertising Costs
While optional, advertising can be essential for driving sales.
- Sponsored Products: Pay-per-click (PPC)
- Typical CPC (Cost Per Click): $0.20 to $2.00+ depending on category
Many intermediate sellers spend 10%–15% of revenue on ads, especially when launching products.
Example Breakdown: Selling a $20 Phone Case with FBA
Let’s walk through a full cost example so you can see how fees affect your profit per sold unit of a product listing.
| Description | Amount |
| Sale Price | $20.00 |
| Referral Fee (15%) | $3.00 |
| FBA Fulfillment Fee | $3.22 |
| Monthly Storage Fee | $0.05 |
| Product Cost | $3.50 |
| PPC Advertising | $2.00 |
| Net Profit | $8.23 |
This example shows how important it is to track every fee, especially when launching a product with ad spend.
High-Volume Listing Fee (Niche)
Amazon charges sellers a high-volume listing fee of $0.001 per SKU per month for every active non-media listing that exceeds 1.5 million SKUs. This is a specialized fee that applies to Amazon sellers with extremely large product catalogs.
While this doesn’t affect most small or medium sellers, it’s worth knowing if you manage tens or hundreds of thousands of SKUs, especially if you’re in a business model like dropshipping, wholesale, or print-on-demand.
Hidden or Easily Overlooked Fees
Even experienced Amazon sellers can be caught off guard by lesser-known or less-visible fees. These fees may not show up prominently in your regular reports but can quietly eat away at your profit margins if you’re not paying attention:
Unplanned Service Fees
These fees occur when your inbound FBA shipments don’t meet Amazon’s strict packaging, labeling, or prep requirements. These can be triggered by:
- Missing or incorrect barcodes (UPC, FNSKU)
- Items that arrive without required polybags, bubble wrap, or taping
- Not following case pack quantity guidelines
- Mixed SKUs in the same box without proper labeling
When this happens, Amazon will fix the problem for you, but they’ll charge you for it. Typically you’ll be charged $1.00 to $2.00 per unit. For labeling fixes, you’ll be charged $0.30/unit, and for prep issues like bagging, you’ll be charged $1.00–$2.30/unit depending on the type of issue.
Carefully follow Amazon’s FBA Prep and Labeling Guidelines and use FBA prep checklists during packing. If you use a 3PL (third-party logistics provider), ensure they’re familiar with Amazon’s requirements.
Returns Processing Fees
In some product categories like apparel, shoes, jewelry, and watches, Amazon charges a returns processing fee for customer returns. The returns processing fee is typically equal to the original FBA fulfillment fee for that item.
Currency Conversion Fees (for International Sellers)
If you’re an international seller and receive payments in a non-USD bank account, Amazon automatically converts your earnings to your local currency using its Amazon Currency Converter for Sellers (ACCS).
Amazon charges a currency conversion fee of up to 2% of the total amount being converted. This fee is baked into the exchange rate, not shown as a line item, so it’s easy to overlook. Compare exchange rates and fees before choosing a payment solution, and withdraw in larger batches to minimize the relative impact of flat or minimum fees
How to Reduce Amazon Seller Fees
Now that you know what fees are affecting your operational costs on Amazon, here are smart strategies to lower costs and boost profitability:
Bundle Products
Bundling multiple low-margin or small items into one product listing can significantly reduce your per-unit costs. You only pay the referral fee once, even if the bundle contains multiple items. What’s more, fulfillment fees are charged per bundle, not per item inside it.
Monitor Inventory Levels
Letting excess inventory pile up in Amazon’s warehouses leads to monthly storage fees and, worse, aged inventory surcharges. Review Amazon’s Inventory Age Report weekly or monthly to identify SKUs at risk of reaching the 365-day threshold.
Then you can use automated removal settings to pull back unsold stock, or you can liquidate stale products via Amazon Outlet Deals or coupon promotions to increase your sell-through rate.
Negotiate with Suppliers
One of the most underused but most effective ways to combat fees is to lower your product costs at the source. Ask for bulk discounts if you’re increasing order volume, or request better payment terms (e.g., net 30, 60) to ease your cash flow.
Remember: Amazon fees are mostly non-negotiable, but your cost of goods sold (COGS) is flexible. Lower COGS means more room for fees and higher net margins.
Optimize Product Size
Amazon FBA fees are heavily influenced by product size and weight tiers. Sometimes a tiny packaging tweak can bump a product into a lower (and cheaper) tier.
Consider repacking an item into a flat mailer instead of a bulky box, or use vacuum sealing for soft goods like clothing or plush toys. By removing excess air or space from bottles, jars, or tubes, you can reduce weight and make it cheaper for you to ship these out.
Track Profit Per SKU
You can’t improve what you don’t measure. Many sellers don’t realize that some products are consistently losing money after fees until they dig into SKU-level data.
To get a better understanding of your net profits and where you can cut costs, monitor your net profit margin per SKU, Ad spend to sales ratio (ACoS), inventory turn rate, and break-even PPC cost per click.
Try these tools to track smarter and adjust your selling strategy accordingly:
- Amazon Revenue Calculator: Manual tool for checking margins before listing
- Sellerboard: Tracks real-time profits, refunds, PPC costs, and long-term trends
- Helium 10 Profits: Shows profit by SKU, ad performance, and trends in a visual dashboard
Conclusion
Amazon fees are unavoidable, but you can keep them down and maximize your profits when you understand how they work. The key is to build them into your product strategy from day one. Always calculate your full cost structure before listing a product, and don’t assume profit just because you’re making sales.
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