What Percentage of Money Does Amazon Take from Sellers?

When selling on Amazon, understanding the fees and commissions is crucial for calculating your profitability. Amazon offers various selling plans and charges different fees depending on the type of product, category, and selling method. Here's a breakdown of the key fees Amazon charges sellers:

1. Referral Fees:
   Every time a seller makes a sale, Amazon charges a referral fee. This fee is typically a percentage of the total sales price, including the item price and any shipping or gift wrap charges. The referral fee ranges between 6% to 45% depending on the product category, but the average is around 15%. For example, if you sell a book for $20, Amazon may take a $3 referral fee, depending on the category and any applicable promotions.

2. Fulfillment Fees:
   If you use Amazon’s FBA (Fulfillment by Amazon) service, you'll be charged additional fees for picking, packing, and shipping your products. FBA fees vary based on the product's size, weight, and category. For example, a standard-size item (weighing less than 1 lb) may incur a fulfillment fee of around $3.22 to $3.31 per unit. Larger or heavier items will have higher fees.

3. Subscription Fees:
   Amazon offers two main selling plans: the Individual Plan and the Professional Plan. The Individual Plan charges $0.99 per item sold, which is best for low-volume sellers. The Professional Plan costs $39.99 per month, regardless of the number of items sold, and is more suitable for high-volume sellers.

4. Storage Fees:
   Sellers who store their products in Amazon’s fulfillment centers are charged storage fees. These fees are calculated based on the daily average volume (measured in cubic feet) occupied by your inventory. Monthly storage fees range from $0.87 to $2.40 per cubic foot, depending on the time of year and the size of the item. Additionally, long-term storage fees may apply to inventory stored for over 365 days.

5. Other Fees:

   • High-Volume Listing Fee: If you list more than 1.5 million SKUs, you may incur a high-volume listing fee, which is $0.005 per additional SKU.
   • Refund Administration Fee: When a customer returns a product, Amazon refunds the referral fee, but retains a portion as a refund administration fee. This fee is 20% of the referral fee, or $5.00, whichever is less.

Here’s a simplified example to understand the cost structure:

Fee Type	Cost
Referral Fee	15% of sales price
Fulfillment Fee (FBA)	~$3.22 per standard-size item
Subscription Fee	$39.99/month (Professional Plan)
Storage Fee	$0.87 - $2.40 per cubic foot

In conclusion, Amazon's fees can significantly impact your profit margins. The percentage of money Amazon takes from sellers varies depending on various factors like the product category, fulfillment method, and selling plan. It's essential to calculate these costs carefully to ensure your business remains profitable on the platform. Understanding these fees will help you make informed decisions about pricing, inventory management, and sales strategies.