Amazon FBA Fees: Cost of Selling on Amazon in 2024

Introduction

There are many different Amazon fees you’ll need to remember as a seller, including the storing, packing, and shipping fees. If you’re a member of the FBA program, you can gain the Prime badge, making it more likely that customers buy from you. However, you won’t be able to avoid referral fees, fulfillment fees, storage fees, and long-term storage fees for items you’re planning on holding on to for a while.

Regardless of these fees, though, the incredible convenience and massive customer base on Amazon still makes FBA a great online business to invest in. Keep in mind that there will always be business costs; the key is determining if, at the end of the day, your business will be lucrative.

Take a look at these Amazon fees below (even going beyond FBA) to fully understand what you’ll be faced with when selling on Amazon.

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Sales Fees

If you’re focused on increasing Amazon sales, there are two main sales fees you’ll have to pay every time you sell one of your products: referral fees and closing fees. Additionally, if your order is returned by the buyer, you’ll have to pay administration fees, as well.

Each of these three fees can vary based on what category the item you’re selling belongs in, which is why getting an accurate idea of the specific costs can be a little difficult. Luckily, we’ve included a helpful table that goes over each (along with an example).

Seller FeeAmountBased onExample
Referral FeeRanges from 8%–45% (most sellers pay 15%), charged if minimum referral fee is less than referral percentage of saleCategoryHome and Kitchen products:
 
Referral fee percentage: 15%
 
Minimum referral fee: 30 cents
Closing Fee$1.80All Media CategoriesBooks, music, video, and DVD products:

$1.80 closing fee + referral fee
Refund Administration FeeLesser of $5 or 20% of referral feeOriginal selling price of refunded itemsA refunded item with a $10 referral fee:
 
Refund administration fee is $2 (20% of $10)

Referral Fee

The commission paid to Amazon for every item you sell, the referral fee percentage can range from anywhere as low as 6% to a whopping 45% of every sale. However, referral fees for media products specifically are 15% of the total sales price of a product, not the item price by itself.

For most product categories on Amazon, the referral fee—which is usually applied on a per-item basis—is a mere $1 (and $2 for jewelry). Bear in mind that there is no small, minimum referral fee for media products, as they incur additional charges (as stated above).

Also keep in mind that, starting on January 15th, 2024, Amazon reduced referral fees for products in the apparel category that are priced under $20. 

Additionally, for items that are priced at under $15, they will also decrease referral fees from the previous 17% to 5%.

The last change to referral fees Amazon made is to also change the percentage from 17% to 10% for products that are priced within the range of $15 and $20.

Take a look at the table below to see the current referral fees post-January 2024 to get an accurate idea of what you can expect to pay.

Fee categoriesAmazon deducts the greater of the applicable referral fee percentage or applicable per-item minimum referral fee.
Referral fee percentagesApplicable minimum referral fee(applied on a per-unit basis unless otherwise noted)
Amazon Device Accessories45%$0.30
Amazon Explore30% for Experiences$2.00
Automotive and Powersports12%$0.30
Baby Products8% for products with a total sales price of $10.00 or less, and15% for products with a total sales price greater than $10.00$0.30
Backpacks, Handbags, and Luggage15%$0.30
Base Equipment Power Tools12%$0.30
Beauty, Health and Personal Care8% for products with a total sales price of $10.00 or less, and15% for items with a total sales price greater than $10.00$0.30
Business, Industrial, and Scientific Supplies12%$0.30
Clothing and Accessories17%$0.30
Compact Appliances15% for the portion of the total sales price up to $300.00, and8% for any portion of the total sales price greater than $300.00$0.30
Computers8%$0.30
Consumer Electronics8%$0.30
Electronics Accessories15% for the portion of the total sales price up to $100.00, and8% for any portion of the total sales price greater than $100.00$0.30
Everything Else15%$0.30
Eyewear15%$0.30
Fine Art20% for the portion of the total sales price up to $100.00,15% for the portion of the total sales price greater than $100.00 up to $1,000.00,10% for the portion of the total sales price greater than $1,000.00 up to $5,000.00, and5% for the portion of the total sales price greater than $5,000.00
Footwear15%$0.30
Full-Size Appliances8%$0.30
Furniture15% for the portion of the total sales price up to $200.00, and10% for any portion of the total sales price greater than $200.00$0.30
Fee categoriesAmazon deducts the greater of the applicable referral fee percentage or applicable per-item minimum referral fee.
Referral fee percentagesApplicable minimum referral fee(applied on a per-unit basis unless otherwise noted)
Gift Cards20%
Grocery and Gourmet8% for products with a total sales price of $15.00 or less, and15% for products with a total sales price greater than $15.00
Home and Kitchen15%$0.30
Jewelry20% for the portion of the total sales price up to $250.00, and5% for any portion of the total sales price greater than $250.00$0.30
Lawn and Garden15%$0.30
Lawn Mowers and Snow Throwers15% for products with a total sales price of up to $500.008% for products with a total sales price greater than $500.00$0.30
Mattresses15%$0.30
Media – Books, DVD, Music, Software, Video15%
Musical Instruments and AV Production15%$0.30
Office Products15%$0.30
Pet Products15%, except 22% for veterinary diets$0.30
Sports and Outdoors15%$0.30
Tires10%$0.30
Tools and Home Improvement15%$0.30
Toys and Games15%$0.30
Video Game Consoles8%
Video Games and Gaming Accessories15%
Watches16% for the portion of the total sales price up to $1,500.00, and3% for any portion of the total sales price greater than $1,500.00$0.30

Closing Fee

Along with a referral fee, Amazon sellers will be charged a closing fee if they’re selling products in media categories. This fee is simply a flat $1.80 and is added to the referral fee for items in those media categories such as:

  • Books
  • DVDs
  • Music
  • Software (including video games)
  • Video
  • Video game consoles

Additionally, the closing fee is also known as the ‘variable’ fee due to it being charged as a percentage of the sale price on Amazon in the past.

Refund Administration Fee

If and when you refund a customer for any order for which you received payment, Amazon will then happily refund you the referral fee amount you paid for the item you sold, minus the administration fee (usually $5 or 20% of the applicable referral fee). Whether you pay the $5 or 20% is determined by whichever is less.

Account/Subscription Fee

Amazon offers its sellers the choice between two different seller accounts: individual and professional seller accounts. Both the fees and features of each type of account are specifically created for those accounts and the method in which each account operates.

However, both types of accounts allow you to:

Keep in mind, though, that professional sellers gain access to many other crucial features, including:

  • The ability to add multiple users to your account
  • The ability to get the Featured Offer (aka the Buy Box)
  • Participate in global, local, and renewed selling programs
  • The ability to design Lightning and 7-Day Deals
  • And much more

Check out the full list of benefits for each account type here to determine which one is best for you and your specific selling goals:

SubscriptionIndividual ($0.99 per item sold)Professional ($39.99 per month)
Acccess Seller University trainings and Help pagesYesYes
Get help from Seller SupportYesYes
List products one at a timeYesYes
Manage inventory one product at a timeYesYes
Manage seller-fulfilled ordersYesYes
Set static pricesYesYes
Use tools like the Revenue Calculator, Amazon Seller App, and Service Provider NetworkYesYes
Add multiple users to your accountYes
Apply to sell restricted productsYes
Build your brand with enhanced product pages, a digital store, and other toolsYes
Compete to be the Featured OfferYes
Create promotions and couponsYes
Integrate selling apps with SP-APIYes
List and manage your inventory in bulkYes
Participate in programs like Global Selling, Local Selling, and RenewedYes
Set dynamic pricesYes
Set your own shipping fees for non-media productsYes
Use B2B tools to engage business customersYes
Use business reports to track sales, inventory, and ordersYes
Optional ProgramsIndividual ($0.99 per item sold)Professional ($39.99 per month)
Store inventory and ship customer orders using Fulfillment by Amazon (FBA)YesYes
Advertise your products and brands using Amazon AdsYes
Create Lightning and 7-Day DealsYes
Get paid in your local currency with Amazon Currency ConverterYes
Level up brand protection with TransparencyYes
Participate in programs like Amazon Lending, Customer Service by Amazon, and Strategic Account ServicesYes
Ship ocean freight with Amazon Global LogisticsYes

Fulfillment Fees

Fulfillment by Amazon (FBA)

If you’re an Amazon FBA seller, you won’t have to pay for shipping, handling, or packaging your items. Rather than do all this work yourself, Amazon will have their warehouse employees do all this for you.

Although, as you can imagine, this is not for free; Amazon will charge you seller fees for your items based on the size and weight of your products.

Another thing to note is that starting on February 5th, 2024, Amazon began to introduce new rate cards for standard-sized products, while introducing tiers for large bulky and extra-large items.

Also, beginning on April 15th, 2024, the FBA fulfillment is going to be reduced for both standard-sized and large-bulky products. 

Check out the chart below to take a look at the new rates for the different-sized item tiers to start planning your new selling strategy.

Size tierShipping weight2024 fulfillment fee(January 15, 2024 to February 4, 2024)Size tierShipping weight2024 fulfillment fee(February 5, 2024 to April 14, 2024)2024 fulfillment fee(Starting April 15, 2024)
Small standard4 oz or less$3.22Small standard2 oz or less$3.22$3.06
2+ to 4 oz$3.31$3.15
4+ to 8 oz$3.404+ to 6 oz$3.40$3.24
6+ to 8 oz$3.49$3.33
8+ to 12 oz$3.588+ to 10 oz$3.58$3.43
10+ to 12 oz$3.68$3.53
12+ to 16 oz$3.7712+ to 14 oz$3.77$3.60
14+ to 16 oz$3.82$3.65
Large standard4 oz or less$3.86Large standard4 oz or less$3.86$3.68
4+ to 8 oz$4.084+ to 8 oz$4.08$3.90
8+ to 12 oz$4.248+ to 12 oz$4.32$4.15
12+ to 16 oz$4.7512+ to 16 oz$4.75$4.55
1+ to 1.5 lb$5.401+ to 1.25 lb$5.19$4.99
1.25+ to 1.5 lb$5.57$5.37
1.5+ to 2 lb$5.691.5+ to 1.75 lb$5.75$5.52
1.75+ to 2 lb$6.00$5.77
2+ to 2.5 lb$6.102+ to 2.25 lb$6.10$5.87
2.25+ to 2.5 lb$6.28$6.05
2.5+ to 3 lb$6.392.5+ to 2.75 lb$6.45$6.21
2.75+ to 3 lb$6.86$6.62
3+ lb to 20 lb$7.17 + $0.16 per half-lb interval above first 3 lb3+ lb to 20 lb$7.25 + $0.08 per 4 oz interval above first 3 lb$6.92 + $0.08 per 4 oz interval above first 3 lb
Size tierShipping weight2024 fulfillment fee
Small oversize70 lb or less$9.73 + $0.42/lb interval above first lb
Medium oversize150 lb or less$19.05 + $0.42/lb interval above first lb
Large oversize150 lb or less$89.98 + $0.83/lb interval above first 90 lb
Special oversize1Over 150 lb$158.49 + $0.83/lb interval above first 90 lb
Size tierShipping weight2024 fulfillment fee (February 5, 2024 to April 14, 2024)2024 fulfillment fee (Starting April 15, 2024)
Large bulky0 to 50 lb$9.73 + $0.42/lb interval above first lb$9.61 + $0.38/lb interval above first lb
Extra-large 0 to 50 lb0 to 50 lb$26.33 + $0.38/lb interval above first lb$26.33 + $0.38/lb interval above first lb
Extra-large 50+ to 70 lb50+ to 70 lb$40.12 + $0.75/lb interval above 51 lb$40.12 + $0.75/lb interval above 51 lb
Extra-large 70+ to 150 lb70+ to 150 lb$54.81 + $0.75/lb interval above 71 lb$54.81 + $0.75/lb interval above 71 lb
Extra-large 150+ lb1150+ lb$194.95 + $0.19/lb interval above 151 lb$194.95 + $0.19/lb interval above 151 lb

Storage Fees

It’s recommended by Amazon themselves that their FBA sellers maintain a healthy inventory level (although some sell on Amazon without any inventory). This is to minimize their fulfillment and shipping costs.

Also, in order to encourage these healthy inventory levels among their sellers, Amazon is also creating a low-inventory-level fee that affects any standard-sized products that have low customer demand. While it can be hard to find high-demand products on Amazon, it will save you from having to pay this extra fee. 

This fee is going to be added to the list of other Amazon fees starting on April 1st, 2024. Amazon sellers who wish to know more can take a close look at the table below:

2024 size tierShipping weightLow-inventory-level fee
0-14 historical days of supply14-21 historical days of supply21-28 historical days of supply
Small standardUp to 16 oz$0.89$0.63$0.32
Large standardUp to 3 lb$0.97$0.70$0.36
Large standard3+lb to 20 lb$1.11$0.87$0.47

Besides the new updates to the storage fees, Amazon has stated that non-peak monthly storage for products that are classified as standard-sized will be reduced. This reduction in price can be expected to average at $0.09 per cubic foot starting on April 1st, 2024.

Keep in mind that the monthly storage fees for non-standard-sized products will, unfortunately, remain the same.

One last thing to note is that Amazon is also planning on introducing more granular fee tiers to the existing storage utilization surcharge. This will primarily affect professional sellers who have more inventory than individual sellers.

Prior to April 1, 2024
Storage monthStandard-sizeLarge bulky / Extra-large(previously called oversized)
January-September$0.87 per cubic foot$0.56 per cubic foot
October-December$2.40 per cubic foot$1.40 per cubic foot
April 1, 2024, and after
Storage monthStandard-sizeLarge bulky / Extra-large
January-September$0.78 per cubic foot$0.56 per cubic foot
October-December$2.40 per cubic foot$1.40 per cubic foot

Fulfillment and Shipping Fees

Covering a wide range of helpful services such as picking orders, packaging, shipping, and handling customer service, the existing fulfillment by Amazon fee structure starts at $3.22 per unit and goes up to $200+ for specific, oversized items. Keep in mind, though, that items that are priced under $10 will qualify for the Low-price FBA program. This program helps reduce your fulfillment fees, so it may be a good idea to seriously consider it for your inexpensive items.

Regarding the FBA fee structure, the factors that determine this include your product’s specific size, weight, quantity, and category.

Additionally, sellers who are multichannel should be aware that FBA charges more expensive fees whenever they have to fulfill non-Amazon orders.

Fulfillment by Amazon fees also add a higher fee for items in particular categories including apparel and dangerous goods no matter if you’re selling on Amazon or not.

Yet another piece of FBA fee information is that, during the peak holiday season—Oct 15-Jan 14—these FBA charges will be slightly higher, so plan accordingly.

While the above FBA fees already exist, Amazon is planning on altering and adding to them:

  • Starting in February 2024, FBA discounts in the range of 4 cents to $1.32 per item began to apply to any products shipping in their own packaging via the Ships in Product Packaging program.
  • Beginning in March 2024, a brand new, inbound placement service fee was added. This averages 27 cents per unit for standard items and $1.58 per unit for large, bulky items. However, sellers can help reduce or even eliminate this charge by distributing their existing inventory across multiple Amazon warehouses.
  • In April 2024, FBA fees are scheduled to decrease by an average of 20 cents per unit for standard items and 61 cents per unit for larger items. However, a new, low-inventory-level fee will be added for standard items whenever a seller’s inventory levels are seen to be constantly low relative to the amount of sales.
  • Also in April, non-peak storage fees are going to be dropped by an average of 9 cents per cubic foot/month for all standard items.

Inbound & Outbound Placement Service Fee

Inbound fees are fees that sellers are required to pay Amazon for the privilege of using the company to fulfill their products.

Starting on March 1st, 2024, Amazon began implementing an FBA inbound placement service fee for standard and large-bulky-sized items. This was created to reflect the cost of distributing the sellers’ inventory to fulfillment centers close to buyers.

Additionally, Amazon will now charge separately for both inbound and outbound requirements. However, they are lowering their outbound fees because of this.

For these outbound fees, the e-commerce giant is making their rate card more granular specifically for standard-sized products while revising the existing structure and eligibility criteria for non-standard-sized products. This last comes in the form of Large Bulky and Extra-Large size tiers.

The tables below lay out the new inbound placement service fees:

SizeWeightFBA Inbound Placement ServicesFBA Inbound Placement Services
Premium ServiceDiscounted Service
Send to a single locationSend to multiple locations
Small StandardMax 15x12x0.75 inches16 oz or less$0.23-$0.34Receive a discount up to 100% based on number of shipments and inbound locations
Large standardMax 18x14x8 inches12 oz or less$0.23-$0.34Receive a discount up to 100% based on number of shipments and inbound locations
Large standardMax 18x14x8 inches12+ oz to 1.5 lb$0.27-$0.41Receive a discount up to 100% based on number of shipments and inbound locations
Large standardMax 18x14x8 inches1.5+ lb to 2 lb$0.32-$0.49Receive a discount up to 100% based on number of shipments and inbound locations
Large standardMax 18x14x8 inches3+ lb to 20 lb$0.42-$0.68Receive a discount up to 100% based on number of shipments and inbound locations
SizeWeightFBA Inbound Placement ServicesFBA Inbound Placement Services
Premium ServiceDiscounted Service
Send to a single locationSend to multiple locations
Large Bulky Size
Max 59x33x3 inches
5 lb or less$2.16 to $2.67Receive a discount up to 100% based on number of shipments and inbound locations
Large Bulky Size
Max 59x33x3 inches
5+ lb to 12 lb$2.55 to $3.15Receive a discount up to 100% based on number of shipments and inbound locations
Large Bulky Size
Max 59x33x3 inches
12+ lb to 28 lb$3.19 to $3.95Receive a discount up to 100% based on number of shipments and inbound locations
Large Bulky Size
Max 59x33x3 inches
28+ lb to 42 lb$4.13 to $5.11Receive a discount up to 100% based on number of shipments and inbound locations
Large Bulky Size
Max 59x33x3 inches
42+ lb to 50 lb$4.85 to $6.00Receive a discount up to 100% based on number of shipments and inbound locations

Ships in Product Packaging (SIPP) Discount

The SIPP program gives sellers the opportunity to both test and qualify their products to ship to their customers using the seller’s own unique brand packaging and not Amazon’s. This gives sellers the great opportunity to provide a heightened customer experience, translating to potentially increased sales.

In order to reduce cost savings whenever one of your products is able to be shipped in its existing packaging, Amazon has started to offer a fulfillment fee discount that ranges from $0.04 to $1.32—this exact number depends on the specific item’s size and weight—for items that are in the Ships in Product Packaging (SIPP) program.

Fulfillment by Merchant (FBM)

By using the Amazon FBM, sellers are responsible for storing, packing, and shipping their own products to their customers without any help from Amazon. This means that Amazon cannot charge a shipping or fulfillment fee for FBM sellers. But don’t get too excited; sellers who choose to use this method often have to think about storage space for their inventory, boxes, tape, and postage for shipping, and possibly having to hire employees to help move the ready-to-ship inventory.

And, without the Prime badge that helps garner more sales, it’s likely that the FBM program is not as lucrative as Amazon FBA for most sellers.

Seller-Fulfilled Prime (SFP)

If you decide to opt for Seller-fulfilled Prime (SFP), you’ll be required to store, pack, and ship your own products, just like FBM sellers. However, you’ll also have to follow Amazon’s guidelines for packaging and quick delivery to ensure your goods can be accepted into the Prime program.

Regarding the SFP fees, Amazon charges 2% for every one of your SFP orders to have the privilege to display the Prime badge. Since this is a great way to build an Amazon customer base, many opt to join the program. 

Additionally, this 2% fee is stacked on top of both your fulfillment and shipping expenses, as well as your other Amazon fees, forcing some sellers to reassess their strategy for their top-selling Amazon products.

Along with an increasing number of fees to think about, SFP users have to comply with a long list of requirements such as one-day and two-day Prime delivery, free standard shipping for every customer, and completely free returns on items weighing under 50 lbs.

Also, if you’re interested in joining this program, you’ll need to have completed the following tasks:

  • Self-fulfilled at least 100 packages using FBM
  • Gained and maintained a less than 2.5% cancellation rate
  • Possess a valid tracking rate that is greater than 95%
  • Have less than 4% late shipments

Low-Level Inventory Fee

A new fee from Amazon, the e-commerce company is introducing a low-inventory-level fee for all standard-sized products beginning on April 1st, 2024. This new fee only applies if you have a consistently low level of inventory relative to your unit sales. This is because low inventory prevents Amazon from effectively distributing your products across its vast network, which in turn increases delivery times and shipping costs.

Luckily, sellers can easily avoid this fee by simply maintaining at least 4 weeks’ worth of inventory relative to their sales.

Shipping Fees

For all self-fulfilled orders through Amazon, shipping fees apply to media products such as books, music, video, DVDs, software, and more sold by professionals. Additionally, these shipping fees apply to all products sold by individuals, not just media products.

Amazon has based these rates on both the specific product category your item is in, and the shipping service you selected.

A last thing to remember is that sellers are charged for fulfillment, storage, optional services, and selling fees for all Amazon-fulfilled orders 

Miscellaneous Fees

Closing Fees

Along with the referral fee, all media items on Amazon incur a closing fee of $1.80 per item.

High-Volume Listing Fee

If you’re a seller that has a massive inventory—100,000 listed products or more—you’ll be charged an additional monthly fee of 0.005 cents per qualifying item. This important charge occurs at the same time of year as FBA storage fees so, if you’re a big Amazon seller, be on the lookout.

Rental Book Service Fee

If you’re a seller who rents textbooks on Amazon, you’ll be required to pay a $5 rental book service for every textbook you sell.

As with referral fees, these rental book service fees are deducted whenever someone purchases your book, meaning that you won’t have to pay these in advance.

Returns Processing Fee

Beginning on June 1st, 2024, a returns processing fee for high-return rate products will be added to the list of fees Amazon sellers can expect. This particular fee affects every high-return rate product in every Amazon category except apparel and shoes (the fees for these categories will remain the same).

FBA calculator on Helium 10

How to Calculate Amazon Fees

In order to clearly understand and figure out all your expected Amazon fees, you’ll want to find a calculator specially designed to do just that, which is where Helium 10 comes in! With our incredibly useful FBA calculator (that also works for FBM), you’ll be able to easily add up all the many Amazon fees in a fraction of the time it would take you without using a calculator.

By simply putting in the ASIN you want to analyze, you’ll be able to discover key profitability factors including the net profit and profit margin of that particular ASIN in less than a minute.

What’s even better is that this incredible tool that can lead you onto the path to success is part of our FREE Helium 10 Chrome Extension. This extension can be accessed on Amazon or Walmart and, in addition to the Profitability Calculator, also contains the Xray product research tool, making the exhaustive research phase pass much more quickly.

FBA calculator on Amazon

Regarding the Profitability Calculator itself, you can also input different numbers into the already populated fields that appear. This is useful because it allows you to design mock variants of the item in question to determine if it’s still profitable to sell the item in a way no one has before.

Conclusion

It’s important to not become discouraged while reading through all the Amazon fees sellers have to contend with. Remember, if selling on Amazon was easy, everyone would do it.

While learning to sell on Amazon takes a serious amount of both time and effort, it definitely can be a profitable opportunity. However, you’ll need to understand the important costs associated with e-commerce selling so that you form your selling strategy around them.

No matter if you’re dealing with referral fees, fulfillment fees, storage costs, or other necessary expenses, a complete and thorough financial understanding is crucial for lasting success on Amazon.

We look forward to seeing you thrive in the dynamic and growing world of e-commerce!

FAQs

Frequently Asked Questions

Amazon requires that sellers pay a referral fee that is between 0% and 45% depending on the category the sold item belongs to. Also, most Amazon products have a 15% referral fee. The only category to have a 45% referral fee is Amazon Device Accessories.

Yes, you can create an Amazon Individual seller account completely free. However, you’ll be charged if you make a sale. Furthermore, Amazon charges these individual sellers 99 cents for every sale, plus an additional referral fee and occasional platform cost (depending on where you made the sale).

You can avoid storage fees by keeping your inventory for up to 3 months in an Amazon warehouse, clearing out unpopular products, ensuring Amazon is categorizing your products correctly, and being aware of rising fees during the Oct 15-Jan 14 holiday season.

Yes, they do. Fulfillment fees also include picking and packing your orders, handling, customer service, and product returns. Also, specific shipping costs are determined based on your item’s weight and dimensions. The shipping weight is found based on the item’s unit or dimensional weight.

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Copywriter

A dedicated copywriter with nearly 4 years of experience, Josh works with Amazon sellers and helps his clients succeed on the platform.

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