How Much Does Amazon Charge to Sell? An Up-To-Date Guide

Understanding the fee structure is crucial when selling on Amazon.This will help maximize your profits and ensure your business remains sustainable.

Amazon charges sellers a variety of fees based on:

• The products they sell,
• The services they use,
• And the type of seller account they hold.

Whether you're a small individual seller or a large-scale business, these fees can significantly impact your bottom line. 

In this article, we'll break down Amazon's core fees, including subscription, referral, and fulfillment fees, to give you a clearer picture of what to expect when selling on the platform.

Types of Amazon seller accounts

When selling on Amazon, you can choose between two types of seller accounts: Individual and Professional. 

Each account type has its own fee structure, features, and suitability, depending on your business goals and sales volume.

Individual seller account

This option is ideal for sellers who plan to sell fewer than 40 items monthly.

There is no monthly subscription fee, but you'll be charged a $0.99 fee per item sold, in addition to referral fees and any other applicable charges.

Professional seller account

This account is suitable for sellers expecting higher volumes. The monthly subscription fee is $39.99, but it doesn't include the per-item fee. 

Professional accounts also provide access to advanced selling tools, bulk listing options, and enhanced reporting, making it the preferred choice for businesses aiming for significant growth.

Choosing the right account depends on your projected sales and business model. 

Evaluating your expected sales volume and business needs before deciding which account works best for you is crucial.

Understanding referral fees and category-based charges

1. Referral fees

Depending on the category, Amazon collects a referral fee on each product sold, which typically ranges from 6% to 15%. 

For instance, electronics might have a referral fee of 8%, while apparel or beauty products might incur a fee closer to 15%. 

Check the specific rate for your product category, as these fees can significantly impact your profit margins.

2. Minimum referral fees

Amazon applies a minimum referral fee in some categories, regardless of the product price. 

For example, in categories like jewelry or personal care, there may be a minimum charge of $1 per item sold. 

This ensures that Amazon receives a baseline commission even for lower-priced items.

3. Category-based charges

Certain product categories come with additional fees or unique pricing structures. 

For instance, media products such as books, music, and DVDs may have different fee schedules compared to physical goods like home appliances or furniture. 

Understanding these category-specific charges is essential to accurately calculate your potential costs when selling on Amazon.

Being aware of the referral fees and category-specific charges helps sellers make informed pricing decisions. This ensures they maintain profitability while factoring in all the costs associated with selling on Amazon.

4. Fulfillment fees

These are charged for each unit sold and cover the costs of picking, packing, shipping, and handling customer service and returns. 

The fees are based on the size and weight of the item. Larger or heavier items will incur higher fees, so it's essential to review Amazon's FBA fulfillment fee table to understand your costs based on product dimensions and weight.

5. Storage fees

Amazon charges monthly storage fees for the products you store in its fulfillment centers. 

The fees are based on the volume of space your products occupy (measured in cubic feet) and vary depending on the time of year. 

Typically, storage fees are higher during peak holiday months (October to December), so sellers should manage inventory efficiently to avoid unnecessary charges.

6. Long-term storage fees

If your products remain in Amazon's warehouses for more than 365 days, they may incur long-term storage fees in addition to the regular monthly fees. 

This fee is applied per cubic foot of inventory and can become expensive. It encourages sellers to manage slow-moving inventory and avoid overstocking.

7. Labeling and prep service fees

Suppose your products require special packaging, labeling, or preparation to meet Amazon's FBA requirements. 

In that case, you can either do this yourself or opt for Amazon's labeling and prep services, which come with additional fees. 

These services save time but add to your overall fulfillment costs.

8. Removal and disposal fees

You'll be charged removal or disposal fees per item if you need to remove or dispose of unsold or outdated inventory from Amazon's warehouses. 

Removal fees are charged when items are returned to you, and disposal fees apply when Amazon disposes of the inventory.

FBA is a powerful tool for scaling your Amazon business, but it's crucial to understand the fees associated with using the service. 

By factoring in these costs, sellers can better assess their profitability and manage inventory more efficiently to avoid unnecessary expenses.

What Are the other costs FBA sellers face?

While Fulfillment by Amazon (FBA) offers sellers convenience and access to Amazon's vast customer base, it's essential to understand not only the obvious fees but also the storage fees and other hidden costs that can impact your overall profitability. 

Here's a breakdown of key fees to be aware of:

1. Unplanned service fees

Amazon has specific packaging and labeling requirements for FBA products. 

Amazon may charge unplanned service fees to correct the issue if your items arrive at the fulfillment center improperly prepped (e.g., missing labels, barcodes, or improper packaging).

These fees can add up, so it's crucial to ensure your products meet FBA requirements before shipping them to Amazon.

2. Returns processing fees

For specific product categories (such as apparel and shoes), sellers are charged a returns processing fee when customers return items. 

This fee is equivalent to the fulfillment fee for that item, meaning sellers bear the cost of the product's initial shipment and the return process.

2. Coverage fees

Amazon may charge overage fees if you send inventory beyond your allocated storage limit.

It's essential to monitor your inventory limits and avoid exceeding them, especially during peak seasons when space is at a premium.

By being mindful of these storage fees and hidden costs, FBA sellers can better manage their expenses and optimize their profit margins.

Keeping a close eye on your inventory turnover and understanding all the associated fees helps prevent unwanted surprises and ensure you make informed decisions about your business.

3. High-volume listing fees

If you manage an extensive catalog of products, Amazon may charge high-volume listing fees. 

Sellers listing more than 100,000 items for sale on Amazon are subject to a monthly fee of $0.005 per active, non-media ASIN (Amazon Standard Identification Number). 

This fee encourages sellers to manage their product listings efficiently and remove inactive or low-demand listings.

4. Amazon advertising fees

Many sellers invest in Amazon's advertising services, such as Sponsored Products, Sponsored Brands, and Sponsored Display, to increase their product visibility. 

These pay-per-click (PPC) campaigns allow sellers to bid for ad placement within Amazon's search results and product pages. 

The costs vary based on the competitiveness of your product category and keywords, and advertising expenses can add up quickly if not monitored closely.

5. Refund administration fees

If a customer returns a product, Amazon may keep a portion of the original referral fee as a refund administration fee. 

Typically, this fee is either $5 or 20% of the referral fee, whichever is lower. 

This charge helps Amazon cover the administrative costs of processing returns, but it can eat into your margins, particularly if your products have a high return rate.

6. International selling fees

If you sell in international Amazon marketplaces, you may incur extra fees, such as currency conversion fees and international fulfillment charges. 

Additionally, shipping and customs costs can increase when fulfilling orders internationally, so it's essential to factor these into your overall pricing strategy.

7. Lightning Deals and promotion fees

Amazon allows sellers to participate in promotional programs like Lightning Deals or Amazon Coupons, which boost product visibility for a limited time. 

However, these promotional campaigns come with participation fees. Lightning Deals, for instance, typically cost around $150 per deal in the U.S. marketplace. While these promotions can drive sales, the costs should be weighed against the potential increase in revenue.

8. Inventory placement fees

FBA sellers can opt to distribute their products across multiple Amazon fulfillment centers. 

While this can help optimize delivery times and improve customer satisfaction, it may also come with an inventory placement fee if your products are not sent to the fulfillment center Amazon prefers. 

Sellers who want to avoid this can choose to ship all inventory to a single fulfillment center, but this may impact delivery speed.

9. Multi-channel fulfillment (MCF) fees

If you use Amazon's fulfillment network (FBA) to fulfill orders from other sales channels, such as your own e-commerce store, you'll incur multi-channel fulfillment fees. 

These fees are typically higher than standard FBA fulfillment fees because Amazon handles order processing, packing, and shipping for non-Amazon orders.

Is Amazon worth the investment for sellers?

Selling on Amazon offers incredible reach and convenience, but the associated fees can significantly impact your profits. 

The platform can be highly profitable for sellers who understand Amazon's fee structure and have a strategy for managing costs.

For those seeking assistance, SellerGrow can help you manage your account and navigate the process without any hassle.

By partnering with SellerGrow, you can better manage costs, streamline operations, and boost profitability, making Amazon a worthwhile investment for your business.