Amazon Seller Fees in the UK: What You Need to Know

Amazon charges sellers in the UK a variety of fees depending on the type of account they have and the services they use. Here’s a breakdown of the key costs associated with selling on Amazon UK: Subscription Fees, Referral Fees, Closing Fees, and Fulfillment Fees. Understanding these fees is crucial for managing your costs and maximizing your profitability on the platform.

Subscription Fees:
Amazon offers two types of seller accounts: Individual and Professional. The Individual account has no monthly subscription fee but charges £0.75 per item sold. This type is suitable for sellers who plan to sell fewer than 35 items per month.

The Professional account incurs a monthly subscription fee of £30 (excluding VAT). This account type is best for sellers who anticipate selling more than 35 items per month and who want to access advanced selling tools and features, such as bulk listing and advertising options.

Referral Fees:
Amazon charges a referral fee on each item sold, which is a percentage of the total selling price (including item price, shipping, and gift wrapping). The referral fee percentage varies by product category and ranges from 7% to 15%. For example, in the Electronics category, the referral fee is 7%, while in the Clothing category, it is 15%.

Closing Fees:
For media items such as books, music, videos, and DVDs, Amazon charges a closing fee of £0.50 per item. This fee is in addition to the referral fee and is specific to these types of products.

Fulfillment Fees:
If you use Amazon’s Fulfillment by Amazon (FBA) service, you will incur additional fulfillment fees. These fees cover the cost of storage, picking, packing, and shipping your products. FBA fees are broken down into:

• Fulfillment Fees: Charged per unit, these fees vary depending on the size and weight of the product. As of now, the fees are approximately £2.50 to £5.00 per item for standard-size items and £6.00 to £11.00 for oversized items.
• Storage Fees: Charged monthly for the space your inventory occupies in Amazon’s warehouse. The current rates are £0.75 per cubic foot for standard-size items and £2.50 per cubic foot for oversized items. Seasonal storage fees apply from October to December, and are higher during this period.

Here’s a simple breakdown of the FBA fees:

Fee Type	Standard Size	Oversized
Fulfillment Fee	£2.50 - £5.00	£6.00 - £11.00
Monthly Storage Fee	£0.75 per cubic foot	£2.50 per cubic foot
Seasonal Storage Fee	Higher rates apply from October to December	Higher rates apply from October to December

Additional Costs:
Apart from the primary fees mentioned above, sellers might also encounter additional costs such as:

• Advertising Fees: If you use Amazon’s advertising services to promote your products, there will be extra charges based on your ad campaign budget and performance.
• Returns Processing Fees: For items fulfilled by Amazon, there may be a returns processing fee if a customer returns a product.

Conclusion:
Understanding and managing the fees associated with selling on Amazon UK is essential for running a successful business. By considering the subscription fees, referral fees, fulfillment costs, and any additional expenses, you can better plan your pricing strategy and optimize your profitability. Keeping track of these costs and adjusting your business strategies accordingly will help you make the most out of your selling experience on Amazon UK.