Hello again & welcome to another FBA Global discussion around the basics of Amazon FBA. Today, we dive into discussion of the Amazon FBA fees incurred when you set up and sell products on Amazon. We will also provide an Amazon FBA fees calculator for you so there are no surprises when it comes time to make your first sale.
We leave no stone unturned, read on for everything from Fulfillment options to the cost of Amazon FBA storage fees.
Amazon Fulfillment Options
There are three fulfillment methods to choose from when selling on Amazon:
- Fulfillment by Amazon (FBA): Amazon ships inventory to the seller, and on behalf of the seller, Amazon fulfills orders
- Fulfillment by Merchant (FBM): After receiving orders from Amazon, the seller ships its goods directly to the customer
- Seller-Fulfilled Prime (SFP): According to Amazon Prime’s strict shipping standard, the seller delivers its products directly to the customer, enabling them to view the Prime badge on listings they fulfill from their facilities.
Each of these Amazon shipping options has its benefits, drawbacks, and pricing structures.
FBA is the top preference of many sellers for fulfilling Amazon orders. This is because sellers can use Amazon fulfillment centers to store inventory and the “pick, pack, and ship” steps of the multi-channel fulfillment process are the responsibility of Amazon. Let’s break down the logistics costs that comprise Amazon FBA.
What are Amazon FBA Fees?
Final Amazon FBA fees will depend on seasonality, the type and size of the products being stored and shipped, and a variety of other factors.
You can use the Amazon FBA Profit Calculator to view the Fulfillment Fee charged on any Product in the Amazon Catalog. Run this tool on several competitors you are tracking so you have an idea of this fee before moving forward with a product.
Note: Amazon does not charge different amounts or weights within the same range. A 2.1lbs. The product will incur the same fulfillment fee as a 2.9lbs. product.
For each product sold, Amazon charges all sellers 15% of the selling price of the product, regardless of the method of e-commerce fulfillment. This is known as the Seller Referral Fee.
For each order shipped, the FBA Fulfillment Fee includes the entire “picking, packing, and shipping” process. Below we’ll explain what each fee means and why prices can vary so greatly among them.
Amazon Referral Fees
Amazon’s Seller Referral Fees are 15% of the product’s selling price. For example, if your product sells for $100, Amazon would take a $15 cut of the sale, leaving you with $85 in revenue before other fees are applied.
Referral fees for each item sold (typically 15% of product’s selling price) are the cost of being listed on the Amazon catalog.
|Category||Referral Fee %||Minimum Referral Fee (per item)|
|Amazon Device Accessories||45%||$0.30|
|Baby Products (excluding Baby Apparel)||8% for products with a total sales price of $10.00 or less, and 15% for products with a total sales price greater||$0.30|
|Camera and Photo||8%||$0.30|
|Cell Phone Devices||8%||$0.30|
|Electronics Accessories||15% for the portion of the total sales price up to $100; and 8% for any portion of the total sales price greater than $100||$0.30|
|Furniture & Decor||15% for the portion of the total sales price up to $200.00, and 10% for any portion of the total sales price greater than $200.00 Note: Mattresses will be charged 15% regardless of price point.||$0.30|
|Home & Garden (including Pet Supplies)||15%||$0.30|
|Major Appliances||15% for the portion of the total sales price up to $300; and 8% for any portion of the total sales price greater than $300||$0.30|
|Software & Computer/Video Games||15%||—|
|Sports (excluding Sports Collectibles)||15%||$0.30|
|Tools & Home Improvement||15%, except 12% for base equipment power tools||$0.30|
|Toys & Games||15%||$0.30|
|Unlocked Cell Phones||8%||$0.30|
|Video & DVD||15%||—|
|Video Game Consoles||8%||—|
|Categories Requiring Approval||Referral fee percentages||Applicable minimum referral fee|
|3D Printed Products||12%||—|
|Automotive & Powersports||12%, except 10% for tires and wheels products||$0.30|
|Beauty||8% for products with a total sales price of $10.00 or less, and 15% for items with a total sales price greater than $10.00||$0.30|
|Clothing & Accessories||17%||$0.30|
|Collectible Coins||See Category Requirements for referral fees.|
|Entertainment Collectibles||See Category Requirements for referral fees.|
|Fine Art||See Category Requirements for referral fees.|
|Grocery & Gourmet Food||8% for products with a total sales price of $15.00 or less, and 15% for products with a total sales price greater than $15.00||—|
|Health & Personal Care (including Personal Care Appliances)||8% for products with a total sales price of $10.00 or less, and 15% for items with a total sales price greater than $10.00||$0.30|
|Industrial & Scientific (including Food Service and Janitorial & Sanitation)||12%||$0.30|
|Jewelry||20% for the portion of the total sales price up to $250.00, and 5% for any portion of the total sales price greater than $250.00||$0.30|
|Luggage & Travel Accessories||15%||$0.30|
|Shoes, Handbags & Sunglasses||15% for products with a total sales price of up to $75 18% for products with a total sales price above $75||$0.30|
|Sports Collectibles||See Category Requirements for referral fees.|
|Watches||16% for the portion of the total sales price up to $1,500; and 3% for any portion of the total sales price greater than $1,500||$0.30|
FBA Fulfillment Fees
FBA Fulfillment Fees include every step of the fulfillment process. Depending on the product size and shipping weight of the item being shipped, the Fulfillment Fee varies. There are two main item size categories: standard size and oversize. See full Size Tier Determinations:
Items that weigh less than 20 pounds or have dimensions smaller than 18x14x8 inches are standard size products.
Oversize shipping applies to items larger than the dimensions above.
There are several additional subcategories within those categories.
Both the size and weight of the goods being shipped are important because Amazon uses dimensional weight to measure shipping costs, which takes into account the density of a package. For items under one pound to over two pounds the cost is $4.90 to ship, with an additional cost per pound over 2 pounds.
Amazon Fulfillment Fee Table
Amazon also tacks on an extra $0.40/item in Apparel Fulfillment Charges. Your FBA Fulfillment Fees will depend on exactly what you sell. There is no one-size-fits-all fee here.
|Small (10 oz or less)||$2.50|
|Small (10 oz to 16 oz)||$2.63|
|Large (10 oz or less)||$3.31|
|Larges (10 oz to 16 oz)||$3.48|
|Large (1lb to 2lb)||$4.90|
|Large (2 to 3lb)||$5.42|
|Large (3 to 21lb)||$5.42 + $0.38/lb after the first 3 pounds|
|Product Size||Product Price|
|Small oversize (71lb or less)||$8.26 + $0.38/lb above the first two pounds|
|Medium oversize (151lb or less)||$11.37+ $0.39/lb above the first two pounds|
|Large oversize (151lb or less)||$75.78 + $0.79/lb above the first 90 pounds|
|Special oversize||$137.32 + $0.91/lb above the first 90 pounds|
In addition to the charges mentioned above, there is another charge you need to consider if you are selling clothing items.
FBA fulfillment fees changes for clothing
|Size Tier||Shipping Weight||Packaging weight||Fulfillment fee per unit|
|Small Standard||10 oz or Less||4 oz||$2.92|
|10 to 16 oz||$3.11|
|Large Standard||10 oz or less||4 oz||$3.70|
|10 to 16 oz||$3.81|
|1 to 2 lb||4 oz||$5.16||$5.35|
|2 to 3 lb||4 oz||$5.66||$5.95|
|3 lb to 21 lb||4 oz||$5.66 + $0.38/lb above first 3 lb||$5.95 + $0.38/lb above first 3 lb|
Amazon FBA Storage Fees
FBA Inventory Storage Fees cover the storage of your products in Amazon fulfillment centers.
|January – September||$0.75 per cubic foot||$0.48 per cubic foot|
|October – December||$2.40 per cubic foot||$1.20 per cubic foot|
Monthly Storage Cost
|INVENTORY ASSESSMENT DATE||ITEMS IN FULFILLMENT CENTERS 181 TO 365 DAYS||ITEMS IN FULFILLMENT CENTERS 365 DAYS OR MORE|
|Semi-annual (February 15 and August 15)||$11.25 per cubic foot||$22.50 per cubic foot|
Long-Term Storage Fees
|Inventory Assesment Date||Items In Fulfillment Centers 181 To 365 Days||Items In Fulfillment Centers 365 Days or More|
|Monthly (15th of every month)||$3.45 per cubic foot||$6.90 per cubic foot|
Minimum Long-Term Storage Fees
|Inventory Assessment Date||Items in Fulfillment Centers 365 Days Or More|
|Monthly (15th of every month)||$0.50 per unit|
Other FBA Fees
The following fees are incurred depending on your business’ operations.
Product Return Fees
You will pay an extra fee for FBA returns if your product is eligible for free returns through Amazon Prime. (The processing of returns is included in the Fulfillment Fee for goods without free returns.)
Inventory removal fees
Note that it can be expensive to remove your inventory from an Amazon fulfillment centers if you decide you no longer want to use FBA. If you choose to have Amazon remove your inventory and return it to you, depending on the item size, they will charge $0.50-$0.60 per item. It will cost you $0.15 to $0.30 per item for Amazon to dispose of your inventory for you.
Amazon is known for its very strict requirements for sellers, and they also use fees to penalize sellers for not complying with their rules. For example, sellers who do not follow the strict barcode label specifications for FBA stock will be charged a labeling fee by Amazon. Sellers who have not prepped products per the strict packaging and prep guidelines are charged an unplanned FBA preparation fee.
Package Preparation Fees
Of course, for an additional fee, you can always opt to have Amazon prep and package products for you. This can either prevent hassle for your business or incur unnecessary extra costs, depending on your margins and order volume. Note: This is intended to serve as a high-level overview and is by no means comprehensive. Amazon FBA also includes additional potential fees. For more information, see Amazon’s Seller Central documentation.
How to calculate Amazon FBA Seller Referral Fees
As is clear at this point, all Amazon sellers pay fees. Amazon’s Seller Referral Fees are 15%of the selling price of the product when you sell something on Amazon via the Professional plan. For example, Amazon would take a $15 cut from the sale if your product sold for $100, leaving you with $85 in revenue before other fees. But there’s more to Amazon FBA than selling fees, as you now know. By selling and shipping via Amazon FBA, are you leaving money on the table or even losing money? Make sure you do the right research and calculations for each product you sell, whether you are launching a new product or are a veteran FBA seller. This involves taking all the above fees into account, plus order sales, cost of development, cost of the platform, and more. Since FBA fees are so unpredictable, you may find that your earnings are lower than expected, or even that you are barely breaking even, if you don’t stay on top of how much you pay for Amazon’s services.
FBA Global Profit Calculator
We’ve developed an Product Cost Sheet to show you how much you spend on Amazon FBA. Follow the instructions below. This template is designed to help you understand the profitability of each specific product on a per-unit basis. And that’s what knowing your unit cost is: your revenue, profit, and costs on a per-unit basis. The Excel Spreadsheet will be useful if you already have a products selling and for those who are just starting their journey in Amazon FBA.
1. Enter your Product and Order Details
Enter the following:
- Number of orders per month
- Average number of items per order
- Average sale price per item
- Average production cost per item
- Average item weight and dimensions
The weight and dimensions allow the calculator to compute your fees for fulfillment and storage. Margins, profitability, and seller fees are the cost, pricing, and order information factors that are used in the calculations.
2. Discover your FBA Costs
After you enter the details above your monthly costs for Amazon FBA will be calculated.
3. Review Monthly Cost and Profit Breakdowns
Next, based on the order and product details you have entered above, you’ll see a complete overview of each monthly line item charged. This breakdown will provide insight into where switching to an e-commerce platform and shipping through FBA Global will reduce costs the most during the inventory storage and fulfillment process.
Amazon FBA Fees – FAQs
Still confused by Amazon FBA fees? You’re not alone! Below we answered frequently asked Amazon FBA fee questions.
How does Amazon FBA work? On the Amazon marketplace, sellers using FBA sell their goods and store their inventory in Amazon’s fulfillment centers. For inventory storage space, FBA sellers pay Amazon. If a customer buys the product from Amazon, Amazon lowers the sale price of the product by 15%. The order is then picked, packed, and delivered by Amazon in an Amazon-branded package or poly mailer to the customer, and a fixed delivery fee is paid to the seller.
Is there a monthly fee for Amazon FBA? The only FBA fee paid monthly is the monthly storage fee for the inventory. There is no extra monthly charge for FBA use.
How much is the Amazon seller fee? To sell on the market, all Amazon FBA sellers must sign up for an account. Based on the monthly order amount, there are two options for Amazon sellers to choose from: the Consumer plan, at $0.99 per item sold, and the Professional plan, at $39.99 per month.
- Single individual (selling less than 40 items a month):· No monthly charge for sellers· $0.99 fee for each sold item· Depending on the category, variable post-sale fees
- Professional (more than 40 items per month for sale):· Monthly $39.99 subscription fee· Referral fee for each sold item (usually 15% of the purchase price of the product)· Variable post-sales charges based on shipping information
FBA Global Pro Tip:
You can sign up for an individual seller’s account to test a product before you sign up for a Professional account. That said, as soon as you are serious about becoming an Amazon FBA seller, subscribe to a Professional Account. Thank you for your continued visits to FBA Global!
If you have comments or questions on improving your Amazon FBA profitability or Amazon FBA Training questions in general, please reach out to FBA Global directly! Feel free to leave any feedback you have in the Comments Section and we’ll follow up shortly! All the Best!
For more information on Amazon FBA Fees, head over to our Amazon Fee category. If you have any questions about an upcoming Amazon Product Research, leave a comment or email the FBA Global team and we’ll follow up shortly!
For detailed information on how to become an Amazon Seller, we answer that and what is Amazon FBA in the Guide to Selling section.