Amazon Seller Fees: Understanding the Percentage Breakdown

As an Amazon seller, understanding the fees associated with selling on the platform is crucial for managing your business finances effectively. Amazon's fee structure can be complex, with various percentages depending on the type of sale and the category of the product. This article provides a detailed breakdown of Amazon seller fees and how they impact your profits.

1. Referral Fees

One of the primary fees for Amazon sellers is the referral fee, which is a percentage of each sale you make. This fee varies depending on the product category. For most categories, Amazon charges a referral fee ranging from 6% to 45% of the selling price. Here’s a general idea of referral fees by category:

• Books: 15%
• Electronics: 8%
• Clothing and Accessories: 17%
• Jewelry: 20%

These percentages reflect the cost of using Amazon’s platform and services to reach millions of customers.

2. Fulfillment Fees

If you use Amazon’s Fulfillment by Amazon (FBA) service, you’ll incur additional fees. FBA fees are divided into two main categories:

• Fulfillment Fees: These are charged per unit and cover the cost of picking, packing, and shipping your products. For standard-size items, the fee is about $2.50 per unit. For oversized items, the fee ranges from $8.00 to $14.00 per unit, depending on size and weight.

• Monthly Storage Fees: These are based on the volume of inventory stored in Amazon’s warehouses. Standard storage fees are about $0.75 per cubic foot from January to September and $2.40 per cubic foot from October to December for holiday season peak. Oversized items are charged at a higher rate.

3. Closing Fees

For media items such as books, music, and DVDs, Amazon charges a closing fee in addition to the referral fee. This is a flat fee of $1.80 per item sold.

4. Subscription Fees

To sell on Amazon, you have the option to choose between two selling plans:

• Individual Plan: No monthly subscription fee, but you pay a fee of $0.99 per item sold, along with other selling fees.

• Professional Plan: Costs $39.99 per month, regardless of the number of items sold. This plan offers additional features and no per-item fee.

5. Additional Fees

There are other potential fees depending on the services and features you use:

• High-Volume Listing Fee: For sellers with a large number of listings, there may be a fee for listing over a certain number of items.
• Refund Administration Fee: When you issue a refund to a customer, Amazon retains the referral fee but deducts a $5.00 fee from your account.
• Advertising Fees: If you use Amazon’s advertising services, such as Sponsored Products or Sponsored Brands, these are additional costs that vary based on your advertising strategy and competition.

Table: Breakdown of Amazon Seller Fees

Fee Type	Description	Amount
Referral Fees	Percentage of the selling price	6% - 45%
Fulfillment Fees	Per unit fee for picking, packing, shipping	$2.50 - $14.00
Monthly Storage Fees	Storage cost per cubic foot	$0.75 - $2.40
Closing Fees	Additional fee for media items	$1.80 per item
Subscription Fees	Monthly fee for Professional Plan	$39.99
Refund Administration Fee	Fee deducted from your account for refunds	$5.00

Conclusion

Understanding Amazon's fee structure is essential for maximizing your profitability as a seller. By familiarizing yourself with the different types of fees and how they are applied, you can better manage your pricing strategy and business expenses. Keeping track of these fees will help you make informed decisions and optimize your selling approach on Amazon.