How Much Does It Cost to Sell on Amazon: Complete Guide to FBA Fees and Selling Plans

By Thomas Bennett Financial expert at Priceva

Published on October 28, 2025

Selling on Amazon isn’t free—and it’s not simple either. Amazon seller fees are layered, category-specific, and fulfillment-dependent. From $0.99 per item to 45% commission plus storage, the costs add up fast. That’s why understanding how much it costs to sell on Amazon is key to surviving and scaling. This guide breaks down every Amazon fee, from FBA charges to high-volume listing fees, so you know exactly what you’re paying—and how to pay less.

Table of Contents
How Much Does It Cost to Sell on Amazon: Complete Guide to FBA Fees and Selling Plans
Key Takeaways About Amazon Seller Fees
Understanding Amazon Selling Plans: Individual vs. Professional
Breaking Down Amazon Referral Fees by Category
Variable Closing Fees and Media Categories
Fulfillment Options and Their Cost Implications
FBA Small and Light Program
Additional Amazon Fees That Can Impact Your Bottom Line
Leveraging Priceva for Competitive Amazon Fee Intelligence
My Proven Strategies to Reduce Amazon Selling Costs
Calculating Your True Profit After Amazon Fees
How Much Initial Investment Do You Need?
Common Fee Calculation Mistakes
FAQ

Key Takeaways About Amazon Seller Fees

Amazon charges more than just one flat fee. Their fee system includes referral fees, fulfillment costs, monthly plans, long-term storage charges, and category-based variations. Referral fees range from 8% to 45% depending on product type. Individual sellers pay $0.99 per item, while Professional plans cost $39.99/month. FBA fees go from $2.92 for small standard items to $137+ for oversize. Storage isn’t free either—$0.75/cubic foot during most of the year, and $2.40 during Q4. Long-term storage adds $6.90/cubic foot. Choosing the wrong category can destroy your margin. Electronics sit at 8%. Jewelry? That’s 20%. Category strategy, smart bundling, and tight inventory control can boost profits 8-15%.

Understanding Amazon Selling Plans: Individual vs. Professional

Amazon offers two selling plans. Individual sellers don’t pay a monthly fee but are charged $0.99 per item sold. This is great for testing the waters or selling under 40 items/month. The Professional plan costs $39.99/month but removes the per-item fee. It also unlocks bulk listing tools, detailed reports, coupons, and promotional tools.

When the Individual Selling Plan Makes Financial Sense

The Individual plan works well if you're selling under 40 items monthly. For example, 30 items = $29.70, which beats $39.99. It’s ideal for testing products, running a seasonal side hustle, or selling extra inventory. You’ll miss out on advanced features, but for low volume, it’s the smart entry point.

Maximizing Value with the Professional Selling Plan

Selling 40+ items per month? Go Professional. The $39.99 pays for itself. You get bulk listing (saves hours), analytics for inventory control, Lightning Deals, and access to the Buy Box. Even sellers at 30-35 units may benefit, especially if growth is the goal. Use the Professional plan to scale efficiently.

Breaking Down Amazon Referral Fees by Category

Referral fees are Amazon’s commission. These vary by category and drastically impact margins. Here's how it breaks down:

Electronics: 8% (lowest standard rate)
Automotive: 12%
Home & Kitchen: 15%
Apparel: 17%
Jewelry: 20%
Amazon Device Accessories: 45%

For a $100 item, that’s $8 in Electronics versus $20 in Jewelry. Choosing the wrong category can sink a product. Always confirm how Amazon classifies your listing. Charging cables can fall under Electronics (8%) or Cell Phone Accessories (15%) depending on how you label them. Mislabeling leads to recategorization, retroactive fees, or worse—account flags.

High-Margin Categories Worth Considering

Want better profit margins? Stick to lower-fee categories:

Electronics (8%) – Competitive, but 35–40% margins are possible.
Automotive (12%) – Stable demand and high loyalty.
Industrial & Scientific (12%) – Low competition, niche buyers.
Musical Instruments (12–15%) – Passion-driven purchases support higher prices.

These categories average 8–12% higher margins than higher-fee categories.

Strategies to Offset Referral Fee Costs

Apply the 30-40-30 rule: 30% cost of goods, 40% for Amazon fees, 30% profit. For a $10 product, sell at $33. That leaves $13.20 for Amazon, $9.90 profit. Bundle items to change category or lower per-unit fees. A $35 phone accessory kit categorized as Electronics saves $2.45 per sale. At 500 sales/month? That’s $1,225 saved—or $14,700 a year.

Variable Closing Fees and Media Categories

Media items (Books, DVDs, Music, Games) carry an extra $1.80 fee per item, plus standard referral fees:

Books/DVDs: $1.80 + 15%
Games: $1.80 + 15%
Game Consoles: $1.80 + 8%

For a $10 book: $1.80 + $1.50 = $3.30 in fees (33%) before shipping. Profitable mainly on high-ticket items. Example: $50 textbooks or $60 new game releases. Be careful post-holidays—return rates spike to 18% in January.

Fulfillment Options and Their Cost Implications

Amazon offers three fulfillment methods: FBA, FBM, and SFP. Each impacts profitability differently.

Fulfillment by Amazon (FBA) Fee Structure

FBA size tiers dictate costs:

Small Standard: $2.92–$3.18
Large Standard: $3.86–$5.83
Small Oversize: $9.26–$10.36
Medium Oversize: $19.05–$24.03
Large Oversize: $90.16+
Special Oversize: $137.32+

Storage: $0.75/ft³ Jan–Sept; $2.40/ft³ Oct–Dec.

Long-term: $6.90/ft³ after 271 days. Add $5–10 for returns. FBA means Prime badge, faster shipping, and less customer service.

Self-Fulfillment Costs to Consider (FBM)

FBM skips FBA fees but adds your own:

Labor: 28 min/order = $9.33 at $20/hr
Packaging: $0.50–2.50
Shipping: $3.50–15
Storage: $0.50–2.00/order

FBM costs $12–18 per order. Best for large/low-volume items or if you already have a warehouse. Negotiated rates help but can’t eliminate labor or shipping costs.

Is Seller Fulfilled Prime Worth the Extra Requirements?

SFP gives you the Prime badge without using FBA. But you must:

Ship same/next day
Hit 99% on-time rate
Offer weekend fulfillment

Costs rise fast: Expedited shipping adds $3–5/order. Staffing weekends costs $200–400/month. Works only if you already have the logistics dialed in, your products are light, and your margins are 40%+.

FBA Small and Light Program

FBA Small and Light reduces fees on items under $10 and 1 lb:

Fees: $2.47–$3.01 (vs. $3.22–$3.86)
Saves $0.75–$0.85 per unit (22%+)

Example: $8.99 phone case saves $0.75 = 26% margin. At 500 sales/month, that’s $375/month or $4,500/year saved. Limits: must restock often, pricing cap of $10, and seasonal availability fluctuates.

Additional Amazon Fees That Can Impact Your Bottom Line

Amazon charges more than what most sellers expect. These hidden fees matter.

Inventory Storage and Long-Term Storage Fees

After 271 days, expect $6.90/ft³ in long-term storage fees. Example: 10 cubic feet = $69. Unprofitable. Avoid it by reviewing inventory every 90 days:

<1 sale/month: remove
1–2 sales/month: discount 20%
3+ sales/month: keep

Ship inventory late September (at $0.75 rate) instead of October ($2.40), saving 40% in Q4.

Returns Processing and Refund Administration

Returns cost sellers real money. Amazon charges:

Refund Admin: 20% of referral or $5 minimum
Return Processing: $5–10

Example: $50 sale = $15 fees, $35 COGS. Add $10 return loss = $25 total loss. Some categories hurt more: Apparel (15–20% returns), Electronics (8–12%). Price higher by 8–12% to offset.

High-Volume Listing Fees

Got 100,000+ ASINs (non-media)? You’ll pay $0.005 per ASIN/month. Review listings every 90 days. Delete zero-sales products. Optimize catalog.

Special Category and Handling Fees

Some products need extra handling. Examples:

Hazmat: $0.11–0.91/unit
Lithium batteries: surcharge
Apparel: 17% referral vs. standard 15%

Build these into prices. Otherwise, you're losing money with every sale.

Leveraging Priceva for Competitive Amazon Fee Intelligence

Want to win the pricing war without losing profits? Use Priceva. It’s not just a price tracker—it compares your costs, fees, and competitor prices. It tells you when you’re overpaying on FBA, how others manage fee absorption, and when it's time to change categories or bundling strategies. Pricing smart isn’t just about being cheaper—it’s about surviving the Amazon fee jungle.

My Proven Strategies to Reduce Amazon Selling Costs

Smart sellers don’t just pay fees—they work the system legally and smartly. Reducing costs on Amazon is about more than squeezing suppliers. It’s about knowing how Amazon calculates its fees and how to optimize every inch, every SKU, and every bundle.

Product Packaging and Dimension Optimization

Amazon’s FBA fees are highly sensitive to item size and weight. Just one extra inch can move your product into a higher size tier, multiplying fulfillment costs.

Take this example: a product measuring 19"x15"x9" falls into the Large Oversize tier with an FBA fee of $19.05. Redesigning the packaging to fit within 17"x13"x7.5" reclassifies it as Large Standard, with a fee of just $5.83. That’s a savings of $13.22 per unit. At 200 units per month, that equals $2,644 in monthly savings or $31,728 annually.

To reduce Amazon FBA fees, measure every product’s final packaged dimensions. Consider collapsible packaging or tighter inserts to reduce volume. Even a one-inch change can flip your size tier and transform your margins.

Strategic Inventory Management to Avoid Storage Fees

Storage costs eat into profits, especially in Q4 or with slow-moving products. Use a 90-day rule to evaluate inventory performance:

Zero sales in 90 days: Remove from FBA storage
1–2 units/month: Apply 20% discount or prepare for liquidation
3–9 units/month: Monitor closely, adjust listing or advertising
10+ units/month: Keep in stock, restock as needed

Plan your Q4 inventory strategically. Send in higher volumes by late September, when storage fees are still at the $0.75/cubic foot rate.

Reduce your inventory aggressively starting January 1 to avoid paying the $2.40/cubic foot Q4 rate in Q1. This timing optimization alone can reduce annual storage costs by 30–40%.

Strategic Product Bundling and Multi-Packs

Bundling complementary products helps reduce per-unit Amazon seller fees and boosts average order value. For example:

Single item: Sell for $8, referral fee (17%) = $1.36, FBA = $2.92 → Profit = $3.72 (46.5% margin)
Three-pack: Sell for $18, referral = $3.06, FBA = $3.19 → Profit = $11.75 (65.3% margin)

Bundling improves perceived value, reduces competition, and cuts down on Amazon referral fees by spreading them across multiple items. Use Amazon’s “Frequently Bought Together” section to find bundling opportunities that make sense for customers.

Calculating Your True Profit After Amazon Fees

Guesswork kills businesses. Use real numbers to calculate your actual profits after Amazon fees.

Using Amazon's Fee Calculator and Its Limitations

The Amazon Fee Calculator can help estimate referral and FBA fees, but it misses:

Return costs
Long-term storage fees
Advertising spend
Packaging material costs
Refund administration and return processing fees

Always add a 15–20% buffer to cover these missing variables. Access the calculator in Seller Central under Revenue > Fee Calculator. Input exact product dimensions and weights—round up for safety. Choose fulfillment method, input your price, and review all breakdowns. Then adjust using your real-world experience.

Complete Profit Calculation Formula

Use this full formula to get a realistic look at your bottom line:

Net Profit = Sale Price - Referral Fee - FBA Fee - Storage Fee - COGS - Inbound Shipping - Return Allocation (8–12%) - Miscellaneous Costs

Example for a $100 product:

$100 (Sale Price)
$15 (15% referral fee)
$5.83 (FBA fee)
$0.75 (monthly storage estimate)
$35 (COGS)
$2.50 (inbound shipping)
$10 (return buffer)
$1.50 (miscellaneous costs)

= $29.42 Net Profit (29.4% margin)
Track this data for every SKU in a spreadsheet. It’s tedious, but it’s how real businesses survive Amazon's complex fee structure.

How Much Initial Investment Do You Need?

Starting out on Amazon requires capital. Here’s a realistic breakdown:

Test phase: $1,500–$3,000 for 2–3 products, sample inventory, FBA prep, and some marketing
Low-budget model: Start with $300 by flipping used books or retail arbitrage
Full-scale private label: $10,000+ for branding, bulk inventory, product design, photography, and PPC advertising

Don’t forget hidden costs: UPCs, logo design, tools (like Helium 10), and a buffer for return losses or shipping damage.

Common Fee Calculation Mistakes

Avoid these costly errors:

Assuming a flat 15% referral fee: Some categories charge 8%, others up to 45%. Always check the exact rate.
Ignoring dimensional weight: Amazon charges based on the greater of actual weight or dimensional weight (LxWxH/139). That lightweight but large item may cost more than you think.
Forgetting about aged inventory fees: $6.90 per cubic foot adds up fast. Set automatic removal triggers at 9 months.
Underestimating return costs: Returns cost $12–$27 per item on average, depending on category and fulfillment method.
Wrong category placement: Misclassifying a product can result in higher fees and retroactive penalties.
Not preparing for Q4 storage spike: Storage rates jump from $0.75 to $2.40 per cubic foot in October. Plan ahead by adjusting send-in timing and sell-through strategy.