How Much Does It Cost to Sell on Amazon?

Selling on Amazon offers a massive opportunity to reach millions of potential customers. But before you can start turning a profit, it's essential to understand the costs involved. From referral fees to fulfillment charges, the Amazon pricing structure can seem complex. A clear understanding of these expenses is the first step toward building a profitable e-commerce business.  

This guide provides a transparent breakdown of all the potential Amazon seller fees. We'll explore everything you need to know about the cost to sell on Amazon, including account fees, referral fees, fulfillment costs, and other charges that might not be immediately obvious. By the end, you'll have the knowledge to calculate your potential expenses and set a pricing strategy that works for your business.  

Amazon Selling Plan Fees  

Your first decision as an Amazon seller is choosing a selling plan. Amazon offers two options, each with a different fee structure designed for different sales volumes.  

Individual Plan  

The Individual plan is best for those just starting or who plan to sell fewer than 40 items per month.  

• Cost: $0.99 per item sold.  

• Best for: Sellers who are testing the waters, selling unique items, or have low sales volume.  

With this plan, you don't pay a monthly subscription fee. Instead, Amazon takes $0.99 every time you sell a product. This pay-as-you-go model is a low-risk way to begin your selling journey.  

Professional Plan  

The Professional plan is designed for serious sellers who expect to sell more than 40 items per month.  

• Cost: $39.99 per month.  

• Best for: Established businesses, high-volume sellers, and brands looking to grow.  

This plan charges a flat monthly fee regardless of how many items you sell, which is more cost-effective for higher volumes. It also unlocks access to advanced selling tools, including advertising, detailed reporting, and the ability to sell in restricted categories. If you're serious about building a business on Amazon, the Professional plan is the standard choice.  

Amazon Referral Fees  

For every item sold on its platform, Amazon charges a referral fee. Think of this as a commission for connecting you with a customer. This fee is a percentage of the total sales price, which includes the item price, shipping costs, and any gift-wrapping charges.  

The percentage varies significantly depending on the product category. For example, consumer electronics might have a referral fee of 8%, while Amazon Device Accessories can be as high as 45%. Most categories fall within the 8% to 15% range.  

Here’s a quick look at some common Amazon referral fees:  

• Books: 15%  

• Home & Kitchen: 15%  

• Clothing & Accessories: 17%  

• Electronics: 8%  

• Health & Personal Care: 15% for items $10 or less, 8% for items over $10.  

It's crucial to check the specific referral fee for your product category before setting your prices. These fees are a significant part of your overall Amazon selling costs, and failing to account for them can quickly eat into your profit margins.  

Fulfillment Fees: FBA vs. FBM Costs  

After a customer buys your product, you need to get it to them. Amazon offers two primary fulfillment methods: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). Your choice here will have a major impact on your costs and workload.  

Fulfillment by Amazon (FBA)  

With FBA, you send your inventory to Amazon's fulfillment centers. When an order comes in, Amazon picks, packs, and ships the product for you. They also handle customer service and returns. This convenience comes at a price, known as Amazon FBA fees.  

Key FBA costs include:  

• FBA Fulfillment Fee: This is a per-unit fee that covers the cost of picking, packing, and shipping. It’s based on the product's size and weight.  

• Monthly Inventory Storage Fees: You pay for the space your products occupy in Amazon's warehouses. This cost is calculated per cubic foot and is higher during the peak holiday season (October-December).  

• Long-Term Storage Fees: If your inventory sits in a fulfillment center for more than 365 days, Amazon will charge an additional long-term storage fee.  

The FBA cost analysis can seem daunting, but many sellers find the benefits—like Prime eligibility and hands-off logistics—outweigh the expenses.  

Fulfillment by Merchant (FBM)  

With FBM, you are responsible for storing your inventory and shipping orders directly to customers. You also manage customer service and returns yourself.  

The primary cost of FBM is your own shipping expense. This can vary based on the carrier you use, package weight and dimensions, and the customer's location. While FBM can be cheaper if you have an efficient shipping operation or sell large, heavy items, it requires more time and effort. Comparing FBA vs. FBM costs is essential to determine the right strategy for your business.  

Other Common Amazon Seller Fees  

Beyond the main fees, there are other potential costs to be aware of when selling on Amazon. These are often considered the "hidden fees on Amazon" because they aren't always obvious at first.  

Inventory and Storage Fees  

For FBA sellers, managing inventory effectively is key to controlling costs. In addition to standard monthly storage, be mindful of:  

• Inventory Placement Service Fees: If you want all your inventory sent to a single fulfillment center, Amazon charges a per-item fee.  

• Inventory Removal Fees: If you need to have unsold inventory returned to you or disposed of, there's a fee for that.  
  

Miscellaneous Selling Fees  

Depending on your business, you might encounter these additional charges:  

• High-Volume Listing Fee: If you have a large number of active, non-media listings that haven't sold in 12 months, you may be charged a monthly flat fee.  

• Rental Book Service Fees: For sellers renting out textbooks, Amazon charges a $5.00 fee for each rental.  

• Refund Administration Fee: If you issue a refund to a customer for an order you've already been paid for, Amazon will refund you the referral fee minus an administration fee, which is the lesser of $5.00 or 20% of the referral fee.  
  

How to Calculate Your Costs  

With so many variables, how can you accurately estimate how much Amazon will take? The best tool is an Amazon seller calculator. Amazon provides its own free calculator, and there are many third-party options available.  

These tools allow you to input your product's cost, selling price, and fulfillment method to get a detailed Amazon fee breakdown. This makes it easier to visualize your net profit per sale and adjust your pricing strategy accordingly. Using a calculator is a critical step in understanding the true cost of doing business on Amazon.  

Your Path to Profitable Selling  

Understanding your Amazon selling costs is the foundation of a successful e-commerce venture. While the list of fees can seem long, each one serves a purpose within the Amazon ecosystem. By choosing the right selling plan, accounting for referral fees, and selecting the most cost-effective fulfillment method, you can build a profitable and scalable business.  

Take the time to do a thorough FBA cost analysis, use an Amazon seller calculator to model your profits, and never stop monitoring your expenses. With a clear view of your financial landscape, you’ll be well-equipped to navigate the marketplace and achieve your goals.