🚀 Increase Practice Profitability with the Essential Ecommerce Bookkeeping Checklist. Get it Free

What Are Amazon Referral Fees? [Guide + Full List]
Apr 22, 2021

What Are Amazon Referral Fees? [Guide + Full List]

Home » Blog » What Are Amazon Referral Fees? [Guide + Full List]

Estimated reading time: 9 minutes.

 

Confused by Amazon fees? We don’t blame you.

Amazon has rather a few to get your head around - subscription and listing fees are only the beginning. But it’s crucial for your bottom line that you understand which apply to you and why.

In this article, we’ll be exploring referral fees, specifically: What they are, how much they are and how to stay on top of them.

In this guide on Amazon’s referral fees:

Want to feel completely confident in your ecommerce bookkeeping?

Businesses that document their processes grow faster and make more profit. Download our free checklist to get all of the essential ecommerce bookkeeping processes you need every week, month, quarter, and year.

Download it here

What Are Amazon Referral Fees?

Buyers go to Amazon for great value and quick service. The platform has earned a mammoth reputation for being great for both these things.

With around 215 million monthly visitors, that’s quite a reach and reputation. Referral fees are Amazon’s commission for bringing buyers to your digital doorstep.

Amazon referral fee amounts vary depending on the category of your product. The fee is charged once an item has sold and will either be a percentage of the sale or a minimum fixed price - whichever is greater.

While all sellers on Amazon are charged the referral fee, an additional fee is charged for sellers of products in the media category.

What is an Amazon closing fee?

An Amazon closing fee is a fixed charge of $1.80 per media item sold and is deducted from the sold price after the referral fee.

The closing fee only applies to products that are classified in the media category.

Amazon media category:

  • Books
  • Computer games
  • Computer software
  • DVD & Blu Ray
  • Music
  • Video
  • Video Games
  • Video Game Consoles

Let’s have a look at what these fees look like in practice.

Amazon referral fees by category

These tables show fees for media followed by non-media products. For the media products, we’ve included the closing fee.

*NB: These were correct at the time of publishing. Please check Amazon’s website (sources are linked below the tables) for the most up-to-date fees.*

Amazon referral fees for media products

MediaReferral fee percentageMinimum referral feeClosing fee
Books15%$0.00$1.80 closing fee
Computer games and software15%$0.00$1.80 closing fee
DVD and Blu-ray15%$0.00$1.80 closing fee
Music15%$0.00$1.80 closing fee
Video15%$0.00$1.80 closing fee
Video games15%$0.00$1.80 closing fee
Video game consoles8%$0.00$1.80 closing fee

Amazon referral fees for non-media products

Clothing and accessoriesReferral fee percentageMinimum referral fee
Accessories17%$0.30
Clothing (including, Made in Italy, activewear, and baby apparel)17%$0.30
Jewelry20% for a portion of sales price below $250.00, 5% for a portion of sales price over $250.00$0.30
Shoes, handbags, and sunglasses15%$0.30
Watches16% for a portion of sales price below $1,500.00, 3% for a portion of sales price over $1,500.00$0.30
CollectiblesReferral fee percentageMinimum referral fee
Collectible books15%$0.00
Collectible coins15% for a portion of sales price below $250, 10% for a portion of sales price between $250 - $1,000, 6% for a portion of sales price over $1,000.$0.30
Entertainment collectiblesRestricted product - sellers must sign in to Seller Central for referral fee pricing-
Fine artRestricted product - sellers must sign in to Seller Central for referral fee pricing-
Sports collectibles15% for portion of sales price below $100, 10% for portion of sales price between $100 - $1,000, 6% for portion of sales price over $1,000$0.30
Electronics and accessoriesReferral fee percentageMinimum referral fee
Amazon device accessories45%$0.30
Cameras and photos8%$0.30
Cell phones8%$0.30
Consumer electronics8%$0.30
Electronics accessories (including video game and camera)15% for a portion of sales price below $100.00, 8% for a portion of sales price over $100.00$0.30
Large appliances15% for a portion of sales price below $300.00, 8% for a portion of sales price over $300.00$0.30
Personal computers6%$0.30
Unlocked cell phones8%$0.30
Home and officeReferral fee percentageMinimum referral fee
3D printed products12%$0.30
Animals and animal related-products8% of the sales price of or below $15.00, 15% of the sales price over $15.00$0.00
Baby products (excluding baby apparel)8% of the sales price of or below $10.00, 15% of the sales price over $10.00$0.00
Furniture - indoor15% for a portion of sales price below $200.00, and 10% for a portion of sales price over $200.00$0.30
Gift cards20%$0.00
Grocery and gourmet food or beverages (including alcohol)8% of the sales price of or below $15.00, 15% of the sales price over $15.00$0.00
Home supplies15%$0.30
Kitchen supplies15%$0.30
Musical instruments15%$0.30
Office products15%$0.30
Pet supplies15%$0.30
Tools and home improvement15%$0.30
Toys and games15%$0.30
OutdoorReferral fee percentageMinimum referral fee
Automotive and powersports (including power tool bases)12%$0.30
Furniture - outdoor15% for a portion of sales price below $200.00, and 10% for a portion of sales price over $200.00$0.30
Outdoor and garden supplies15%$0.30
Tire and wheel products10%$0.30
Personal careReferral fee percentageMinimum referral fee
Beauty Health and personal care Personal care appliances8% of the sales price of or below $10.00, 15% of the sales price over $10.00$0.30
Safety and hygieneReferral fee percentageMinimum referral fee
Industrial and scientific (including food service and sanitation)12%$0.30
Subscriptions and servicesReferral fee percentageMinimum referral fee
Amazon subscription boxesBox product category referral fee appliesBox product category minimum referral fee may apply
TravelReferral fee percentageMinimum referral fee
Amazon Explore30%$5.00
Luggage15%$0.30
Travel accessories15%$0.30
Everything else15%$0.30

Source.

How are referral fees calculated?

Using the table above, check out these working examples of referral fees and how they are calculated at checkout.

NB: Amazon charges referral fees based on the total checkout amount. This remains the case whether you have additions like gift wrapping or shipping credits too.

Referral fee calculation

Let’s start with an easy one.

An example:

A customer purchases one of your gift cards at $8.00. Gift cards have a referral fee percentage of 20%, so:

  • Amazon deducts 20% of the sale price ($1.60).
  • You receive $6.80.

Minimum referral fee calculation

The only time the referral fee percentage is not used is when it works out to be less than the minimum referral fee.

For example:

You’re selling a pair of sports socks for $1.50, the referral fee percentage is 17% and the minimum referral fee is $0.30.

  • Amazon’s minimum referral fee is $0.30 which is more than 17% of the sale price.
  • Amazon deducts $0.30.
  • You receive $1.20.

Closing fee calculation

The closing fee is charged in conjunction with the referral fee when a media product is sold. You’ll be charged the closing fee after the referral fee amount has been deducted.

Closing fee example:

You’re selling a game console for $120. Referral fees on these are 8% and being media, you’ll have an additional closing fee to pay on top.

  • Amazon deducts 8% of the sale price ($9.60).
  • Amazon deducts an additional closing fee ($1.80).
  • You receive $108.60.

Calculating categories with two referral fees

You might notice some products have two referral fees. These could include:

  • Different referral fee percentages depending on the sale price of your product.
  • Proportional referral fees when the sale price exceeds a certain amount.

For example:

Mattresses are portioned into two referral fee percentages, 15% deducted from the initial $200.00 and 10% deducted from the cost of $200.00 or more.

If you sell a mattress for $300.00:

  • Amazon will calculate 15% from $200 and 10% from $100.
  • Your referral fee will be $50.00.
  • Theoretically, you’ll receive $250.00.

Discounted product calculations

If you decide to place a discount or offer a coupon code on your product, Amazon will deduct the referral fee from the new discounted price, not the original price.

Referral Fees Are Here to Stay

As Amazon’s commission, it’s safe to say these fees aren’t going anywhere. The best thing sellers can do is stay on top of them and estimate how much they will be ahead of time to ensure profitability for their products.

Stay on Top with A2X for Amazon

Keeping track of your Amazon fees can be an overwhelming task for even the most seasoned pro.

Referral fees are just the tip of the iceberg, and you’ll need to understand what you’ve been charged to ensure profit and growth in the future.

By integrating A2X with your Amazon account and accounting software, you save yourself the hours of manual calculations that come with comparing bank deposits with settlement statements. A2X calculates every line item that has gone into your bank deposits so that you don’t have to.

A2X sends neat journal summaries of your settlements to your accounting software and organizes your books via the accrual method so that your forecasting is accurate, cash flow is managed properly and accounting software doesn’t get clogged up.

Put down the calculator and let technology handle your accounting when you start your free trial with A2X for Amazon today.

Amazon Referral Fees: FAQ

Find additional information on Amazon fees from their help pages here.

What is an Amazon referral fee?

Amazon referral fees are the commission you pay to Amazon for selling to its customers. These are based on checkout totals rather than product cost alone, and vary by product category.

What does the referral fee cost?

Amazon referral fees vary by product and category. There is a percentage or a minimal fixed amount - you will pay whichever is greatest. Percentages range from 6%+ and fixed fees from $0-0.30+. Media products are also subject to an additional closing fee.

How are referral fees calculated?

Referral fees are calculated based on the checkout total for a sale, even if this includes added extras like giftwrapping. The fee will either be a percentage of the sale based on the product category, or a minimum fixed fee - whichever is greater. Media products are also subject to a closing fee on top.

How do I pay referral fees to Amazon?

Amazon automatically deducts referral fees, you don’t need to process anything manually.

Do FBA sellers have different referral fees?

Amazon sellers using FBA are charged the same referral fee rates as sellers that fulfill orders themselves.

Do referral fees increase or decrease?

All Amazon fees including referral fees may increase or decrease each year. Any changes are advised months in advance and can be viewed in your Amazon Seller Central account.

The next Amazon fee changes may be effective from the 1st of June 2021.

If a product is returned, is the referral fee refunded to me?

Partially, yes. For non-media products, Amazon refunds you 80% of the fee paid plus any other fees up to $5. For media products, you will receive a refund of all your fees, potentially excluding the $0.99 individual seller fee if applicable.

Also on the blog

Want to feel completely confident in your ecommerce bookkeeping?

Businesses that document their processes grow faster and make more profit. Download our free checklist to get all of the essential ecommerce bookkeeping processes you need every week, month, quarter, and year.

Download it here

Ecommerce accounting is challenging, A2X makes it easy.

Discover how A2X can automatically take all of your accounting pain away.

Try A2X for Free

Sign up to our newsletter

Join The Ecommerce Insider to receive a monthly roundup of all things ecommerce, accounting, and ecommerce accounting.