Amazon Seller Fees: Everything You Need To Know [Guide]

Updated on April 8, 2024.

Seller fees are a significant cost of doing business when running an Amazon store.

Understanding and properly accounting for applicable Amazon fees will help you to get a clear picture of all associated business costs, which will allow you to price your products properly and help you avoid diminished profits.

In this guide (reviewed by A2X’s expert Customer Success team, who work with Amazon sellers every day), we’ll cover some frequently asked questions and important information about Amazon seller fees so you can forecast, manage, and maybe even reduce them over time.

Let’s dive in!

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How much does it cost to sell on Amazon?

According to Amazon:

“The cost to sell on Amazon depends on your selling plan, product category, fulfillment strategy, and other variables. The options are flexible, so you can find the combo that works best for you and your goals.”

In other words, there’s no straightforward answer to how much it costs to sell on Amazon – it’s going to be unique to every business.

A simplified way to think about the cost of selling on Amazon is as follows:

Your subscription plan + the cost to sell an item

As mentioned, however, what this ends up looking like will be unique for every business.

Moreover, Amazon’s vast and variable fee structure can complicate the process of determining your costs – particularly when it comes to “the cost to sell an item” – which depends on which types of product fees apply to your business.

What are the different types of Amazon fees?

Let’s take a look at some categories of fees and how you can track them to understand the cost of selling on Amazon for your business.

Amazon fees are usually charged before you receive your Amazon bank deposits, so it’s a good idea to understand what they are and why you’ve paid them if you want to try to keep them to a minimum. (One key exception to this are advertising fees, which may be charged to the seller’s credit card and, given that they are generally charged monthly, may not be charged before the seller receives their deposits.)

We also recommend reviewing our Comprehensive List of Amazon Seller Fees & Transactions, which provides a list of specific transactions that you’ll see on your Amazon seller statement (e.g., ‘Order Item Price Principal’).

Subscription fees

Amazon subscription fees are recurring fees that sellers are charged for selling on Amazon.

Amazon currently offers two options when it comes to an Amazon subscription: the Individual plan (which is charged per item sold), or the Professional plan (which is charged monthly).

Learn more about Amazon subscription fees and how to account for them, and learn more about Amazon’s selling plans.

Commission and selling fees

On top of your selling plan fees, you’ll pay Amazon a referral fee. This is like their commission for bringing you a customer.

The referral fee (or commission fee) is charged on each product sale and is a percentage of the total sale price. This total includes shipping or gift wrapping charges.

Referral fee percentages vary by product category, most ranging between 8% and 15%. There is also a minimum charge that will take effect if the referral fee percentage is too low.

Amazon reviews commission and selling fees regularly, so check that you’re using the most up-to-date rate card to understand the commission fees for your product category.

Learn more about how to account for Amazon commission fees.

Delivery and transport fees

When you send items to Amazon warehouses, you’ll be charged for the intake process when goods are received.

Learn more about delivery and transport fees and how to account for them.

Gift wrapping fees

If you sell via FBA and opt to offer gift wrapping, you might see related fees pop up.

The fees could simply cover the wrapping service, and may still stand even if the wrapped item(s) are returned.

Optional service fees

There are a few services you can opt in to which offer your business potential advantages, which you will then be charged for.

For example:

• Inventory placement service fee: This fee allows you to send all your FBA shipments to one location, rather than a selection that Amazon provides. The single location is far easier and cheaper for you, but Amazon has to do that extra legwork at the other end.
• Brand neutral packaging service fee: If you don’t want your items to ship in Amazon-branded packaging, you’ll be charged extra.

Shipping fees

Customers pay for shipping the items they purchase on Amazon; however, Amazon sellers are charged when their items are shipped. These fees are typically known as “chargeback” or “holdback” fees.

Learn more about Amazon shipping fees and how to account for them.

FBA and MCF fees

Amazon’s fulfillment service, Fulfillment by Amazon (FBA), helps third-party sellers benefit from its extensive shipping infrastructure. The ‘Fulfilled by Amazon’ badge on listings gives buyers peace of mind, and often faster delivery times, too.

MCF stands for Multi-Channel Fulfillment, and this service makes FBA available to sellers that aren’t listing items on Amazon. This is particularly useful if you sell on and off Amazon since it can take care of all your fulfillment across your sales channels.

There are no upfront fees to use Amazon fulfillment services. You are charged after items have been received and processed by Amazon.

FBA fees are based on product category (e.g., apparel vs. non-apparel), and size and weight. Learn more about FBA rates here.

MCF fees are slightly different and a little higher – while they are also charged based on size and weight, there is an additional price variation for the number of units. The more units you sell and fulfill with Amazon MCF, the cheaper each unit will be. Learn more about MCF rates here.

As well as the fulfillment activities themselves, you may find the following fees on your statement too:

• Monthly storage fee – For simply storing your items. This is based on cubic feet of space taken up by your products.
• Long-term storage fees – If an item has been stored for more than 365 days, you’ll start paying an extra fee for it each month. Or, some sellers may opt to rent storage spaces in Amazon warehouses to store inventory, which will also be labeled as a long-term storage fee.
• Removal fees – If you want to avoid long-term storage fees, you can have items removed (for a fee).
• Returns processing fees – If your customer is offered free returns shipping by Amazon, you may be charged for this.
• Unplanned service fees – These might occur if items arrived at the FBA warehouse improperly labeled or prepared for processing. There are “first instance” and “subsequent incidence” fees to penalize sellers not meeting their obligations.
• Storage overage fees – If your inventory exceeds any storage allowances you are set by FBA, you’ll be charged these on top of any other storage fees.

Learn more about Amazon fulfillment and storage fees and how to account for them.

Amazon Pay fees

Amazon Pay is one of the payment gateways you may choose to offer your buyers.

It’s a quick and easy way to checkout for customers, but as with just about all payment gateways, there are charges for using it.

Charges will include a combination of fees, including:

• Transaction fees
• Authorization fees
• Domestic processing fee
• Cross-border processing fee
• Disputed chargeback fee
• Refunds of transaction fees
• Amazon Pay with Shopify Payments fee

Learn more about Amazon Pay fees and current rates on Amazon.

Are there any hidden Amazon fees?

While not exactly hidden, some less obvious fees include long-term storage fees, return processing fees (for FBA), and fees for additional services like advertising or premium account features.

Regularly reviewing your fees via your seller statements and/or A2X can help you catch these fees and keep track of them.

How do refunds and returns impact Amazon fees?

Upon a successful return and refund to the buyer, Amazon will typically also refund the following fees to the seller, as applicable:

• Referral fees
• Closing fees

Note that this may vary based on the product category and the circumstances of the return.

Amazon may also charge the seller for the following fees:

• Return shipping fees – If the return is due to buyer remorse, the buyer might be responsible for the return shipping costs. However, if Amazon facilitates the return, the cost of return shipping might be charged to the seller, especially if the return is due to an error on the seller’s part (like incorrect description, damaged item, etc.).
• Restocking fees – Sellers have the option to charge a restocking fee (up to a certain percentage) for certain products. This is usually applicable in cases where the item is returned not due to an error on the seller’s part. However, this is subject to Amazon’s policies and may not be applicable in all cases.
• FBA fees – Additional fees may also apply if using FBA, such as a fee for processing the returned item, which includes unpacking and inspecting the item. The fee varies depending on the size and weight of the product.
• Refund administration fee – Amazon may also charge a small fee (usually a percentage of the original order referral fee) for processing a refund.

It’s also important to note that high return rates may impact a seller’s account health metrics – if Amazon perceives a seller to have excessive returns, it may lead to account warnings or even suspension.

Are Amazon fees different for international sales?

The short answer is: Yes.

Some Amazon fees may be higher and more complex when selling on international marketplaces. Some particular fee categories to check include:

• Referral fees – Some may be higher for certain product categories in other marketplaces.
• Currency conversion fees – If the transaction involves currency conversion (e.g., selling from a US account on Amazon UK), Amazon may charge a fee.
• International FBA fees – FBA sellers may encounter different fees for international orders, including higher fees due to additional costs associated with international shipping, etc.
• Shipping fees – If a seller is not using FBA, they should expect shipping costs to international customers to be higher.
• Subscription fees for multiple marketplaces – You may be charged a subscription fee for each marketplace you sell in.

In addition to Amazon fees, it’s also important for sellers to be aware of other compliance-related charges they may have to pay when selling internationally, including:

• Customs and duties
• Sales tax, VAT, and/or GST

We strongly recommend working with a specialized ecommerce accountant – find one on the A2X Partner Directory.

Are Amazon seller fees tax deductible?

Amazon seller fees may be tax deductible. Tax deductible expenses are usually those which your business requires to run. Amazon fees are an expense required to run an Amazon business.

Every business will have different tax obligations, so it’s always best to seek the expertise of a specialist ecommerce or Amazon accountant for the best tailored advice.

We have a directory here of trusted specialists if you’re looking for one.

Can I sell on Amazon without paying fees?

You could, but it might be challenging. Find inventory you already own, create an Individual seller account, find another listing for the same product and add your name to it as a supplier.

Your item is less visible, but it’s also listed free. You will likely still need to pay to ship it.

How do I pay Amazon fees?

Amazon usually collects fees by automatically deducting them from the seller’s sales proceeds.

When an item is sold, Amazon calculates the applicable fees (like referral fees and any FBA fees) and deducts them before transferring the balance to the seller’s account. The same process applies for a monthly subscription fee – Amazon will deduct this on a monthly basis from the seller’s account.

If the balance in the seller’s account isn’t enough to cover the fees, Amazon might charge the seller’s credit card (which is why sellers usually need to have a valid credit card on file and a bank account linked to their Amazon seller account). Or, you may have the option to carry over any negative balances, and they will be deducted when you have enough sales to cover the balance you owed to Amazon before they processed the final settlements.

Why is it important to keep track of Amazon fees?

When you get a deposit from Amazon, that deposit isn’t just sales – it’s a combination of different transactions. As discussed above, this amount is your sales, less the fees incurred from selling on Amazon.

To provide an oversimplified example: Let’s say you made $10,000 in sales during a payout period, but Amazon charged $3,000 in fees. That means that your payout deposit in your bank account would only be $7,000. If you were to report that $7,000 as “sales” in your accounting, it would not provide accurate information about how your business is performing (which can also have tax implications – e.g., from underreporting sales).

It’s critical for Amazon sellers to track their fees so they can understand their cash flow and financial performance, price competitively, and comply with applicable tax legislation.

How can I tell if my Amazon fees are too high?

Determining whether or not fees are too high will depend on your store’s operations. Regardless of your store’s unique setup, however, it will require careful monitoring of your fees.

Indicators to look out for include:

• Low or negative profit margins
• Discrepancies in fee charges – e.g., compare your fees charged with the expected fee structure and look for discrepancies due to incorrect product categorization, etc.
• High FBA fees relative to size and weight of product(s)
• Excessive storage fees – e.g., keep an eye out for long-term storage fees
• Additional charges for optional services (that you might not need)
• Changes in Amazon fees – e.g., keep an eye out for changes in Amazon’s fee structure that may have an impact on your store
• Inefficient advertising spend

How can I reduce my Amazon fees?

The first step to reducing your Amazon fees is having a deep understanding of your business and the current fees that impact it most. Accurate accounting can help you with this – see below.

Once you have accurate and up to date numbers, examine them closely and look for optimization opportunities with the following aspects of your Amazon store:

• Pricing – ** ** Are your products priced competitively, while ensuring the pricing will cover all costs (including Amazon fees)?
• Product categorization – Are your products categorized correctly? Misclassification of products can result in higher referral fees.
• Product size and packaging – FBA fees are partly based on the size and weight of the product. Are there opportunities to make your packaging as small and light as possible to reduce fulfillment fees?
• Inventory management – Is there a way you can avoid long-term storage fees that might be adding up? Regularly review your inventory turnover and adjust stock levels to avoid excess inventory and associated fees.
• Returns and order defect rates – High return rates can lead to increased fees and penalties. Work on improving product quality and accuracy of your product listings (including images and descriptions) to reduce the likelihood of returns and negative feedback.
• Fulfillment method(s) – Compare the costs of using FBA vs. FBM (Fulfilled by Merchant) vs. MCF (Multi-Channel Fulfillment – if you sell on multiple platforms). Depending on what you sell, an alternative fulfillment channel might be more cost-effective.

Where can I find a detailed breakdown of the Amazon fees I’m being charged?

Amazon seller statements

Amazon provides detailed monthly statements that include a breakdown of all fees charged during the month. These statements can be found in the ‘Payments’ section of Seller Central. They include itemized details of each transaction, including sales, refunds, and the various fees associated with these transactions.

If you are advertising on Amazon, you might also want to look at the advertising performance reports provided in Seller Central.

There are also a couple ways you can forecast your Amazon seller fees before they are incurred – see below.

Amazon fee preview report

Amazon offers a fee preview report in the ‘Reports’ section in Seller Central. It provides an estimated breakdown of Amazon’s fees for each individual product listed. This includes referral fees, fulfillment fees (if using FBA), and other relevant charges.

While this fee preview report is a great way to get an idea of your Amazon costs, it’s important to keep in mind that these are estimates of fees, not the exact amount. Actual fees may vary based on final sale price, shipping costs, and more.

Moreover, the fee preview report might not include all possible fees (like long-term storage fees for FBA or additional handling fees).

See here for more information from Amazon that will help you interpret the fields on the fee preview report and what they mean for your store.

Amazon fee calculators

Alongside Amazon’s fee preview report, you can use a fee calculator to forecast your fees as accurately as possible.

In our guide to Amazon fee calculators, we take three examples and show you how to use them for your business.

Unfortunately, it’s not always possible to catch every fee before it’s charged. As you can see above, there are a lot of different types that may kick in before you have a chance to get ahead of them.

The best way to accurately track your Amazon fees is to integrate an app that can break all your fees down for you, and make it easy to spot patterns, newbies, or mistakes.

That’s where A2X can help!

How can I accurately account for my Amazon fees?

Get an overview of how to get started with Amazon accounting here. Or, get a detailed guide for how to do Amazon accounting in Xero here.

Sellers should invest in accounting software for their Amazon store, and use A2X to integrate Amazon with their software of choice.

A2X will organize the transactions that make up an Amazon payout into accurate summaries that reconcile perfectly with your deposits in your accounting software.

Start your free trial of A2X today.