Key Points
- Fees that apply to all Amazon sellers include individual or professional fees, refund administration fees, and referral fees.
- FBM sellers do not have their own separate fees — unlike FBA sellers — but costs can be higher as FBM sellers store, pick, pack, and ship products and have to handle their customer service personally.
- FBA sellers have their own separate fees, including storage fees (both monthly and long-term) and their FBA fees.
- Fees that only apply to certain sellers include high-volume listing fees (for those carrying high stock numbers) and closing fees (for those selling certain media products).
Understanding the various fees involved with selling on Amazon is vital in determining whether you will be able to turn a profit. And so it is important that you take stock of what selling on Amazon will cost you. This article aims to help you understand Amazon fees so you can decide whether Amazon FBA is a viable business venture.
Fees That Apply to All Amazon Sellers
Regardless of whether you are a Fulfilment By Amazon (FBA) or a Fulfilment by Merchant (FBM) seller, fees apply to all users if you wish to sell on Amazon.
Individual or Professional Fees
On Amazon, there is the option of two types of seller accounts, namely individual and professional. The type of account you have determines whether you need to pay an individual per-item fee or a monthly subscription fee.
- Individual: For every sales transaction, an individual seller pays 75p. These fees are only taken after a sale is made, which are then subtracted from the total amount that Amazon puts in your Amazon account balance. Therefore it does not need to be paid upfront. Keep in mind that if there are no funds in your Amazon account, the amount will be taken from your credit card instead.
- Professional: Unlike individual fees where you pay per sale, professional sellers pay a monthly fee of £25. Again, these fees are taken from your account balance.
Refund Administration Fees
Refund Administration Fees apply when a consumer asks for a refund on a product you have already been paid for. When Amazon issues the refund, you are charged a fee to process it. This will be either 20% or £5 of the refunded charge (the cheapest option). Once again, these fees are paid through your Amazon account balance (or, failing this, your credit card).
Referral Fees
This is defined as the commission that is paid to Amazon for every item sold on their online marketplace. The amount depends on what product category your item sells in. The majority of referral fees are between 8% and 15%. For every product, Amazon deducts the applicable referral fee percentage calculated on the total sales price (amount paid by buyer). These fees are again taken from your Amazon account post-sale and do not need to be paid upfront. Below we have compiled a table of the referral fee schedule:
| Amazon Product Category | Referral Fee Minimum | Referral Fee Percentage |
| Additive Manufacturing | £0.25 | 12.24% |
| Amazon Device Accessories | £0.25 | 45.9% |
| Baby Products (notincluding Baby Clothing) | £0.25 | 8% for products that have a total sales price of £10.00 15% for products that have a total sales price of more than £10.00 |
| Beauty | £0.25 | 8% for products that have a total sales price of £10.00 or less 15% for items that have a total sales price greater than £10.00 |
| Beer, Wine & Spirits | – | 10.2% |
| Books | – | 5.1% for products that have a total sales price up to £5.00 15.3% for products that have a total sales price greater than £ 5.00 |
| Music, VHS, DVD | – | 15.3% |
| Business, Industrial & Scientific Supplies | £0.25 | 15.3% |
| Car and Motorbike | £0.25 | 7.14% for Car & Motorbike electronic devices 12.24% for Car & Motorbike electronic accessories For remaining Car & Automotive products: 15.3% for the portion of the total sales price up to £45.00 9.18% for any portion of the total sales price higher than £45.00 |
| Clothing, Shoes and Handbags | £0.25 | For Amazon FBA and Seller Fulfilled Prime selections: 15.3% for the portion of the total sales price up to £40.00 7.14% for any portion of the total sales price higher than £40.00 For all other selections: 15.3% flat fee |
| Computers | £0.25 | 7.14% |
| Computer Accessories | £0.25 | 15.3% for the portion of the total sales price up to £100.00 8.16% for any portion of the total sales price higher than £100.00 |
| Consumer Electronics | £0.25 | 7.14% |
| DIY & Tools | £0.25 | 13.26% |
| Education Supplies | £0.25 | 15.3% |
| Electronic Accessories | £0.25 | 15.3% for the portion of the total sales price up to £100.00 8.16% for any portion of the total sales price higher than £100.00 |
| Flow Control & Filtration | £0.25 | 12.24% |
| Fluid Transfer | £0.25 | 12.24% |
| Furniture | £0.25 | 15.3% for the portion of the total sales price up to £175.00 10.2% for any portion of the total sales price higher than £175.00 (not including mattresses, which will be charged 15.3% on total sales price) |
| Grocery & Gourmet | – | 8.16% for products with a total sales price up to £10.00 15.3% for products with a total sales price higher than £10.00 |
| Health & Personal Care | £0.25 | 8.16% for products with a total sales price up to £10.00 15.3% for products with a total sales price higher greater than £10.00 Click here for more information on the different types of categories and/or products within Health & Personal Care |
| Home and Kitchen | £0.25 | 15.3% |
| Industrial Electrical Supplies | £0.25 | 12.24% |
| Industrial Tools & Instruments | £0.25 | 12.24% |
| Jewellery | £0.25 | 20.4% for the portion of the total sales price up to £225.00 5.1% for any portion of the total sales price higher than £225.00 |
| Large Appliances (not including Accessories, Microwaves and Range Hoods) | £0.25 | 7.14% |
| Material Handling | £0.25 | 12.24% |
| Metalworking | £0.25 | 12.24% |
| Musical Instruments & DJ | £0.25 | 12.24% |
| Personal Care Appliances | £0.25 | 8.16% for products with a total sales price up to £10.00 15.3% for products with a total sales price higher than £10.00 |
| Renewable Energy Supplies | £0.25 | 12.24% |
| Software | – | 15.3% |
| Sports & Outdoors | £0.25 | 15.3% |
| Tyres | £0.25 | 7.14% |
| Video Games – Games & Accessories | – | 15.3% |
| Video Games – Consoles | – | 8.16% |
| Watches | £0.25 | 15.3% for the portion of the total sales price up to £225.00 5.1% for any portion of the total sales price higher than £225.00 |
| Handmade | £0.25 | 12.24% |
| Everything Else | £0.25 | 15.3% |
Fees That Only Apply to Amazon FBM Sellers
Unlike Amazon FBA sellers, FBM sellers do not have their own separate fees. But you should note that being an FBM seller can often involve higher costs as you have to store, pick, pack, and ship your own products and personally handle their customer service. So, while you think it might be cheaper to be an FBM seller as you pay fewer fees than an FBA seller, it may end up costing you more due to the packing and shipping of your products. An FBM seller must, therefore, comprehend the cost of labour because, despite the fact they aren’t paying a fee (or paying someone else to help), it is costing them time and, consequently, money.
Fees That Only Apply to Amazon FBA Sellers
Monthly Storage Fees
Amazon charges FBA sellers monthly storage fees to store and maintain your inventory in one of its fulfilment centres. If you have inventory remaining in an Amazon warehouse at the close of the month, Amazon will charge you a monthly storage fee, which, as you might have guessed, is deducted from your account balance or your credit card if not.
Monthly Inventory Storage Fees for Non-Dangerous Goods (based on cubic feet per month)
Clothing, Shoes and Bags Categories
January – September: £0.40
October – December: £0.5
All Other Categories (standard-size)
January – September: £0.66
October – December: £0.93
Oversize
January – September: £0.46
October – December: £0.64
Monthly Inventory Storage Fees for Dangerous Goods (based on cubic feet per month)
Standard-size
January – September: £0.75
October – December: £1.05
Oversize
January – September: £0.65
October – December: £0.90
Long-Term Storage Fees
If you have inventory items sitting in an Amazon fulfilment centre for more than one year (365 days), you will be charged a monthly long-term storage fee. The costs are:
- Non-media items: Monthly storage fee of £4.30 per cubic foot.
- Media items: You will be charged the greater of either a monthly long-term storage fee of £4.30 per cubic foot or a minimum long-term storage fee of £0.10 per unit.
The inventory assessment date is always on the 15th day of each month. The storage fees are taken from your Amazon seller account balance, or failing that, your credit card. It is prudent to note that sometimes these fees fluctuate in an effort to encourage sellers to shift their inventory.
FBA Fees
When you use Amazon FBA, you do not need to worry about your products’ shipping, handling, or packaging as Amazon’s fulfilment employees handle all of this for you. But, to cover these costs, you are charged an FBA fee. This fee is determined by the weight and size of your product. To find out how much these FBA fees will cost for a specific weight and size, please consult Amazon’s complete list of fulfilment fees.
Fees That Only Apply to Certain Sellers – Miscellaneous
This final section touches on a few types of fees that are only applicable to a few sellers (irrespective of whether they are an FBA or FBM seller).
High-Volume Listing Fee
This fee only applies to you if you exceed 2 million SKUs (unique blocks of numbers or letters that identify your products) in a given month. This is applied to your highest number of SKUs above 2 million at any time during that month. For every active non-media SKU over 2 million, £0.0003 per SKU is charged. So if you made 4 million active non-media SKUs available, the fee for that month would be £600 (4,000,000 – 2,000,000 SKUs = 2,000,000 SKUs x £0.0003). These fees are paid simultaneously as FBA storage fees and are deducted from your account balance. If there are insufficient funds, this amount is taken from your credit card.
Closing Fees
Media products including DVDs, CDs, Blu-Ray and DVDs require a flat fee per sale. You only need to concern yourself with these if you sell these products. There is a closing fee of £0.50 per media item sold except for Books which is £1.00. The media categories are Books, Music, DVD, Video, Video Games (Games, Accessories and Consoles) and Software.
Final Thoughts
Getting your head around the various fees when running an Amazon seller business can be challenging but is essential to do. Understanding these fees help you to ascertain how much profit you can make. It can be stressful getting to grips with the world of Amazon selling, which is why we are here to help. At NUOPTIMA, we offer advice on growing your Amazon brand and assist with improving your business. If you would like a consultation, book a free discovery call with us today.
