Amazon Seller Fees Explained: Complete Breakdown (2026)

Amazon fees can make or break your profitability. A product that looks like a winner with 30% margins might actually lose money once you account for all fees.

This guide breaks down every fee Amazon charges, with current 2026 rates and real examples. Understanding fees before sourcing products is essential—not optional.

Why Fees Matter So Much

New sellers consistently underestimate fees. Here's a common scenario:

What they think:

• Buy product for $10
• Sell for $25
• Profit: $15 (60% margin!)

What actually happens:

• Buy product for $10
• Sell for $25
• Referral fee (15%): -$3.75
• FBA fee: -$4.50
• Storage, prep, inbound: -$1.25
• Actual profit: $5.50 (22% margin)

Still profitable, but dramatically different from expectations. And that's assuming everything goes right—returns, storage fees, and price competition can erode margins further.

Fee Categories Overview

Let's examine each in detail.

Account Subscription Fees

Individual Plan

• Cost: $0.99 per item sold
• Best for: Sellers with <40 sales/month, testing the platform

Professional Plan

• Cost: $39.99/month (no per-item fee)
• Best for: Serious sellers, anyone with 40+ sales/month

The math: If you sell 40+ items monthly, Professional saves money. Beyond cost, Professional unlocks essential tools: advertising, detailed reports, bulk listing, and API access.

Recommendation: Start with Individual if just testing. Switch to Professional when you're committed to building a business.

Referral Fees

Amazon's commission on every sale—the platform's primary revenue from third-party sellers.

How It Works

Referral fee = Sale price x Category percentage

The "sale price" includes the item price and any shipping charged to the customer (for seller-fulfilled orders).

Referral Fee Rates by Category (2026)

Minimum Referral Fee

Most categories have a minimum referral fee of $0.30. For very low-priced items, this minimum kicks in.

Example: A $2.00 item with 15% referral fee would be $0.30 (not $0.30 calculated fee, which would only be $0.30).

Category Matters

Selling in the right category significantly impacts margins:

• $20 electronics item: $1.60 referral fee (8%)
• $20 home & kitchen item: $3.00 referral fee (15%)

Same price, almost double the fee difference.

FBA Fulfillment Fees

If you use Fulfillment by Amazon (FBA), Amazon charges per-unit fees for picking, packing, and shipping orders.

How FBA Fees Work

FBA fees are based on:

1. Product size tier (dimensions and weight)
2. Shipping weight (actual or dimensional, whichever is greater)

Size Tiers (2026)

FBA Fee Rates (2026 Non-Peak)

Small Standard Size:

Large Standard Size:

Large Bulky:

• $9.61 + $0.38 per lb above first lb

Extra-Large:

• 0-50 lb: $26.33 + $0.38 per lb above first lb
• 50-70 lb: $40.12 + $0.75 per lb above 51 lb
• 70-150 lb: $54.90 + $0.75 per lb above 71 lb

Apparel Fees

Clothing has slightly different rates—generally $0.10-$0.20 lower than non-apparel in the same size tier.

Peak Season Surcharges

During Q4 (October 15 - January 14), FBA fees increase by approximately $0.20-$1.00 per unit depending on size.

Storage Fees

FBA inventory sitting in Amazon's warehouses incurs monthly storage fees.

Monthly Storage Rates (2026)

How Storage Is Calculated

Storage fee = (Cubic feet) x (Daily average units) x (Monthly rate) / (Days in month)

Example:

• Product dimensions: 10" x 8" x 4" = 0.19 cubic feet
• 100 units stored average in March
• Storage fee: 0.19 x 100 x $0.78 = $14.82/month

Aged Inventory Surcharge

Inventory stored 181+ days incurs additional fees:

The lesson: Don't send slow-selling inventory to FBA. Aged inventory fees will eat your profits.

Other FBA Fees

Removal and Disposal Fees

Getting inventory out of FBA:

Return Processing Fees

For categories with free returns (apparel, shoes, watches, etc.):

• Fee equals FBA fulfillment fee per returned unit

Unplanned Service Fees

If your products arrive at FBA improperly prepped:

Avoid these: Prep correctly before shipping.

Inbound Placement Service Fee

Amazon may split your shipment across multiple fulfillment centers. You can pay to send to fewer locations:

• Minimal splits: $0.27-$1.58/unit depending on size
• Partial splits: $0.15-$0.68/unit depending on size

Seller-Fulfilled (FBM) Fees

If you fulfill orders yourself (FBM or SFP), you avoid FBA fees but face other costs:

What You Still Pay

• Referral fees (same as FBA)
• Account subscription (same as FBA)
• Your own shipping costs
• Packaging materials
• Labor costs

Shipping Credits

Amazon provides shipping credits for seller-fulfilled orders, but they often don't cover actual shipping costs—especially for heavy items.

When FBM Makes Sense

• Very large/heavy items where FBA fees are extreme
• Slow-selling items (avoid storage fees)
• Items you already stock for other channels
• Testing products before committing to FBA

Hidden and Unexpected Costs

Beyond Amazon's direct fees:

Prep Costs

• DIY supplies: Labels, polybags, boxes (~$0.30-$0.75/unit)
• Prep center: $0.75-$2.00/unit for full prep

Inbound Shipping

Shipping inventory to Amazon FBA:

• UPS/FedEx partnered rates: $0.30-$1.00/unit
• LTL for pallets: Lower per-unit but minimum volumes

Returns

• Customer returns reduce profit
• Returned items may be unsellable
• Return processing fees for applicable categories

Advertising

PPC advertising often necessary for visibility:

• Typical ACoS (advertising cost of sale): 15-30%
• Factor into profitability calculations

Reimbursement Shortfalls

Amazon sometimes loses or damages inventory. Reimbursements don't always cover full value.

Calculating True Profitability

The Complete Formula

Net Profit = Sale Price
           - Product Cost
           - Referral Fee
           - FBA Fee (if applicable)
           - Prep Cost
           - Inbound Shipping
           - Storage (allocated per unit)
           - Advertising (allocated per unit)
           - Returns allowance

Example Calculation

Product: Kitchen gadget, small standard size (8 oz)

This is a healthy deal. But notice how the profit went from apparent $16.99 gross margin to $7.51 actual profit.

Why Spreadsheets Don't Scale

For one product, manual calculation works. For analyzing a supplier price list with 5,000 products? Impossible.

This is why tools like RocketSource exist. Upload a CSV with costs, get back profitability analysis for every product—automatically calculating referral fees, FBA fees, and net profit.

Strategies to Minimize Fees

Choose Categories Wisely

8% referral fee (electronics) vs 15% (most categories) makes a massive difference at scale.

Optimize Product Size

Small standard products have the lowest FBA fees. When possible, source products that fit this tier.

Manage Inventory Velocity

• Don't overstock slow sellers
• Remove aged inventory before surcharges hit
• Use sales velocity to predict optimal quantities

Negotiate Better Costs

Lower product costs = higher margins after fixed fees:

• Volume discounts from suppliers
• Better shipping rates at scale
• Prep center negotiations

Use FBA Strategically

Not everything belongs in FBA:

• Slow sellers: Consider FBM or don't carry
• Heavy/large items: Calculate if FBA makes sense
• Seasonal items: Time inventory carefully

Frequently Asked Questions

What's the total cost to sell on Amazon?

It depends on your model, but typical costs:

• Account: $39.99/month (Professional)
• Referral fees: 8-15% of sale price
• FBA fees: $3-$8 per typical unit
• Total take: 20-35% of sale price goes to Amazon

Are Amazon fees going up?

Yes, gradually. FBA fees have increased 2-5% annually in recent years. Storage fees, especially aged inventory, have increased more substantially. Budget for fee increases.

How do I calculate fees before buying inventory?

Use Amazon's Revenue Calculator for individual products. For bulk analysis, use tools like RocketSource that calculate fees automatically across thousands of products.

What's the minimum profit margin I should target?

Most successful sellers target:

• Net profit margin: 15%+ minimum, 20%+ preferred
• ROI: 30%+ minimum, 50%+ preferred

Below these thresholds, there's little room for error.

Do fees differ by marketplace?

Yes. Each Amazon marketplace (US, UK, Germany, etc.) has its own fee structure. International marketplaces generally have similar structure but different specific rates.

Next Steps

• How to Calculate FBA Fees — Step-by-step calculation guide
• Amazon Wholesale Guide — Build a profitable wholesale business
• Free UPC Converter — Start analyzing products today

Want to calculate fees automatically across thousands of products?

Start Free with RocketSource →

Upload supplier price lists, get instant profitability analysis including all Amazon fees—no credit card required.