Amazon Fees & Charges Explained

It's likely obvious to even the most novice seller that selling on Amazon isn't free. However, it can feel a little more enigmatic just how, where, when, and how much Amazon takes. The fees that Amazon charges third-party vendors are broken out as follows:

• Referral fees: The proportion of your sales price that Amazon takes out of your seller account following a sale is known as Amazon's "cut" or commission. Depending on the product type, they can range from 8 to 45%.
• Subscription or per-item fees: Individuals sellers pay $0.99 on each transaction, while professional sellers pay $39.99 per month to sell on the platform. Similar to referral fees, these are deducted from your seller account rather than being paid up ahead.
• Refund administration fees: You must pay $5 or 20% of the returned amount, whichever is lower, when you receive a refund from Amazon.
• FBA Fulfillment Fees: Fees paid by FBA sellers to Amazon for fulfillment (including delivery) are known as FBA fulfillment fees. For the majority of products up to three pounds, they range from $3.06 to $6.81.
• FBA storage fees: For goods stored in Amazon's fulfillment centers, FBA sellers are required to pay either monthly or recurring storage fees. (For additional information on these rates, visit our comprehensive guide to Amazon FBA costs.)
• Additional miscellaneous fees: FBA sellers may also be charged for inbound placement services and low-level inventory fees.

Thousands of vendors successfully manage these fees while continuing to turn a profit. Profitability can be lowered or even destroyed if these hidden and not-so-hidden costs are not taken into consideration.