How Amazon Fees Work: A Complete Breakdown for New Sellers

So, you're ready to start selling on Amazon but the moment you dive into the fee structure, your head starts spinning.

Referral fees, FBA charges, storage costs, it’s like a maze of fine print and percentages.

Don’t worry, you’re not alone.

Amazon’s fees can be confusing at first, but once you understand how they work, you’ll be able to price your products smartly and protect your profit.

In this guide, we’ll break down every major Amazon fee, explain how they’re calculated, and share tips to help you save more on every sale.

What Are Amazon Seller Fees?

When you sell on Amazon, you’re essentially paying rent to set up shop in the world’s busiest marketplace.

These “rent” payments come in the form of seller fees and there’s more than one type.

At a high level, Amazon seller fees fall into three buckets:

• Subscription fees – just for having a seller account
• Transaction-based fees – a cut Amazon takes from each sale
• Optional service fees – like fulfillment or storage, if you use Amazon FBA

Some fees are fixed, others are percentage-based, and a few are sneaky (we’ll get to those). Whether you're a side hustler or a scaling brand, understanding what you're being charged and why is the first step to running a profitable Amazon business.

Amazon Selling Plans: Individual vs Professional

Before you sell your first product, Amazon makes you choose: Individual or Professional plan?

Here’s the simple difference:

• Individual Plan: No monthly fee, but you pay $0.99 per item sold
• Professional Plan: Flat $39.99/month, no per-item fee

So which one’s right for you?

If you’re just testing the waters or plan to sell fewer than 40 items a month, the Individual plan is a low-risk way to get started.

But if you’re more serious or selling even moderately consistently, the math quickly favors the Professional plan.

Plus, with the Professional plan, you unlock a lot more:

• Access to Amazon Ads
• Ability to win the Buy Box
• Bulk listing and inventory tools
• Integration with third-party tools and APIs

Referral Fees: Amazon’s Cut from Every Sale

Every time you make a sale on Amazon, they take a slice, that’s your referral fee.

It’s essentially Amazon’s commission for bringing you the customer. You get the platform, traffic, and trust. They get a percentage of your sale.

Here’s how it works:

• Charged as a percentage of the total sale price
• Usually ranges from 8% to 15%, depending on the category
• Some categories (like Amazon device accessories) can go up to 45%, so it pays to check your category rate

For example:

If you sell a kitchen gadget for $50 and the referral fee is 15%, Amazon keeps $7.50,no matter if you use FBA or fulfill orders yourself.

It’s automatic, so you won’t get billed, they simply deduct it from your payout.

Tip: Before listing a product, check the referral fee for its category on Amazon’s official fee schedule. That way, you’re not surprised later.

Storage Fees: Monthly & Long-Term Charges

While Fulfillment by Amazon (FBA) takes the hassle out of shipping, it comes with a price, literally. One of the most overlooked (and underestimated) costs for new sellers is storage fees.

Amazon charges you for keeping your products in their fulfillment centers. And if your inventory sits too long, those charges don’t just add up, they multiply.

Let’s break it down.

Monthly Inventory Storage Fees

Every month, Amazon bills you based on how much space your products occupy in their warehouses. This is calculated in cubic feet, and the rate changes depending on the time of year and whether your items are standard-size or oversized.

Here’s what you can expect:

Why the spike in Q4?

The holiday season brings a surge in seller activity. More inventory = less space. Amazon hikes up rates from October to December to prioritize faster-moving products.

Example:

If your standard-size inventory takes up 50 cubic feet in November, you’ll be charged 50 x $2.40 = $120 for just one month of storage.

Aged Inventory Surcharge (Long-Term Storage Fees)

Got stock that just won’t sell? Amazon doesn’t like that.

If your inventory has been in their fulfillment centers for over 181 days, Amazon starts charging an aged inventory surcharge, previously known as long-term storage fees.

• Starts at: $0.50 per unit/month (for 181–270 days old)
• Increases as inventory ages (goes up after 365, 540, and 730 days)
• Charged on top of monthly storage fees

Example:

Let’s say you have 100 units of a product sitting for over 200 days. That’s 100 x $0.50 = $50/month, just in aged inventory fees.

And that’s not counting monthly storage fees.

Why This Can Hurt Your Business

Here’s the trap many new sellers fall into:

They send too much inventory to Amazon to “save on shipping” or “prepare for sales.” But if those items don’t sell quickly, you’re paying Amazon month after month to babysit your unsold stock.

It’s death by a thousand small charges.

And in Q4? Those “small” charges get big fast.

How to Avoid High Storage Costs

The good news? Storage fees are avoidable if you stay proactive.

Here are a few simple ways to reduce or eliminate these charges:

• Send inventory in smaller, more frequent batches: Don’t send six months of stock if you’re only selling a few units per week.

• Track inventory age in Seller Central: Use the “Inventory Age” report to identify slow-moving SKUs.

• Run discounts or coupons to move aging stock: Turn fees into sales instead of paying to hold dust-collectors.

• Use removal orders: You can ask Amazon to return or dispose of aging inventory. There’s a fee, but it’s often cheaper than long-term storage charges.

• Forecast smarter: Base restocks on actual sales velocity, not guesswork.

Other Common Fees on Amazon

Beyond the usual selling and fulfillment charges, Amazon has a handful of smaller fees that tend to sneak up on new sellers.

They're not part of every transaction, but if you’re in the wrong category or not paying attention to your inventory, they can quietly chip away at your profits.

Let’s walk through the most common ones you should know:

Returns Processing Fee

If you're using FBA and selling in categories like Apparel, Shoes, or Accessories, where Amazon offers free returns, you’ll be charged a returns processing fee.

It’s typically equal to the original FBA fulfillment fee, which means if you paid $3.22 to fulfill that item, you’ll pay another $3.22 when it’s returned.

So while returns are free for the customer, they’re not for you.

Closing Fees (for Media Products)

If you're selling media, think books, DVDs, video games, CDs, Amazon charges a $1.80 closing fee per unit on top of the usual referral fee.

This applies to both FBA and FBM sellers, and there’s no way around it. It’s simply the cost of selling in that category.

High-Volume Listing Fees

Do you have a massive catalog? If your active non-media listings exceed 100,000 SKUs, Amazon starts charging a $0.005 monthly fee per additional listing.

Most new or mid-size sellers won’t hit this limit, but it’s something to watch if you’re using bulk product feeds or running a dropshipping-style model.

Refund Administration Fee

When a customer returns an item and gets a refund, Amazon refunds your referral fee, but not all of it. They keep the lesser of $5 or 20% of the referral fee as a refund admin charge.

So if you’re selling high-volume or high-return products, this little fee can start adding up.

How to Calculate Your Total Cost of Selling on Amazon

Selling on Amazon isn’t just about what you make, it’s about what you keep.

To figure out your real profit per sale, you need to go beyond your product’s price and factor in every fee that touches it along the way. It’s not complicated once you break it down.

Here’s a simple way to calculate your total cost per unit:

Total Cost Per Unit =

Product cost

• Shipping to Amazon (if FBA)
• Amazon referral fee
• Fulfillment fee (FBA or FBM)
• Storage fee (if using FBA)
• Other applicable fees (returns, labeling, long-term storage, etc.)

Example:

Let’s say you sell a phone case for $20 using FBA. Here’s how the costs might look:

• Product cost: $4
• Shipping to Amazon: $0.50
• Referral fee (15%): $3
• Fulfillment fee (FBA): $3.22
• Storage fee: $0.10
• Return processing (average): $0.50

Total cost = $11.32

Profit per unit = $20 - $11.32 = $8.68

Tips to Reduce Amazon Seller Fees and Maximize Profit

Small tweaks in your pricing, packaging, and processes can make a big difference to your bottom line.

Whether you’re using FBA, FBM, or a mix of both, here are some practical ways to reduce costs and hold onto more profit:

1. Optimize Product Size and Weight

Amazon’s fulfillment and storage fees are heavily based on dimensions and weight. Even a few grams or centimeters can bump you into a higher fee tier.

Tip: Use compact packaging and avoid unnecessarily bulky items. If possible, redesign product bundles to qualify for lower size tiers.

2. Bundle Products Strategically

Bundles let you sell more value in one order, while paying fulfillment and referral fees just once.

Example: Selling a 3-pack instead of single units can reduce per-unit fees and improve margins, especially on low-cost products.

3. Stay on Top of Aged Inventory

FBA storage fees skyrocket after 180 days. Set inventory reminders, use sell-through reports, and create promotions to move slow stock before the surcharge hits.

4. Prep Your Shipments Properly

Avoid unplanned service and labeling fees by prepping your inventory before sending it to Amazon. Print FNSKU labels, polybag items as needed, and follow Amazon’s packaging rules closely.

5. Regularly Audit Your Amazon Fees

Mistakes happen. Sometimes Amazon charges incorrectly for returns, removals, or damaged stock, and you might be owed money.

Action: Regularly use a tool or manually review your FBA reimbursements. Sellers often recover hundreds (even thousands) this way.

Conclusion

Selling on Amazon opens the door to millions of customers but it’s not free real estate. Between referral fees, fulfillment costs, storage surcharges, and the occasional surprise charge, your profit can quietly shrink if you’re not paying attention.

But here’s the good news: once you understand how the fee structure works, you can take control.

You’ll start making smarter decisions, from how you price your products, to how much inventory you send.

Treat your margins like a business, not a guessing game.

FAQS

How much percent does Amazon take from sellers?

Amazon typically takes 8% to 15% of your product’s sale price as a referral fee, depending on the category. Additional fees apply if you use FBA or other services.

What are the fees for an Amazon seller?

Sellers may pay subscription fees, referral fees, fulfillment and storage fees (if using FBA), plus optional charges like return processing, long-term storage, and refund administration.

Does Amazon charge you to be a seller?

Yes. Amazon charges either $0.99 per item sold (Individual plan) or a flat $39.99/month (Professional plan), plus other selling and service-based fees.

Is it better to use FBA or FBM for lower fees?

FBA is convenient but can be more expensive. FBM gives you control over fulfillment and may reduce costs, especially for heavy or low-margin items.

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