Selling on Amazon remains one of the most powerful ways to reach millions of online shoppers, and understanding the platform’s complex fee structure is key to maintaining profitability. In this article, I discuss the various fees involved in selling on Amazon, provide an overview of how to calculate for said fees, and offer some tips on managing and minimizing them.
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Key takeaways:
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Amazon seller fees fall into three main categories: 1) account fees, which vary depending on whether you choose an Individual or Professional selling plan; 2) sale-related fees, which include referral and closing fees; and 3) fulfillment and shipping fees, which depend on whether you use Fulfillment by Amazon (FBA) or fulfill orders yourself (FBM). Amazon sends payments every 14 days and holds funds from each sale for seven days after delivery. These then take three to five days for funds to reach your bank.
2025 update: No new FBA or referral fees, targeted reductions aheadThis year, Amazon announced that it is keeping US referral and FBA fees unchanged and will not introduce any new fee types. Instead, it’s focusing on lowering specific costs and streamlining seller operations. Here is a summary of Amazon’s announcement on its key changes:
Amazon said it will also improve fee tools and inbound workflows to help sellers better estimate and manage shipping costs. |
Amazon seller account fees
Amazon offers two main selling plans — Individual and Professional — to support sellers at different stages. Each plan comes with a tailored set of tools, pricing structures, and optional programs. You can switch or cancel your plan at any time based on your evolving needs.
- Individual plan (no monthly fee, $0.99 per item sold): Best for sellers listing fewer than 40 items per month who don’t need advanced tools
- Access to Seller University and Help pages
- Support from Amazon Seller Support
- List and manage inventory one product at a time
- Set static prices
- Use basic tools like the Revenue Calculator and Amazon Seller App
- Manage seller-fulfilled orders
- Apply to sell restricted products
- Professional plan ($39.99 per month, no per-item fee): Best for high-volume sellers who need bulk listing tools, brand-building features, and access to promotional programs
- All features in the Individual plan, plus:
- List and manage products and inventory in bulk
- Set dynamic prices
- Add multiple users to your seller account
- Build brand presence with enhanced listings and a branded storefront
- Access B2B tools and business reports
- Compete for the Featured Offer
- Create promotions and coupons
- Integrate with selling apps via SP-API
- Participate in programs like Global Selling, Local Selling, and Renewed
- Set custom shipping rates for non-media products
Choosing the right plan: Cost scenarios
Selecting the right Amazon selling plan depends on your monthly sales volume and can affect your overall profitability. Here are two example scenarios to help illustrate the cost differences. Take note that referral fees are not included in these calculations, as they apply equally to both plans.
Case 1: A seller lists 30 items per month priced at $18 each. With the Individual plan, the per-item fee of $0.99 totals $29.70 in monthly costs. The Professional plan, at $39.99 per month, would end up costing more in this case, so the Individual plan is the better choice for a low-volume seller like in this case.
Case 2: A seller moves 80 items per month at $28 each. The Individual plan would cost $79.20 in monthly fees, while the Professional plan remains a flat $39.99. In this case, the seller would save nearly $40 by choosing the Professional plan, making it the smarter option once a seller’s monthly sales volume climbs above the 40-item mark.
Amazon sale-related fees
When you sell a product on Amazon, multiple fees are deducted from your earnings, most of which are applied at the time of sale. These sale-related fees are classified by Amazon as core fees and include referral charges, closing fees, and per-item costs. These fees typically have the greatest impact on your profitability. Other fees, such as refund administration or high-volume listing fees, may apply in specific cases but aren’t charged as consistently.
| Referral fee | Typically 8%-15% (up to 45% in some categories) | Total sales price (item + shipping + gift wrap, excluding tax) |
| Per-item fee | $0.99 per item sold | Each unit sold (Individual plan only) |
| Closing fee | $1.80 per item | Units sold in media categories |
| Refund administration fee | Lesser of $5.00 or 20% of the referral fee | Referral fee amount refunded |
| High-volume listing fee | $0.001 per SKU per month (after 1.5 million SKUs) | Total number of eligible SKUs above 1.5 million |
Referral fee
Referral fees are charged on every item sold and are calculated as a percentage of the total sales price, which includes the item price, shipping, and gift wrapping, but excludes taxes calculated by Amazon’s tax service. These fees vary by product category and typically range from 8% to 15%, though some categories have higher or tiered rates.
- Time of charge: Time of sale
- Fee structure: Per unit sold
- Rate basis: Total sales price per unit sold
Here are the referral fee ranges per product category.
| Amazon Device Accessories | 45% |
| Appliances – Compact & Others | 15% up to $300, then 8% |
| Appliances – Full-size | 8% |
| Automotive & Powersports, Business/Industrial, Tools | 12–15% depending on category |
| Baby, Beauty, Grocery, Home & Kitchen, etc. | 8% for lower-priced items, then 15% for higher-priced items |
| Clothing & Accessories | 5% for ≤ $15 10% for $15–$20 17% for > $20 |
| Electronics (Computers, Consumer Electronics) | 8% |
| Electronics Accessories | 15% up to $100, then 8% beyond |
| Eyewear | 15% |
| Fine Art | 20% up to $100 15% up to $1,000 10% up to $5,000 5% above $5,000 |
| Furniture | 15% up to $200, then 10% beyond |
| Jewelry | 20% up to $250, then 5% beyond |
| Lawn equipment, Luggage, Office & Pet Supplies, etc. | 15% |
| Mattresses | 15% |
| Media (Books, DVDs, Software, Video Games) | 15% |
| Sports & Outdoors, Toys & Games | 15% |
| Tires, Watches | Tires: 10% Watches: 16% up to $1,500, then 3% beyond |
| Everything Else (uncategorized items) | 15% |
Understanding Amazon’s referral fee minimum amount
In addition to charging a percentage of each sale as a referral fee, Amazon also enforces a minimum referral fee per item — usually $0.30. This ensures that Amazon collects a baseline fee even if your item is low-cost or heavily discounted.
Amazon calculates the referral fee for each product sold in two ways. First, it applies a percentage-based fee to the total sales price, which includes the item price, shipping charges, and any gift wrap. Second, if the calculated percentage fee is lower than a set threshold, Amazon applies a fixed minimum referral fee instead. The higher of the two amounts is charged.
Example: Here’s how Amazon calculates a referral fee:
You sell a kitchen gadget for $20, and the product category has a 15% referral fee.
- Total sales price: $20
- Referral fee (15% of $20): $3.00
Since $3.00 exceeds the typical $0.30 minimum referral fee, Amazon charges the percentage-based amount.
Final referral fee deducted: $3.00
If the sales price had been low — say, $1.50 — the 15% referral fee would be just $0.225, which is below the minimum. In that case, Amazon would charge the minimum $0.30 instead.
Per-item selling fee
This fee applies only to sellers on the Individual Selling Plan and is set at $0.99 per item sold. It’s charged in addition to referral fees and any applicable closing or shipping-related charges. Sellers on the Professional Plan are exempt from this fee, which can make a big difference in profitability once monthly sales exceed 40 units.
Example: You’re on the Individual Selling Plan and sell 35 items in a month. At $0.99 per item, your total per-item selling fees would be:
35 items × $0.99 per-item fee = $34.65 total in per-item fees
This amount is charged in addition to any referral or shipping fees. If you were on the Professional Plan instead, you’d pay a flat $39.99 monthly fee but no per-item charges — meaning you’d only spend an extra $5.34 that month for more advanced tools and features. Once your monthly sales go above 40 items, the Professional Plan becomes more cost-effective.
Closing fee
A fixed $1.80 closing fee is charged per unit sold in select media categories, including Books, DVDs, Music, Software & Computer/Video Games, Video Game Consoles, and Video Game Accessories. This is added on top of referral fees and applies to both Individual and Professional sellers.
High-volume listing fee
If you maintain more than 1.5 million SKUs in your Amazon catalog, Amazon applies a $0.001 monthly fee per additional SKU. This fee covers the system costs of cataloging and maintaining large inventories. For instance, a seller with 1.6 million SKUs would be charged $100 per month for the extra 100,000 SKUs. The count is based on your highest number of SKUs between the 5th and 31st of each month.
Refund administration fee
When you refund a customer for an item they’ve already paid for, Amazon refunds the referral fee minus a refund administration fee, which is the lesser of $5.00 or 20% of the original referral fee. For example, if an item has a $1.50 referral fee, the refund administration fee would be $0.30. This fee applies regardless of whether the item is returned or simply refunded.
Example computation of Amazon sale-related fees
To illustrate how these fees are calculated, here are examples of Amazon products (media and non-media) with pricing and related fees broken down.
Selling a $25 media item as an Individual seller
This scenario covers the sale of a media product (like a book or DVD) under the Individual Selling Plan at a price of $25. Media categories incur an additional closing fee, which is important to factor in.
Fee breakdown:
| Referral fee | 15% | ||
| Per-item fee | $0.99 | ||
| Closing fee (media only) | $1.80 per item | ||
| Subscription fee | Not applicable (Individual plan) | ||
| Total fees per item | |||
| Net payout per item |
If the buyer returns the item and you issue a refund:
- Referral fee originally charged: $3.75
- Refund administration fee: 20% of $3.75 = $0.75
- Amazon refunds you: $3.00 of the referral fee, retaining $0.75
Selling a $40 kitchen item as a Professional seller
Here’s how Amazon’s sale-related fees apply when selling a non-media product, like a kitchen gadget, under the Professional Selling Plan at a price of $39.99.
Fee breakdown:
| Referral fee | 15% | 15% of $40 | |
| Per-item fee | Not applicable | Professional sellers are exempt | |
| Closing fee | Not applicable (non-media) | N/A | |
| Subscription fee (flat) | $39.99/month | Monthly business cost | |
| Total fees per item | |||
| Net payout per item | $40 – $6.00 |
If the buyer later returns the item and you issue a refund:
- Referral fee originally paid: $6.00
- Refund administration fee: 20% of $6.00 = $1.20
- Amazon refunds you: $4.80 of the referral fee
Amazon fulfillment and shipping fees
Fulfillment by Amazon (FBA) makes it easy to outsource order handling, packaging, and shipping, but it comes with its own set of fees that impact your margins. These charges include per-unit fulfillment fees, storage costs, and optional service fees like disposal and removal.
FBA fulfillment fees
Fulfillment by Amazon (FBA), often referred to as the “pick and pack” fee, charges a per-unit fee each time a product is picked, packed, and shipped to a customer. Amazon uses a combination of metrics to determine this fee, including product size tier (based on dimensions and weight), shipping weight, and whether dimensional weight applies. Dimensional weight is a calculation of the volumetric weight of a package, using the package’s length, width, and height.
- Time of charge: When the buyer’s order is shipped
- Fee structure: Per unit fulfilled
- Rate basis: Product category, size tier, and shipping weight
The table you see shows the 2025 fee ranges for two main categories — apparel and non-apparel — within the standard-size tiers. You can refer to the complete table in Amazon’s FBA fulfillment fees page.
| Small standard | |||
| Large standard | |||
| Large standard |
Where dimensional weight applies
For larger but lightweight items, Amazon may use dimensional weight (dim weight) instead of actual weight to calculate fulfillment fees. This is particularly relevant for large standard-size items weighing over 1 lb, where packaging bulk adds cost even if the product is light. Amazon calculates the dim weight using the formula:
Dim weight (in lb) = (Length × Width × Height) ÷ 139
If this dim weight exceeds the actual weight, Amazon uses it as the shipping weight to determine your fee. This primarily affects the large standard-size range, especially items weighing over 1 lb up to 3 lb, where dimensional weight may push your product into a higher fee bracket. It becomes even more significant in the 3+ to 20 lb tier, where Amazon applies per-unit surcharges based on weight intervals.
For example, a pillow weighs 2 lb but is packaged in a bulky box measuring 20″ × 18″ × 12″.
- Dim weight = (20 × 18 × 12) ÷ 139 ≈ 31.0 lb
- Amazon charges based on 31 lb, not 2 lb, pushing this item into a much higher pricing tier; even though it’s light.
Dimensional weight charges can dramatically increase fulfillment fees if you’re not accounting for packaging dimensions. To avoid surprises, check both your actual and dimensional weight when estimating fulfillment costs, especially for soft goods, home products, or anything that ships in large boxes.
Examples on how to calculate for FBA fulfillment fees
I included three examples of Amazon products so you can see how it is categorized by size tier and whether Amazon will apply the dim weight or go with the shipping weight. The fulfillment fee rates are based on the fulfillment table Amazon has on its website.
| Large standard size | |
|---|---|
 |
T-shirt (Apparel)
(The greater of unit weight or dimensional weight will be applied.) |
| Fulfillment fee (Apparel, 8+ to 12 oz): | $4.67 |
- Amazon compares unit weight (5.4 oz) and dim weight (11.45 oz).
- Since 11.45 oz > 5.4 oz, the shipping weight is rounded up within the 8+ to 12 oz range.
- According to the 2025 FBA apparel table, this range falls under the $4.67 fulfillment fee.
| Large standard size | |
|---|---|
 |
Bluetooth Speaker (Non-Apparel)
(The greater of unit weight or dimensional weight will be applied.) |
| Fulfillment fee (Non-Apparell, 12+ to 16 oz): | $4.55 |
- Amazon compares unit weight (15.6 oz) and dimensional weight (4.87 oz).
- Since 15.6 oz > 4.87 oz, the unit weight is used as the shipping weight. This places the item in the 12+ to 16 oz range.
- According to the 2025 FBA non-apparel table, this range falls under the $4.55 fulfillment fee.
Monthly inventory storage fees
Amazon charges a monthly fee for the space your inventory occupies in its fulfillment centers. This fee is based on your daily average volume in cubic feet, measured using the packaged size of each unit. The total storage fee includes a base fee and, if applicable, a storage utilization surcharge. Additional rates apply for dangerous goods.
- Time of charge: Monthly (typically between the 7th and 15th of the following month)
- Fee components: Base monthly storage fee + storage utilization surcharge (if applicable)
- Fee structure: Per cubic foot of storage, based on product size tier, season, and utilization ratio
To calculate fees, Amazon uses this formula:
Fee per product = average daily units x volume per unit x applicable rate
Amazon uses the following to determine your storage fees:
- Product size tier: Based on dimensions and weight of a fully packaged item.
- Time of year: Higher rates apply October–December due to peak season.
- Product volume: Total volume in cubic feet (L × W × H, fully packaged).
- Average daily inventory units: Average quantity of units stored per day in the month.
- Storage utilization ratio: Calculated as inventory stored ÷ inventory shipped over the last 13 weeks. A surcharge applies if this ratio exceeds 22 weeks and other criteria are met.
- Dangerous goods status: Items classified as hazardous are charged separately under FBA’s Dangerous Goods program.
Program-specific variations may apply if your inventory is part of programs like FBA Dangerous Goods, or if you’re enrolled in New Seller Incentives or FBA New Selection. Here’s a simplified comparison table showing total monthly storage fees per cubic foot for standard-size and oversize items (non-dangerous goods) across peak (October–December) and non-peak (January–September) periods. You can also refer to Amazon’s full list of monthly inventory storage fees.
| Below 22 weeks | ||||
| 22–52 weeks | ||||
| 52+ weeks | ||||
| New sellers / Low volume |
Example computation of monthly inventory storage fees
Scenario #1: A small apparel brand stores 60 units of a lightweight standard-size accessory, each measuring 0.08 cubic feet, through FBA during August (off-peak). The seller recently launched and does not meet Amazon’s criteria for the storage utilization surcharge, keeping monthly fees minimal.
- Size tier: Standard size
- Storage utilization ratio: 18 weeks
- Current month: August
- Volume per unit: 0.08 cubic feet
- Average daily units in storage: 60
- Average daily units aged above 30 days: 0
- Dangerous goods classification: Not a dangerous good
Fee calculation:
- Base fee = 60 × 0.08 × $0.78 = $3.74
- Storage utilization surcharge = $0.00
- Total monthly storage fees = $3.74
Scenario #2: A more established electronics brand has 60 Bluetooth speakers in storage through August, with 25 units sitting longer than 30 days. Because the seller meets the surcharge criteria and the storage utilization ratio has reached 33 weeks, an additional fee applies.
- Size tier: Standard size
- Storage utilization ratio: 33 weeks
- Current month: August
- Volume per unit: 0.08 cubic feet
- Average daily units in storage: 60
- Average daily units aged above 30 days: 25
- Dangerous goods classification: Not a dangerous good
Fee calculation:
- Base fee = 60 × 0.08 × $0.78 = $3.74
- Storage utilization surcharge = 25 × 0.08 × $0.76 = $1.52
- Total monthly storage fees = $5.26
Aged inventory surcharge
The aged inventory surcharge, previously called the long-term storage fee, is a monthly charge applied to any inventory stored in Amazon fulfillment centers for more than 180 days. This surcharge is in addition to the standard monthly inventory storage fees.
Amazon uses a first-in, first-out system to track inventory age. When a product sells or is removed, Amazon deducts it from the oldest inventory in your fulfillment network, even if the shipped unit was recently received. This means inventory age is managed at the account level, not by specific warehouse or item.
- When it applies: Any inventory stored for more than 180 days.
- How it’s assessed: Amazon takes an inventory snapshot on the 15th of each month.
- When it’s charged: Monthly, typically between the 18th and 22nd.
- Fee layering: This surcharge is added on top of monthly inventory storage fees.
Here is the aged inventory surcharge rates as of February 15, 2024:
| 181-210 days | $0.50 per cubic foot |
| 211-240 days | $1.00 per cubic foot |
| 241-270 days | $1.50 per cubic foot |
| 271-300 days | $5.45 per cubic foot |
| 301-330 days | $5.70 per cubic foot |
| 331-365 days | $5.90 per cubic foot |
| 366 days or more | $6.90 per cubic foot or $0.15 per unit, whichever is greater |
FBA disposal order fees
Disposal fees are charged when you ask Amazon to discard items stored in its fulfillment centers. This applies on a per-unit basis and is based on the item’s shipping weight. You can alternatively request a removal order to have the item returned to you instead. Fees are assessed once the disposal order is completed.
The per-unit disposal fee varies by size tier and shipping weight. Large bulky, extra-large, and special handling items (such as apparel, shoes, jewelry, or hazardous goods) are charged higher rates due to increased handling and processing.
- Time of charge: When the disposal order is complete.
- Fee structure: One-time fee per unit disposed. Rates are based on the item’s shipping weight.
FBA disposal order fees range from $1.04 to over $14.32 per unit, depending on the item’s size tier and shipping weight. Standard-size items start at $1.04 for units under 0.5 lb, while large bulky, extra-large, or special handling items, like apparel or hazardous goods, can exceed $14.32 for units over 10 lb, with additional surcharges per pound above the weight threshold.
Comparison with other e-commerce platforms and online marketplaces
Amazon offers vast reach and built-in customer trust, but its layered fee structure can quickly eat into margins—especially when you factor in referral fees, fulfillment charges, and storage costs. Sellers exploring other platforms should consider how Amazon’s pricing model compares to alternatives like Etsy and Shopify. Depending on your product type, volume, and branding goals, the cost to sell on Amazon may be justified, or you may find better margins on a more flexible alternative. The table below highlights how Amazon’s seller pricing compares to key competitors.
| Platform | |||
|---|---|---|---|
| Amazon | $0.99/item or $39.99/month | 8%-45% referral fees | FBA or FBM |
| Etsy | $0.20 per listing | 6.5% + payment processing | Self-fulfilled |
| Shopify | Starts at $39/month, no listing fees | 2.9% + $0.30 (Shopify Payments) | 3PL or self-fulfilled |
Unlike marketplaces, Shopify lets sellers own their storefront and control more of their fee exposure. Instead of paying per-item commissions, sellers pay a flat monthly subscription and optional app or payment processing fees. This model offers better margin predictability and more flexibility in branding, design, and customer retention strategies.
That said, Amazon’s scale and fulfillment network still offer clear advantages. For sellers looking to bridge both worlds, Shopify’s native Amazon integration allows centralized management of product listings, orders, and inventory. This setup can simplify operations while providing visibility into cumulative fees for Amazon sellers and Shopify costs, making it easier to track profitability across channels. You can sign up for Shopify under a three-day free trial, and extend for $1 per month for three months.
How to estimate your Amazon seller fees
Before listing products, it’s crucial to estimate your total Amazon seller cost to avoid unexpected expenses and protect your margins. It also helps you price your items more strategically. Amazon provides several tools to help you forecast fees based on fulfillment channel, product type, and pricing strategy. Use these tools to calculate your costs. All of these can be found in your Seller Central dashboard:
- Revenue Calculator: Estimates referral, fulfillment, and storage fees based on your product’s price, size, and fulfillment method (FBA or FBM).
- Fee Preview Report: Shows estimated selling and fulfillment fees for your current product listings.
- Estimated Fee per Unit Sold: Provides projected core fees for each SKU when a unit sells.
- Referral Fee Preview Report: Breaks down expected referral fees based on your current price listings.
- GetMyFeesEstimate API: Returns fee estimates for multiple products via API — ideal for developers or high-volume sellers.
Here’s a straightforward way to estimate your costs and determine your potential return:
- Set your target selling price: Start with the price you plan to charge on Amazon, including shipping if you offer it.
2. Apply the referral fee: Calculate the percentage Amazon takes based on your product’s category — most fall between 8% and 15%.
3. Add fulfillment costs: If you’re using FBA, figure in the per-unit fee based on your item’s size tier and weight. For apparel or oversized items, expect slightly higher charges.
4. Factor in storage charges: If your product will be stored in Amazon’s warehouses, include monthly storage fees, especially during the high-rate holiday season.
5. Subtract total fees from your sale price: What’s left after fees is your per-unit profit. This gives you a clear view of your expected ROI and helps you evaluate whether your pricing supports long-term margins.
This framework will help you quickly assess the profitability of each product listing and identify opportunities to improve margins by adjusting size, price, fulfillment method, or packaging. Amazon also has a profitability calculator tool that you can use.
Tips for managing and minimizing Amazon seller fees
Managing your fees for Amazon seller accounts requires more than just listing smart — it involves inventory, pricing, and fulfillment strategy. Here are ways to keep your costs in check:
- Keep packaging lean: Trim size and weight to lower fulfillment and storage tiers.
- Clear slow inventory: Avoid aged inventory surcharges with proactive removals.
- Bundle SKUs: Raise average order value to improve fee efficiency.
- Use available discounts: Enroll in New Seller Incentives or FBA New Selection to offset fulfillment costs.
- Review your pricing and fulfillment plan regularly: What worked at 100 orders/month might not work at 1,000.
FAQs
Do I pay FBA and referral fees together?
Yes. If you use FBA, you’ll be charged both fulfillment and referral fees for each sale.
Are there other hidden costs to selling on Amazon?
You may encounter refund administration fees, removal or disposal charges, high-volume listing fees, or inbound placement costs—especially for FBA.
How can I lower my Amazon fees?
Keep your inventory lean, optimize packaging, monitor dimensional weight, and regularly review fee reports.
