How Much Percent Does Amazon Take from Sellers?

When selling products on Amazon, it's crucial to understand the fees involved to accurately assess profitability. Amazon's fee structure can seem complex, but it essentially revolves around a few key components: referral fees, closing fees, and sometimes additional costs related to services like Fulfillment by Amazon (FBA). Here’s a detailed breakdown of these fees and what you can expect as a seller on the platform.

Referral Fees

Amazon charges a referral fee for each item sold, which is a percentage of the total sales price. The referral fee varies by category. For most categories, this fee ranges from 6% to 45% of the item's price, but it typically hovers around 15%. For instance, the referral fee for electronics might be around 8%, while for clothing, it might be 17%. Amazon regularly updates these percentages, so it's essential to check the current rates on Amazon’s official Seller Central page.

Closing Fees

In addition to referral fees, Amazon imposes a closing fee for each item sold in specific categories like media (books, music, videos, and DVDs). This fee is typically $1.80 per item. This fee is designed to cover the costs associated with handling and processing media items.

Fulfillment by Amazon (FBA) Fees

If you use Amazon’s Fulfillment by Amazon (FBA) service, where Amazon handles storage, packaging, and shipping, you’ll encounter additional fees. FBA fees consist of:

• Fulfillment Fees: These are charged per unit and vary based on the size and weight of the item. For example, as of the latest updates, standard-size items might incur a fee of $2.50 to $5.00 per unit, while oversized items might incur fees ranging from $8.00 to $75.00 per unit.

• Monthly Storage Fees: Amazon also charges a monthly fee for storing your inventory in their warehouse. As of recent data, this fee is $0.75 per cubic foot for standard-size items and $0.48 per cubic foot for oversized items. These fees are charged monthly and can increase during peak seasons like Q4 (October-December).

Additional Costs

There are also optional services and features that can incur additional fees:

• High-Volume Listing Fees: If you list a high number of items, you may face extra charges.
• Advertising Fees: If you choose to promote your products using Amazon’s advertising services, such as Sponsored Products, these costs will be additional. These fees are variable and depend on your advertising strategy and competition.

Fee Structure Summary

To give you a clearer picture, here’s a simplified table summarizing the common fees:

Fee Type	Description	Cost Range
Referral Fees	Percentage of the sale price	6% to 45%, typically 15%
Closing Fees	For media categories	$1.80 per item
Fulfillment Fees (FBA)	Per unit fee based on size and weight	$2.50 to $75.00 per unit
Monthly Storage Fees	Per cubic foot	$0.75 (standard), $0.48 (oversized)
Advertising Fees	Variable based on ad campaigns	Variable

Conclusion

Understanding Amazon’s fee structure is vital for managing your sales strategy and calculating your profit margins accurately. While Amazon’s fees might seem high compared to other platforms, the exposure and reach you get can often outweigh these costs. Always stay updated with Amazon’s fee changes and utilize the Seller Central tools to monitor your expenses and profits effectively.