Selling on Amazon can be lucrative, but fees can quickly shrink your profit margins. Referral, fulfillment, and storage costs can add up with every sale, making it harder to maintain profitability. Without a clear grasp of Amazon’s fee structure, sellers risk lower earnings and unexpected financial setbacks.
This guide breaks down Amazon seller fees—what they are, how they’re calculated, and strategies to minimize unnecessary costs. Whether you’re new to selling or a seasoned pro, understanding how these fees impact your bottom line can help you control expenses and maximize revenue.
What are Amazon seller fees?
Amazon charges fees to list, sell, and fulfill orders on its platform, whether you run a small storefront or a large-scale ecommerce business. These costs directly impact profitability, making it essential to understand their structure and impact.
| Factor | Impact on Seller Fees |
|---|---|
| Product category | Different categories have different referral fee rates (e.g., jewelry is 15%, clothing is 5%, computers are 8%). |
| Fulfillment method | FBA (fulfilled by Amazon) typically incurs higher fees than FBM (fulfilled by merchant). |
| Pricing strategy | Discounted products may still have the same percentage-based referral fees, affecting profit margins. |
| Size and weight | Larger or heavier items often carry higher fulfillment and storage fees. |
| Inventory volume | Listing over 1.5 million SKUs results in additional high-volume listing fees. |
| Location | Some regions (e.g., western U.S.) may have higher FBA inbound placement fees. |
| Shipment splits | Inbound placement fees vary based on the number of warehouses used, item size/weight, and type of split (Amazon-optimized, minimal, or partial). |
| Storage | Storage fees depend on product size and type, time of year, and how long inventory remains unsold. |
Individual vs. Professional seller fees
Amazon offers two pricing plans for FBM and FBA: Individual and Professional, each with different cost structures.
- Individual Plan: $0.99 per item sold—best for low-volume sellers with fewer than 40 sales per month
- Professional Plan: $39.99/month—ideal for high-volume sellers or those using advanced tools like bulk listings or advertising
Choosing the right plan can make a significant difference in long-term profitability. If you expect sales to increase beyond 40 items per month, a Professional Plan may be more cost-effective.
Scenario 1: Selling 25 items/month at $20 each = Individual Plan saves you money ($475.25 profit with Individual Plan vs. $460.01 profit with Professional Plan)
Scenario 2: Selling 100 items/month at $35 each = Professional Plan saves you money ($3,460.01 profit with Professional Plan vs. $3,401 profit with Individual Plan)
Types of Amazon seller fees
Amazon provides various features and plans, allowing you to choose the most profitable option for your ecommerce business. However, these come with different seller fees, depending on your fulfillment method, product type, and services used. Below are some of the most common fees sellers should be aware of.
Referral fees
Amazon charges referral fees as a commission for selling on its platform. These fees are a percentage of the total selling price and vary by product category.
To give you an idea of referral fee percentages across different categories, here are a few examples:
Full-size appliances: 8%
Footwear: 15%
Lawn and Garden: 15%
Tires: 10%
Some product categories charge a certain percentage up to a particular amount, then a lower percentage for the remaining amount of the total sales price. (Example: Compact Appliances: 15% up to $300.00 and 8% for the remaining amount)
Minimum referral fees: Some product categories, such as Consumer Electronics and Mattresses, have a minimum referral fee that’s typically $0.30.
PRO TIP: Check Amazon’s referral fees table regularly for updates.
Fulfillment fees
If you use FBA, you’ll also pay fulfillment costs based on size, weight, and storage time.
| Fee Type | Description |
|---|---|
| Pick-and-pack fees | Charged per item based on size, weight, and category—lower fees apply to items priced under $10. |
| Weight-based fees | Larger, heavier products cost more (e.g., a 5-lb. Large Standard product costs more than a 2-oz Small Standard product). |
| Storage fees | Monthly fees vary based on time of year, daily average volume, product size, type of product, and high-volume stored inventory vs. recent weekly sales. |
| Aged inventory fees | Additional charges apply for inventory stored longer than 181 days. |
| Returns processing fees | Amazon covers free return shipping for customers but charges sellers for returns. |
| Removal fees | These are per-item fees for Amazon to liquidate, return, or dispose of unsold inventory. |
| Inbound placement service fees | Costs associated with sending inventory to multiple fulfillment centers for faster shipping—these vary by size, weight, location, and shipment splits. |
The good news? Amazon will not increase fulfillment fees in 2025, but costs can still add up—especially for bulky, fragile, or high-value items.
Want to reduce fulfillment fees? Third-party logistics (3PL) providers like Red Stag Fulfillment help sellers lower costs by offering optimized handling for large or delicate products.
Monthly subscription fees
As mentioned earlier, Amazon’s Individual Plan costs $0.99 per item, while the Professional Plan costs $39.99 per month. When does it make sense to upgrade? Consider switching to the Professional Plan if:
Your business has grown beyond 40 sales per month.
You anticipate consistently higher sales volume rather than occasional spikes for seasonal events or product launches.
You’re using advanced tools like advertising or bulk listing management to help sell your products.
Storage fees
Storing inventory in Amazon fulfillment centers incurs monthly storage fees, which are calculated by cubic feet and vary by season.
| Season | Base fee for standard-size items | Base fee for large/bulky items |
|---|---|---|
| Standard season (Jan-Sept) | $0.78 per cubic foot | $0.56 per cubic foot |
| Peak season (Oct-Dec) | $2.40 per cubic foot | $1.40 per cubic foot |
If inventory remains unsold, you may also face long-term storage fees and/or aged inventory surcharges.
Closing fees
Amazon applies variable closing fees to certain product categories, including:
Books
Music
DVDs
Software and computer/video games
Video game accessories and consoles
For these media items, sellers are charged a fixed closing cost of $1.80 per item sold to account for fulfillment and shipping fees. Sellers who focus on media-related products should factor in closing fees when calculating profitability to make sure they maintain strong profit margins.
High-volume listing fees
If you have more than 1.5 million active SKUs, Amazon charges a high-volume listing fee of $0.0001 per SKU per month. This fee helps cover the costs of managing and supporting large catalog listings on the platform.
If you’re a high-volume seller, these fees may be unavoidable. However, you can minimize unnecessary charges by optimizing your catalog and removing inactive or redundant listings.
Refund administration fees
Offering refunds can help build customer trust and improve satisfaction, but it also comes at a cost for sellers. When a customer returns an item, Amazon refunds only 80% of the original referral fee—not the full amount—for many product types. Over time, these partial fee losses can add up, particularly for businesses with higher return rates.
Some categories—such as books, music, videos, and DVDs—are exempt from refund administration fees. To reduce refund-related costs, monitor return rates and refine product descriptions to minimize unnecessary or avoidable returns.
Advertising fees (optional but important)
While advertising on Amazon is optional, it’s often necessary to stay competitive. Amazon offers several ad options, with some of the more common ones being:
Sponsored ads (product, brands, display, TV)
Display ads
Video ads
Audio ads
Out-of-home ads
Sellers who aren’t enrolled in the Brand Registry can only access Sponsored Products.
Is Amazon advertising worth it? While advertising fees are rising, sellers continue to see a steady return on ad spend (ROAS). Monitor your ROI before making major ad investments.
How to calculate your Amazon fees to estimate profits and ROI
When pricing your products, factor in Amazon fees to help ensure profitability. To calculate your total fees:
01
Determine the product’s sale price.
02
Add the referral fee percentage based on product category.
03
Calculate FBA fulfillment fees based on size and weight.
04
Include storage fees if applicable.
05
Subtract all fees from the sale price to determine net profit.
For precise estimates, use tools like the Amazon FBA Revenue Calculator.
Common challenges sellers face with Amazon fees
Taking time to calculate Amazon fees is a smart move for any seller, as unexpected costs can impact your bottom line. A few key challenges you might encounter when selling your products on Amazon include:
Unexpected costs
New Amazon sellers are often caught off guard by long-term storage charges, refund administration fees, and additional fees that may arise based on product category, fulfillment method, or returns processing.
Understanding Amazon seller fees in advance helps, but ongoing monitoring is key to avoiding surprises. Use Amazon Seller Central’s fee reports to track estimated, current, and future fees, so you can stay informed and manage costs effectively.
Profit erosion
Individual fees may seem minor at first, but they accumulate quickly, cutting deeper into your profits than you might anticipate. In highly competitive product categories like electronics or apparel, these costs escalate even more rapidly, making it challenging to maintain strong profit margins.
However, you don’t have to watch your margins erode. To prevent Amazon fees from cutting into your profitability, consider selling in a niche market with less competition. Diversifying your product categories can also help offset higher fees and stabilize overall profits.
Mismanagement of inventory
Poor inventory management can lead to avoidable Amazon fees that impact profitability. Both overstocking and understocking come with risks:
Overstocking increases storage fees, particularly for oversized items. Long-term storage and aged inventory surcharges can add up quickly.
Understocking results in missed sales opportunities and can even trigger low inventory level fees if stock runs too low to meet demand.
Effective inventory management, on the other hand, helps reduce fees, improve cash flow, and prevent unnecessary penalties.
How to minimize your Amazon seller fees
While you can’t avoid Amazon fees entirely, you can take steps to reduce them. Every penny saved on fees helps boost your bottom line. Here’s how to keep your costs as low as possible.
Use a third-party fulfillment partner
Amazon FBA often comes with higher fees, especially for large, bulky, or fragile items. Partnering with a third-party logistics (3PL) provider like Red Stag Fulfillment can help you cut down on FBA-related fees.
3PLs can help reduce or even eliminate fees like long-term storage or low inventory penalties by improving inventory management. Red Stag specializes in handling oversized and heavy items while optimizing packaging to minimize dimensional weight charges—further lowering fulfillment costs.
NOTE: See how Red Stag Fulfillment can help you lower your Amazon fees—contact us today.
Optimize your inventory management
Keeping the right amount of inventory in your Amazon store is key to controlling seller fees while ensuring product availability. A few strategies to improve inventory management include:
Using predictive analytics and demand forecasting tools like InventoryLab or SellerApp to reduce storage costs
Reviewing external data, historical sales trends, and seasonal fluctuations to plan stock levels more accurately
Preparing for seasonal demand shifts to avoid overstocking or running out of inventory
Choose the right selling plan
Consider your sales volume before selecting an Amazon seller plan. If you typically sell fewer than 40 items per month, the Individual Plan may be the more cost-effective option. However, if you plan to sell at higher volumes or take advantage of additional features, the Professional Plan may offer a better value.
If you’re just starting out, you can begin with the Individual Plan and switch to the Professional Plan when it becomes more financially beneficial.
Leverage promotions and discounts
If it aligns with your business strategy and finances, consider exploring Amazon’s advertising options to increase sales velocity. Running targeted ad campaigns can help you stand out in a competitive marketplace.
Additionally, leveraging promotions and discounts, such as Amazon’s Lightning Deals, can drive more sales while helping to move inventory out of fulfillment centers, reducing long-term inventory storage costs.
Simplify Amazon selling with smart fee strategies
Amazon fees are a necessary part of selling on the ecommerce platform, but managing them effectively can help safeguard your profit margins. Understanding the different fees, tracking costs, and making strategic decisions—such as choosing the right fulfillment partner—can significantly improve your bottom line.
For sellers managing large, bulky, or high-value items, working with a reliable 3PL provider like Red Stag Fulfillment can help reduce Amazon-related costs and improve your operational efficiency.
Ready to sell more cost-effectively? Contact Red Stag Fulfillment today to get started.
