Amazon Seller Fees: Costs of Selling on Amazon

Amazon seller fees include sale-related fees, seller account fees, shipping costs, and Amazon FBA fees.

The average seller pays 15% of each product’s selling price in sale-related fees, which range from 6% to 45%. Each account fee is between $0 and $39.99 per month. You will also have to fulfill and ship your orders, which vary widely in cost based on your products and fulfillment method.

Below, we’ll explain the different types of Amazon seller fees you will encounter on the eCommerce platform and show you how to estimate the fees you will pay for each product you sell.

1. Amazon Sale-Related Fees

When selling products on Amazon, you may pay referral fees, minimum referral fees, and closing fees.

To get an accurate picture of your specific costs, we’ll show you the resources to use based on your item category and sale price.

Below is a summary of these fees. We’ll go into more detail about each one.

Seller Fee Amount Based on
Referral Fee Ranging from 6% to 45% (most sellers pay 15%), this fee is paid if the minimum referral fee is less than the referral fee. Category
Minimum Referral Fee $0–$2 will be charged if the referral fee is less than the minimum referral fee. Category
Variable Closing Fee $1.80 All Media Categories

Referral Fees

Sellers on Amazon (both Individual and Professional accounts) pay a referral fee for every sale they make. There are two factors that determine your referral fee: the product category and the selling price.

As a percentage of the selling price of your product, referral fees are calculated. On average, sellers pay a referral fee of 15%. Depending on which category your products fall into, fees can range from 6% to 45%.

Check Amazon’s Seller Fee Schedule, which lists referral fees by category, to determine exactly how much you’ll pay on the products you sell.

Minimum Referral Fees

Some categories are subject to a Minimum Referral Fee by Amazon. Based on your product’s price, you will pay the greater of two referral fees (not both!) for a category in which you sell.

Closing Fees

Products sold under Amazon’s media categories are subject to an additional fee. Closing Fees are a flat $1.80 fee that is added to Referral Fees for any media category, including:

  • Books
  • DVD
  • Music
  • Software and computer/video games
  • Video
  • Video game consoles

2. Amazon Seller Account Fees

There are two types of Amazon seller accounts. The fees and features of each type of service are tailored to the unique selling needs of low-volume individuals and high-volume businesses.

Account Type Monthly Fee Listing fee
Individual Seller $0 99 cents per item sold
Professional Seller $39.99 $0

Besides the differences in fees, each type of account offers features tailored to the needs of either small or large sellers.

Individual Seller Accounts

With Amazon Individual Seller accounts, you can set up your account in minutes and pay no monthly fees – but you have a few additional restrictions compared to Professional Seller accounts.

  • Up to 40 actual product sales per month, not the number of product listings
  • Seller Central dashboard does not support bulk uploads – listings need to be created manually
  • Only applies to certain categories
  • No gift wrap

Professional Seller Accounts

For $39.99 per month, Amazon Professional Seller accounts provide many volume-selling features tailored to your business needs.

  • Offers unlimited product listings
  • Bulk product uploads are available
  • Connects to order management systems and eCommerce platforms
  • Can manage FBA inventory, as well as inventory on site
  • Can provide gift wrap

Which Account Is Suitable for You?

You should choose the Professional Seller account if you’re an established eCommerce seller moving to Amazon; the Individual Seller account is more limited and requires more management effort.

However, if you are just starting to sell products on Amazon, an Individual Seller account can be used with no up-front fees at all. Individual Seller accounts are free to register, and you are only charged when you sell your products. You aren’t even “charged”—Amazon deducts its cut from your payout, so you pay nothing.

3. Shipping Credits & Costs

These charges are not seller fees, but if you’re not careful, they can add up quickly. You get a shipping credit from Amazon if you ship orders yourself, but there’s a catch. Amazon generally gives sellers a small credit compared to the actual shipping rates you have to pay.

In the end, you may spend more on shipping orders than you receive from Amazon’s shipping credit, depending on what you sell and how large and heavy each package is. When selling items on Amazon, you need to know how much you will receive from Amazon for each item so that you don’t lose all your profits to shipping costs.

Check the seller shipping rates here

To find out if credits will cover your shipping costs, use the chart of seller shipping rates to see what Amazon will offer you for shipping your products. After that, compare these amounts with your actual shipping costs.

Selling small, lightweight items might be easier to bring you a profit. However, if your products come in large or heavy boxes, you might lose money on every sale.

Shipping software is one thing that can reduce your shipping costs dramatically and boost your Amazon profit. You can easily compare shipping costs with it and automate your shipping tools.

Stamps.com, for example, allows you to import orders directly from Amazon, select the best shipping rates based on price, offer discounted postage rates, as well as email tracking information to your customers. Using those tools, you can efficiently and cost-effectively ship every order.

The shipping costs are a major reason why Amazon sellers, especially Professional Seller accounts, use Fulfillment by Amazon (FBA) to ship their products.

4. Fulfillment by Amazon (FBA) Fees

Regardless of how the product is fulfilled, Amazon charges all sellers 15% of each sale.

Amazon FBA charges two main types of fees besides the seller fee: fulfillment fees and inventory storage fees.

For each shipped order, FBA charges a fulfillment fee that includes all steps of picking, packing, and shipping.

Those fees cover the cost of storing your products in Amazon fulfillment centers.

Here are the details on each fee and why the prices vary so greatly.

FBA fulfillment fees

FBA Amazon fulfillment fees include every step of the fulfillment process, unlike many other fulfillment service pricing models that charge for picking, packing, and shipping separately.

The fulfillment fee depends on the size and weight of the item being shipped. Standard sizes and oversize items fall into two categories.

The term standard size refers to products weighing less than 20 pounds or having dimensions smaller than 18x14x8 inches.

Items that are larger or weigh more than what is listed above are considered oversized.

There are several subcategories under each of these categories.

Shipping costs are calculated according to dimensional weight, which considers the density of a shipment in determining shipping costs.

Depending on the size of the order, fulfillment fees can range from $2.41 for items under one pound up to $4.71 for items over two pounds, plus $0.38 for each additional pound.

There is an additional $0.38/pound for oversize products (over 18x14x8 inches), and fees for large oversize products (over 70 pounds or dimensions greater than 60 inches on the longest side) start at $8.13.

The fulfillment fee for special oversize products (over 150 pounds or dimensions greater than 108 inches on the longest side) starts at $137.32, plus $0.91/lb after 90 pounds.

A fulfillment fee of $0.40/item is also added to apparel orders through FBA.

There’s no one-size-fits-all FBA fulfillment fee here – it will depend mostly on what you’re selling.

Furthermore, FBA fulfillment fees include packaging, but Amazon will ship your items in Amazon-branded boxes. As a result, Amazon’s branding is at the center of the shipping experience, which can overshadow any brand experience you want to create. Even though this is not a deal-breaker, you should keep it in mind.

Other FBA fees explained

Using FBA to fulfill Amazon orders may incur additional fees based on your business needs.

  • Product Return fees: If you are eligible for free returns through Amazon Prime, you will have to pay an additional fee for FBA returns. (The fulfillment fee covers returns processing for products without free returns.)
  • Inventory removal fees: Furthermore, taking your inventory out of their fulfillment centers can be costly if you decide to stop using FBA. Depending on the size of the item, Amazon will charge between $0.50 and $0.60 to remove and return your inventory. It will cost you $0.15 to $0.30 for Amazon to dispose of your inventory.
  • Penalty fees: Amazon has very strict requirements for sellers, and they also use fees to penalize sellers who do not follow their rules (here is an article on how to avoid mistakes when selling on Amazon). A seller who fails to follow Amazon’s strict specifications for FBA stock barcode labels will be charged a labeling fee. In case sellers do not comply with the stringent packaging and preparation guidelines, they are charged an unplanned FBA prep fee.
  • Package prep fees: Amazon can also prepare and package products for you – for an additional fee. You may or may not incur extra costs depending on your margins and order volume.
  • Long-term storage fees

Final Words

Over 2.45 billion people visit Amazon each month, even in the low season, and Amazon generates more than one-quarter of US eCommerce sales (outside of auto parts). This highly popular and customer-centric marketplace comes with a significant cost with many complex parts, but these advantages make it a highly promising platform to use.

When selling items on Amazon, the margin between profit and loss can be thin, so it’s imperative that you understand the fees and costs involved. By keeping this information in mind, you can find profitable products in this huge, ever-growing market and enjoy success.

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