How to Much Does Amazon Charge to Sell?

Understanding the costs involved in selling on Amazon is crucial for building a sustainable and profitable business. Whether you are launching a new e-commerce venture or expanding an existing retail operation, Amazon offers access to millions of customers across the UK and beyond. However, that access comes with a complex set of fees that vary depending on what you sell, how you fulfil orders and which selling plan you choose. This article provides a detailed look at how much Amazon charges to sell, breaking down the fee structure and helping you calculate your actual costs so you can price your products confidently and protect your margins.

The Basics: Individual vs Professional Selling Plans

Amazon offers two main types of selling accounts: the Individual plan and the Professional plan. The Individual plan is designed for casual sellers who expect to sell fewer than thirty items per month. There is no monthly subscription fee, but a flat per-item fee is applied every time you make a sale. As of now, this fee is seventy-five pence per unit sold in the UK.

The Professional plan is aimed at higher-volume sellers. It costs £25 per month excluding VAT but does not charge the per-item fee. Instead, sellers pay category-specific referral fees, which are applied to every sale regardless of volume. The Professional plan also provides access to bulk listing tools, advertising features, reports and the ability to apply for Amazon’s Brand Registry.

Choosing the right plan depends on your sales volume and business model. For those aiming to grow a brand and scale operations, the Professional plan is usually the more cost-effective option over time.

Referral Fees: The Percentage Amazon Takes Per Sale

Every item sold on Amazon is subject to a referral fee. This is Amazon’s cut for providing the marketplace, exposure and platform tools. The referral fee is a percentage of the total price paid by the customer, including shipping and any gift wrapping, but excluding VAT.

The percentage varies depending on the category of the item. For most categories such as Home and Kitchen, Toys, Sports or Beauty, the referral fee is fifteen percent. For others, such as Consumer Electronics, the fee might be eight percent. Some categories apply a two-tiered system. For example, the Clothing category charges fifteen percent on the portion of the price up to forty pounds and seven percent on the portion above that.

Understanding these rates is vital when calculating your selling price. If you do not account for the referral fee, you may find your profit margins significantly reduced after fees are deducted from each sale.

Fulfilment Fees: FBA vs FBM Costs

Sellers can choose to fulfil orders themselves or use Amazon’s Fulfilment by Amazon service, known as FBA. If you use FBA, Amazon stores your inventory, packs and ships the orders and handles customer service and returns. While convenient, it comes with an additional fee structure.

FBA fees are calculated based on the size and weight of each unit. The fees include picking, packing and shipping and are charged per item sold. For a standard-size item weighing under two hundred grams, the fulfilment fee might be around £1.71. Larger or heavier items will cost more to store and ship, especially if they require special handling.

In addition to fulfilment fees, FBA sellers also pay monthly storage fees. These are based on the volume of space your inventory occupies in Amazon’s warehouse, measured in cubic feet. Storage fees increase during the fourth quarter due to peak demand and are also higher for inventory that remains unsold for more than a year.

Fulfilment by Merchant, or FBM, involves the seller handling all storage, packaging and delivery. While this avoids FBA fees, sellers must still meet Amazon’s performance standards and may face higher return rates if customer service is not up to scratch. FBM is typically more cost-effective for low-volume or custom orders, whereas FBA suits high-volume, fast-moving products.

Other Potential Fees to Consider

Beyond the basic referral and fulfilment fees, Amazon charges a range of optional or situational fees that can catch new sellers off guard. For example, if you choose to run advertising campaigns on Amazon, you will pay per click through their Sponsored Products or Sponsored Brands system. These costs vary based on bidding competition and can range from a few pence to several pounds per click.

There are also costs related to product prep, labelling, returns processing and long-term storage. Sellers using FBA who do not comply with packaging or labelling requirements may incur preparation fees. If your product is returned by the customer and Amazon handles it, you may be charged a return processing fee, depending on the category.

For international selling through Amazon’s European marketplaces, sellers should also factor in cross-border VAT, compliance costs and currency conversion fees. These can eat into profits if not planned for in advance.

Calculating Total Cost and Setting Prices

To price your product correctly, you must calculate the total cost per unit sold. This includes the product’s manufacturing or sourcing cost, referral fee, fulfilment fee if using FBA, storage costs, VAT and any additional expenses such as advertising or returns. Amazon provides a Revenue Calculator tool that helps sellers estimate total fees and profit margins based on real-time data.

It is also important to consider seasonal fluctuations. Storage fees rise in peak retail periods and customer returns often increase after major holidays. You should factor these patterns into your pricing and stock planning strategies.

Maintaining healthy margins on Amazon requires discipline and regular review. A small change in fulfilment fee structure or a new competitor in your niche could shift the economics of your listing. Keep your pricing and cost tracking under regular review to avoid surprise losses.

Avoiding Common Pitfalls in Fee Management

One common mistake new sellers make is underestimating the impact of Amazon’s fees on small-ticket items. Products priced under ten pounds often struggle to generate meaningful profits once all fees are deducted. This is especially true if you are also running ads or using FBA.

Another risk is poor inventory planning. Failing to move stock quickly can lead to high storage fees and penalties for long-term inventory. Over-ordering or choosing bulky products without strong sales data can result in unnecessary costs that drain cash flow.

To avoid these issues, you should conduct regular margin analysis, use historical sales data to forecast demand and choose products that balance size, weight, price and customer appeal. Streamlining packaging and working with reliable suppliers can also reduce the overall cost burden.

Looking Ahead: Will Amazon’s Fees Increase?

Amazon regularly reviews its fee structure and announces changes to referral fees, fulfilment rates and storage costs. These updates typically take place once or twice a year. UK sellers should monitor Amazon Seller News and the fee updates section in Seller Central to stay ahead of any changes.

As Amazon continues to expand its delivery infrastructure and invest in Prime services, fee increases are likely over time. Sellers may also see more dynamic fee structures, where fulfilment rates fluctuate based on inventory age, item category or geographic demand. Building flexibility into your pricing model is essential to protect your margins in the face of future changes.

Conclusion

Selling on Amazon offers reach and convenience, but it is not free. From referral fees to fulfilment and storage charges, the platform takes a cut at every stage. Knowing exactly how much Amazon charges to sell helps you plan your business with confidence, set profitable prices and choose products that are financially viable. For UK sellers who understand the full fee structure and manage their costs carefully, Amazon remains one of the most powerful and scalable tools in the e-commerce space.