Amazon sells products in over 13 countries, with over 81 fulfillment centers worldwide, selling millions and millions of products from millions of sellers every day.

If you sell online you most likely would benefit from selling through Amazon -but understandinghow much the program costs invariably affects your store fit.Amazon seller fees

How Much Does it Cost to Sell on Amazon?

Amazon Marketplace sellers pay different amounts to sell on Amazon.com depending on the selling program they choose, and what categories the products they sell fall under.

Amazon charges retailers a Referral Fee, Variable Closing Fee which is subtracted from the overall sale (including selling price, shipping and other charges such as gift wrap).

Below are the seller fees for major ways sellers can sell on Amazon.com. 

Amazon Selling Fees

Amazon charges sellers a percentage of each sale they make on the marketplace. It’s free to list products on the Amazon Marketplace but sellers incur fees as a percentage of the overall sales they make, which vary based on their product categories.

Seller Amazon fees vary based on the seller program Marketplace sellers choose. Here are the two seller programs for Amazon:

Amazon Seller Fees Amazon Seller: Individual SellerAmazon Seller: Pro Merchant
Amazon Seller Fees Amazon Seller: Individual SellerAmazon Seller: Pro Merchant
Flat Fee$0.99 for each item sold (on top of %fee)$39.99/ month (no $0.99 fee)
Sale Percentage FeeVaries based on Category Varies based on Category

If you sell more than 40 products a month then the Pro Merchant Program is a no-brainer.

Amazon Referral Fee

Amazon’s Referral Fee- or how much Amazon charges per each sale (%) is determined by its cost per acquisition (CPA) model and inventory category. Here is a breakdown of Amazon’s referral fees by category:

Amazon CategoryReferral Fee %Min Referral Fee
Amazon CategoryReferral Fee %Min Referral Fee
Amazon Kindle, Baby Products (Not Baby Apparel), Beauty, Books, Clothing & Accessories, Health & Personal Care, Home & Garden, Kitchen, Luggage & Travel, Music, Musical Instruments, Office Products, Outdoors, Shoes, Handbags & Sunglasses, Software & Computer/ Video, games, Toys & Games, Videos & DVD, Video Games, Watches, Other 15%$1, NA for Kindle, Books, Videos/ DVDs, Video Games & Software $2 Watches
Automotive & Powersports, Industrial & Scientific, Tools & Home Improvement12% (no for tires & wheels)$1
Camera & Photo, Consumer Electronics, Unlocked Cell Phones, Video game Consoles 8%$1, NA for Video Game OCnsoles
Collectible Coins, Electronic Accessories, Entertainment Collectibles, Major Appliances, Sports Collectivvles * Varies $1
Jewelry 20%$2
Kindle Accessories 25%NA
Personal Computers6%$1

Amazon incurs revenue from an item sold from your store, and charges the Marketplace shopper the price of the item, shipping and other related charges (e.g. gift wrap). The seller receives a portion of this total excluding the referral fee (% of sale), and other fees based on their seller account ($0.99/ per item for Individual sellers and $39/month for Pro Merchants).

Amazon FBA & Sell on Amazon Fees

Third party merchants selling on Amazon can choose to leverage Fulfillment by Amazon. These sellers send their inventory to Amazon, and sell items on the Marketplace. Fulfilled inventory from Amazon is sorted, packaged, and shipped by Amazon.

  • Fulfillment by Amazon (FBA) – Sellers leverage Amazon’s fulfillment for products sold on the Amazon Marketplace
  • Using your own fulfillment (MFN)- Sellers handle fulfillment for their products sold on the Amazon Marketplace

Fulfilled By Amazon (FBA) charges sellers 8-15% per each sale in addition to FBA Fees. Selling on Amazon charges referral fees but only charges storage fees if you’re using FBA.

Fees (As of Feb 18, 2014)Sell on Amazon (FBA)Sell on Amazon
Fees (As of Feb 18, 2014)Sell on Amazon (FBA)Sell on Amazon
CPA Fees8-15% Dependent on product category8-15% Dependent on product category
Order Handing Media- $0 Non Media- $1.00 Clothing- $1.00 (+ Weight handling- based on outbound shipping weight) (Fees vary for oversize products)
Pick & Pack Fees Media- $1.02 Non Media-$1.02 Clothing- $1.42 (+ Weight handling- based on outbound shipping weight) (Fees vary for oversize products)
Monthly Storage Fees Jan- Sept- $0.48 per cubic foot Oct-Dec-$0.64 per cubic foot
Inventory Placement Service FeeStandard Size (less than 1lb-2lb)- $.30-$.40 with +$.10/lb above the first 2 lb. Oversize (5lb+)- $1.30+ with +$.so/lb above the first 5lb

Amazon’s minimum fee is relatively new (May 2014) and affects 21 categories with a $1 minimum fee. For example if if you sold a $5 product (before May) with a 15% fee, Amazon would charge a $0.75 fee. That fee is now $1 (the minimum).

If you’re unsure as to whether you should be selling on Amazon through Amazon.com, or which fulfillment option to choose, check out this resource.

 


Stay tuned for more tutorials on how to Sell on Amazon!

For more information on how to get started selling on Amazon, check out these upcoming posts:

Grab Our Newest White Paper on Driving Product Discoverability on the Amazon Marketplace

Increase Sessions For Your Amazon Marketplace Listings

About the AuthorMary Weinstein is the Director of Content at CPC Strategy, and an expert in Retail Search, Google Shopping and Digital Marketing. A NY native, Mary spends her time educating online merchants, hiking and drinking copious amounts of coffee. You can also find her work on SEW, SEMRush, MOZ and Practical Ecommerce. See all posts by this author here.