Selling on Amazon can unlock immense freedom for businesses of all sizes. However, understanding the cost architecture is crucial for ensuring profitability. In this comprehensive guide, we dive deep into every fee Amazon charges, helping sellers make knowledgeable decisions and maximize their profits.
Understanding Amazon’s Selling Plans
Amazon offers two primary selling plans, each designed to entertain different types of sellers:
1. Individual Selling Plan
- Cost: $0.99 per item sold
- Best for sellers who plan to sell less than 40 items per month
- No monthly subscription fee
- Access to basic listing and order management tools
2. Professional Selling Plan
- Cost: $39.99 per month
- Suitable for sellers expecting to move more than 40 items monthly
- Access to progressive selling tools, promotions, reports, and qualification for top placement on product detail pages
Choosing the right plan depends on the volume of sales and the definitive needs of your business.
Referral Fees Explained
A referral fee is a proportion of the total sales price (item price + shipping + gift wrap) that Amazon collects.
This fee varies depending on the product category:
| Product Category | Referral Fee Percentage |
| Books, Music, DVDs | 15% |
| Consumer Electronics | 8% |
| Home and Garden | 15% |
| Jewelry | 20% (minimum $2 fee) |
| Clothing and Accessories | 17% |
| Grocery and Gourmet Food | 8% |
Important: Amazon often modernizes referral fee percentages, so it’s essential to stay current.
Closing Fees for Media Products
If you sell media products like books, music, videos, or DVDs, you are subject to a closing fee:
- Flat rate: $1.80 per item sold
This fee applies on top of referral fees for these product categories.
FBA (Fulfillment by Amazon) Fees
If you choose to use Amazon’s logistics and customer service through FBA, increased costs come into play.
Fulfillment Fees
These are charged per unit and comprise picking, packing, shipping, and customer service.
| Size Tier | Fulfillment Fee (Standard Size) |
| Small Standard | $3.22 |
| Large Standard | $5.32 |
| Small Oversize | $9.73 |
| Large Oversize | $75.78 + $0.79/lb over 90 lb |
Larger or heavier products instinctively incur higher fees.
Storage Fees
Amazon also charges for storing your inventory:
- Standard Size: $0.87 per cubic foot (January–September)
- Standard Size: $2.40 per cubic foot (October–December, peak season)
Oversized items have different storage fee architecture.
Additionally, reserves stored for more than 365 days are subject to long-term storage fees.
Other Potential Costs to Consider
High-Volume Listing Fee
If you create a massive volume of SKUs, Amazon may apply:
- $0.005 per listing monthly for sellers with more than 100,000 active SKUs.
Refund Administration Fee
When a customer gets a refund, Amazon refunds your referral fee minus a refund organization fee:
- $5.00 or 20% of the referral fee, whichever is less.
Advertising and Promotional Costs
To succeed on Amazon, advertising is often essential:
- Sponsored Products Ads
- Sponsored Brands Ads
- Deals and Coupons
Costs vary conditional on your advertising budget and competition.
Subscription Fees for Additional Services
You may also subscribe to services like:
- Amazon Brand Registry
- Amazon Handmade
- Amazon Business
Each service can have its own fees or requirements.
Summary of Key Amazon Selling Costs
| Fee Type | Cost |
| Individual Plan Fee | $0.99 per item sold |
| Professional Plan Fee | $39.99/month |
| Referral Fee | 8% to 20% depending on category |
| Closing Fee (Media) | $1.80 per item |
| Fulfillment Fee (FBA) | Varies by size and weight |
| Storage Fee (FBA) | $0.87 – $2.40 per cubic foot |
| Refund Administration Fee | $5.00 or 20% of referral fee |
| High-Volume Listing Fee | $0.005 per listing over 100,000 |
Choosing the Right Selling Strategy on Amazon
Selecting between respective and Professional selling plans, deciding to handle achievement yourself or via FBA, and carefully monitoring your product category’s referral fee can seriously influence your bottom line. Seller’s Intent for volume sales typically benefits more from the Professional plan connected with FBA to scale operations, appreciate customer satisfaction, and win the coveted Buy Buybox.New or casual sellers often begin with the respective plan to test product-market fit without perpetrating a monthly contribution.
Tips to Minimize Amazon Selling Costs
- Optimize packaging to reduce FBA fulfillment and storage fees.
- Regularly monitor your inventory age to avoid long-term storage fees.
- Bundle products where appropriate to minimize per-unit costs.
- Use Amazon’s fee preview tool to estimate fees before listing products.
- Leverage advertising wisely, focusing only on high-ROI campaigns.
Final Thoughts
While the charge structures are thoroughly comprehended and taken into consideration while developing price strategies, selling on Amazon can be immensely lucrative. A proactive approach to fee management, continuous monitoring, and meticulous planning are essential for success. Sellers can flourish on Amazon’s cutthroat marketplace by becoming proficient with the fee structure.