How to Much Does Amazon Charge to Sell?

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Amazon provides one of the most powerful online marketplaces in the world, offering access to millions of buyers every day. However, selling on Amazon comes at a cost. Understanding exactly how much Amazon charges to sell is essential before you list your first product. Between subscription fees, referral commissions, fulfilment costs, and hidden charges, the total can vary significantly depending on what and how you sell.

This article explains Amazon’s fee structure in depth, breaking down the different selling plans, listing fees, fulfilment options, and hidden costs that can affect profitability.

Understanding Amazon’s Selling Structure

Amazon offers two primary ways to sell: the Individual plan and the Professional plan. Both provide access to the same marketplace, but they differ in cost, features, and suitability for different seller types.

Individual Selling Plan

The Individual plan is designed for casual or small-scale sellers who plan to sell fewer than 35 items per month.

• Monthly subscription fee: None

• Per-item fee: £0.75 per sale (in addition to referral fees)

This option works best for those testing the waters or selling occasional products without the need for advanced reporting or bulk listings.

Professional Selling Plan

The Professional plan suits established sellers who expect consistent monthly sales.

• Monthly subscription fee: £25 (excluding VAT)

• No per-item fee

• Access to advanced tools such as bulk uploads, Amazon Advertising, and eligibility for the Buy Box

Professional sellers often see better long-term margins because they avoid the per-item charge, making it more cost-effective once sales volume increases.

Referral Fees

Amazon charges a referral fee on each item sold, which is a percentage of the total sale price including item cost and shipping. The percentage varies depending on the product category.

Typical UK referral fees include:

• Books: 15%

• Electronics: 7%

• Beauty and Personal Care: 8–15%

• Clothing and Accessories: 17%

• Home and Kitchen: 15%

Each category also has a minimum referral fee, usually £0.25 per item. The higher your selling price, the larger the referral fee amount will be, so it’s vital to calculate these costs when setting your retail prices.

Fulfilment Fees: FBA vs FBM

One of the biggest decisions Amazon sellers face is whether to fulfil orders themselves or use Amazon’s fulfilment service.

Fulfilment by Amazon (FBA)

With FBA, sellers send their inventory to Amazon’s fulfilment centres, and Amazon handles storage, packaging, delivery, and customer service. In return, sellers pay fees based on item size, weight, and storage time.

Typical FBA fees include:

• Fulfilment fee per item: Ranges from about £2 to £6 for standard-sized items, depending on dimensions and weight

• Monthly storage fees: Around £0.75 per cubic foot from January to September, and £2.40 per cubic foot from October to December (due to holiday season demand)

FBA also includes Prime eligibility, which can significantly increase visibility and conversion rates. However, these costs can add up quickly if you store large or slow-moving items.

Fulfilment by Merchant (FBM)

With FBM, you manage storage, packaging, and shipping yourself. This can be cheaper for low-volume or bulky products but requires more operational effort.

While FBM avoids FBA fulfilment and storage fees, sellers still pay referral commissions and may lose out on Amazon Prime visibility, which can affect sales performance.

Additional Amazon Selling Costs

Beyond subscription and referral fees, there are other charges sellers should understand.

Closing Fees

For media items such as books, DVDs, and video games, Amazon applies a fixed closing fee of £1 per item in addition to referral fees.

Refund Administration Fee

When a customer requests a refund, Amazon refunds the referral fee but deducts a refund administration fee of either £5 or 20% of the referral fee, whichever is lower.

High-Volume Listing Fee

For sellers listing over 2 million SKUs, Amazon charges a monthly high-volume listing fee. This typically applies only to large catalogues or enterprise-level merchants.

Long-Term Storage Fees

If inventory remains in Amazon’s fulfilment centres for more than 365 days, long-term storage fees apply. These are charged per cubic foot and can significantly impact profitability if slow-moving stock isn’t managed carefully.

Advertising and Promotions

While optional, most sellers use Amazon Advertising to improve visibility. Sponsored product ads operate on a cost-per-click basis, with average CPC rates in the UK ranging from £0.20 to £1.00 depending on competition. These costs can quickly add up but often deliver a strong ROI when managed strategically.

Currency Conversion and International Selling Fees

If you sell internationally, Amazon charges currency conversion fees of around 3.5% when transferring payments to your bank account. There may also be additional charges for using foreign marketplaces (for example, Amazon.com or Amazon.de).

Example: Calculating the True Cost to Sell on Amazon

To illustrate how Amazon’s charges stack up, let’s consider an example.

Imagine you sell a £25 homeware product through FBA.

• Referral fee (15%): £3.75

• FBA fulfilment fee: £3.00

• Storage cost (average): £0.20

• Total fees: £6.95

This means your actual net revenue per item would be around £18.05 before accounting for product cost, advertising, and other overheads.

Understanding these calculations helps you price effectively and avoid profit erosion.

How Amazon Fees Compare to Other Marketplaces

Amazon’s fee structure is generally higher than competitors like eBay or Etsy, but sellers gain access to a much larger buyer base and the power of Amazon’s fulfilment network. The platform’s convenience, traffic volume, and trust factor often justify the higher costs.

For sellers who optimise listings, maintain strong reviews, and use FBA effectively, Amazon can deliver a strong return on investment despite the fees.

How to Reduce Amazon Selling Costs

Although Amazon’s charges can seem steep, there are effective strategies to keep expenses under control.

1. Monitor Inventory Turnover – Avoid long-term storage costs by maintaining efficient stock levels and removing unsold items promptly.

2. Use Fulfilment Wisely – Choose FBA for small, fast-moving items and FBM for bulky or niche products.

3. Leverage Bulk Shipping to Amazon – Consolidating inventory shipments can reduce delivery costs to fulfilment centres.

4. Optimise Product Listings – High-quality images, accurate titles, and relevant keywords increase conversions, which helps offset fees.

5. Track Profit Margins Carefully – Use tools like Amazon Seller Central or third-party profit calculators to monitor costs and adjust pricing in real time.

6. Run Targeted Ad Campaigns – Focus ad spend on high-margin or best-selling products to avoid overspending on unprofitable listings.

The Importance of Understanding Fees Before Scaling

Many new sellers underestimate Amazon’s fees and overestimate profit margins. Once advertising, fulfilment, and refunds are factored in, margins can narrow significantly. Having a clear picture of the total cost structure ensures your business model is sustainable as you scale.

Experienced sellers review fee reports monthly, calculate net margins per SKU, and regularly reprice products to reflect cost changes. This discipline separates successful long-term sellers from those who burn through capital chasing volume.

Expert Advice for Amazon Sellers

Selling on Amazon can be highly profitable, but only when you understand the platform’s rules, fees, and algorithms. Many sellers focus solely on listing products and running ads but overlook the financial and strategic elements that determine long-term success. Amazon’s marketplace is dynamic, competitive, and ever-changing, which means every seller must stay informed, optimise pricing, and diversify traffic sources. Here are key strategies to help you manage your Amazon business more effectively and sustain profitability over time.

Factor in All Fees Before Setting Prices

One of the most common mistakes sellers make is failing to account for Amazon’s various fees before finalising product pricing. These costs include referral fees, fulfilment fees, storage fees, and potential return or refund charges. Depending on whether you use Fulfilment by Amazon (FBA) or handle shipping independently through Fulfilment by Merchant (FBM), the cost structure will differ significantly.

Before listing a product, calculate every potential expense using Amazon’s FBA Revenue Calculator or similar tools. This allows you to set prices that cover all costs while maintaining a healthy profit margin. For example, if your product sells for £25 but your combined fees and fulfilment costs total £10, you must ensure your cost of goods leaves enough room for profit. Ignoring even small costs like packaging or seasonal storage fees can add up and eat into your earnings. Establishing a pricing formula that includes all overheads keeps your business financially sustainable.

Review Amazon’s Fee Updates Regularly

Amazon regularly updates its fee structure, fulfilment policies, and referral rates, often once or twice a year. These changes can have a direct impact on your profit margins, especially if you sell in competitive categories where prices are tight.

Make it a habit to review Amazon’s official seller announcements and Seller Central updates at least quarterly. Understanding these changes early gives you time to adjust your pricing strategy, optimise product listings, or explore alternative fulfilment options. For example, if FBA storage fees increase during peak seasons, you might decide to switch certain items to FBM temporarily to control costs. Staying proactive rather than reactive ensures you’re not caught off guard by policy changes that could reduce your profitability.

Optimise Pricing and Keywords to Win the Buy Box

The Buy Box is where the majority of Amazon sales happen, and winning it requires a combination of competitive pricing, strong customer service, and optimised listings. While price is a major factor, it’s not the only one. Amazon’s algorithm considers delivery speed, seller rating, and inventory availability when deciding who earns the Buy Box position.

Start by using dynamic pricing strategies or automated repricing tools that adjust your prices based on competitor activity while maintaining profitability. However, avoid engaging in price wars that lower your margins unnecessarily. Focus on maintaining a balance between competitive pricing and perceived value.

At the same time, optimise your product listings for search visibility. Use accurate and descriptive keywords in your titles, bullet points, and descriptions. For example, if you sell running shoes, include terms like “men’s lightweight running shoes size 10 UK” to capture relevant search traffic. The combination of competitive pricing and keyword optimisation increases your visibility both in organic search results and in the Buy Box algorithm, helping you secure more conversions without relying entirely on paid ads.

Consider External Traffic to Diversify Sales Channels

While Amazon is a powerful sales platform, relying solely on its internal traffic can limit your growth. The competition for visibility on Amazon is intense, and advertising costs through Amazon PPC campaigns continue to rise. Generating external traffic gives you greater control over your audience and reduces dependence on paid ads within Amazon.

Invest time in building an external marketing strategy that includes SEO, Google Ads, and social media promotion. Create a brand website where you can direct traffic from blog posts, influencer collaborations, and online advertising. When customers discover your products through external channels, you not only diversify your traffic sources but also improve your Amazon ranking. External visitors who convert into buyers signal to Amazon that your listings are popular and trustworthy, which in turn can boost organic rankings.

You can also take advantage of Amazon’s Brand Referral Bonus programme, which rewards registered brands for driving external traffic to their listings. This approach helps offset some of your advertising costs while expanding your customer reach.

Monitor Profit Margins and Advertising Spend

Even if sales volume is high, profitability can suffer if expenses are not carefully monitored. Track your profit margins for each SKU and regularly compare them to your advertising costs. Amazon PPC can be effective but also expensive if not managed strategically.

Use Amazon’s Advertising Reports to measure your ACoS (Advertising Cost of Sales) and ROAS (Return on Ad Spend). Aim for a sustainable balance—if your advertising costs start to exceed your profit per sale, adjust your campaigns or refine your keywords. Testing new ad placements and analysing data weekly allows you to make quick corrections and avoid unnecessary spending.

Prioritise Customer Experience and Feedback

Amazon’s algorithm rewards sellers who provide excellent customer experiences. Fast delivery, accurate product descriptions, and responsive communication all influence your ranking and Buy Box eligibility. Encourage satisfied customers to leave positive feedback, as strong ratings increase credibility and conversion rates.

Respond promptly to customer questions and complaints, and resolve issues professionally. Poor communication or delayed responses can result in negative feedback, which directly impacts your account health and ranking potential. Over time, maintaining high feedback scores helps you stand out in competitive niches.

Conclusion

Selling on Amazon offers immense opportunity but requires a deep understanding of its cost structure. From subscription and referral fees to fulfilment and advertising charges, every element affects profitability.

By analysing these costs in detail and implementing smart pricing and fulfilment strategies, sellers can build scalable and sustainable businesses within Amazon’s ecosystem. Success comes from balancing competitive pricing, efficient logistics, and consistent optimisation to ensure every sale remains profitable.

We have also written in depth articles on Can you use PayPal on Amazon? and How to Dropship on Amazon as well as our Amazon Hub to give you further guidance.