Understanding Amazon Seller Fees: A Comprehensive Guide for 2023

Table of Content

Introduction
Introduction
Referral Fees
Referral Fees
Individual Per-Item Fees or Subscription Fees
Individual Per-Item Fees or Subscription Fees
Individual Seller Per-Item Fee
Individual Seller Per-Item Fee
Professional Seller Subscription Fee
Professional Seller Subscription Fee
Refund Administration Fees
Refund Administration Fees
Fees for FBA Sellers
Fees for FBA Sellers

Understanding Amazon Seller Fees: A Comprehensive Guide for 2023

person Prasad Joshi
calendar_today Oct 07, 2023

Introduction:

Selling on Amazon is a lucrative venture for many entrepreneurs and businesses. However, it's essential to understand the various fees associated with being an Amazon seller to manage your costs effectively and optimize your profits. In this comprehensive guide, we will break down the different types of fees that Amazon sellers may encounter in 2023. We'll provide detailed information and pricing tables to help you navigate the Amazon fee structure successfully.

Referral Fees:

Referral fees are the commissions paid to Amazon for each item sold on their platform. These fees are typically a percentage of the item's sale price or a minimum fee, whichever is greater. Here's a list of current referral fees for various product categories:

Categories	Amazon deducts the greater of the applicable referral fee percentage or applicable per-item minimum referral fee. See “Referral fees” notes above.
Categories	Referral fee percentages	Applicable minimum referral fee (applied on a per-unit basis unless otherwise noted)
Amazon Device Accessories	45%	$0.30
Amazon Explore	30% for Experiences	$2.00
Automotive and Powersports	12%	$0.30
Baby Products	8% for products with a total sales price of $10.00 or less, and 15% for products with a total sales price greater than $10.00	$0.30
Backpacks, Handbags, and Luggage	15%	$0.30
Base Equipment Power Tools	12%	$0.30
Beauty, Health and Personal Care	8% for products with a total sales price of $10.00 or less, and 15% for items with a total sales price greater than $10.00	$0.30
Business, Industrial, and Scientific Supplies	12%	$0.30
Clothing and Accessories	17%	$0.30
Collectible Coins	15% for the portion of the total sales price up to $250.00, 10% for any portion of the total sales price greater than $250.00 up to $1,000.00, and 6% for any portion of the total sales price greater than $1,000.00.	$0.30
Compact Appliances	15% for the portion of the total sales price up to $300.00, and 8% for any portion of the total sales price greater than $300.00	$0.30
Computers	8%	$0.30
Consumer Electronics	8%	$0.30
Electronics Accessories	15% for the portion of the total sales price up to $100.00, and 8% for any portion of the total sales price greater than $100.00	$0.30
Entertainment Collectibles	20% for the portion of total sales price up to $100.00, 10% for the portion of total sales price greater than $100.00, up to $1,000.00, and 6% for the portion of total sales price greater than $1,000.00	—
Everything Else	15%	$0.30
Eyewear	15%	$0.30
Fine Art	20% for the portion of the total sales price up to $100.00, 15% for the portion of the total sales price greater than $100.00 up to $1,000.00, 10% for the portion of the total sales price greater than $1,000.00 up to $5,000.00, and 5% for the portion of the total sales price greater than $5,000.00	—
Footwear	15%	$0.30
Full-Size Appliances	8%	$0.30
Furniture	15% for the portion of the total sales price up to $200.00, and 10% for any portion of the total sales price greater than $200.00	$0.30
Gift Cards	20%	—
Grocery and Gourmet	8% for products with a total sales price of $15.00 or less, and 15% for products with a total sales price greater than $15.00	—
Home and Kitchen	15%	$0.30
Jewelry	20% for the portion of the total sales price up to $250.00, and 5% for any portion of the total sales price greater than $250.00	$0.30
Lawn and Garden	15%	$0.30
Lawn Mowers and Snow Throwers	15% for products with a total sales price of up to $500.00 8% for products with a total sales price greater than $500.00	$0.30
Mattresses	15%	$0.30
Media – Books, DVD, Music, Software, Video	15%	—
Musical Instruments and AV Production	15%	$0.30
Office Products	15%	$0.30
Pet Products	15%, except 22% for veterinary diets	$0.30
Sports and Outdoors	15%	$0.30
Sports Collectibles	15% for the portion of the total sales price up to $100.00 10% for any portion of the total sales price greater than $100.00 up to $1,000.00 6% for any portion of the total sales price greater than $1,000.00	—
Tires	10%	$0.30
Tools and Home Improvement	15%	$0.30
Toys and Games	15%	$0.30
Video Game Consoles	8%	—
Video Games and Gaming Accessories	15%	—
Watches	16% for the portion of the total sales price up to $1,500.00, and 3% for any portion of the total sales price greater than $1,500.00	$0.30

Individual Per-Item Fees or Subscription Fees:

Amazon offers two types of seller accounts: individual and professional. Depending on your account type, you'll either pay per-item fees for each sale or a monthly subscription fee.

Individual Seller Per-Item Fee:

Individual sellers pay a flat $0.99 per sales transaction instead of a monthly subscription fee. These fees are deducted after the sale is made.

Professional Seller Subscription Fee:

Professional sellers pay a monthly subscription fee of $39.99. This fee is deducted from your Amazon account balance, and if there are insufficient funds, it's charged to your credit card.

Refund Administration Fees:

If a customer requests a refund for a product, you've already been paid for, Amazon charges a refund administration fee. This fee is either $5.00 or 20% of the refunded amount, whichever is less. It's deducted from your Amazon account balance or charged to your credit card if your balance is insufficient.

Fees for FBA Sellers:

Fulfillment by Amazon (FBA) sellers enjoy the benefit of Amazon handling shipping, handling, and packaging. In return, they pay FBA fees based on the size and weight of their products.

Here are the details for FBA fees:

FBA fulfilment fees for non-apparel items:

Size tier	Max dimension	Shipping weight	Fulfilment fee
Small standard	15" x 12" x 0.75"	4 oz or less	$43.22
Small standard	15" x 12" x 0.75"	4+ to 8 oz	$3.40
Small standard	15" x 12" x 0.75"	8 to 12 oz	$3.58
Small standard	15" x 12" x 0.75"	12 to 16 oz	$53.77
Large standard	18" x 14" x 8"	4 oz or less	$1386
Large standard	18" x 14" x 8"	4+ to 8 oz	$4.08
Large standard	18" x 14" x 8"	8+ to 12 oz	$54.24
Large standard	18" x 14" x 8"	12+ to 16 oz	$54.75
Large standard	18" x 14" x 8"	1+ to 1.5 lb	$5.40
Large standard	18" x 14" x 8"	1.5 to 2 lb	$5.69
Large standard	18" x 14" x 8"	2+ to 2.5 lb	$6.10
Large standard	18" x 14" x 8"	2.5+ to 3 lb	$6.39
Large standard	18" x 14" x 8"	3+ to 20 lb	$7.17+$0.16/half-lb above first 3 lb
Small oversize	60" x 30"	70 lb or less	$9.75 + $0.42/lb above first lb
Medium oversize	108" (longest side)	150 lb or less	$19.05 + $0.42/lb above first lb
Large oversize	108" (longest side)	150 lb or less	$89.98 + $0.85/lb above first 90 lbs
Special oversize	>108" (longest side)	Over 150 lb	$158.49 + $0.83/lb above first 90 lbs

FBA Fulfilment Fees for Apparel

Size tier	Max dimension	Shipping weight	Fulfilment fee
Small standard	15"x12"x0.75"	4 oz or less	$3.43
Small standard	15"x12"x0.75"	4+ to 8 oz	$3.58
Small standard	15"x12"x0.75"	8+ to 12 oz	$3.87
Small standard	15"x12"x0.75"	12 to 16 oz	$4.15
Large standard	10" x 14" x 8"	4 oz or less	$4.45
Large standard	10" x 14" x 8"	4+ to 8 oz	$4.63
Large standard	10" x 14" x 8"	8+ to 12 oz	$4.84
Large standard	10" x 14" x 8"	12+ to 16 oz	$5.32
Large standard	10" x 14" x 8"	1 to 1.5 lb	$6.10
Large standard	10" x 14" x 8"	1.5 to 2 lb	$6.37
Large standard	10" x 14" x 8"	2+ to 2.5 lb	$6.85
Large standard	10" x 14" x 8"	2.5 to 3 lb	$7.05
Large standard	18" x 14" x 8"	3+ to 20 lb	$7.17+$0.16/half-lb above first 3 lb
Small oversize	60" x 30"	70 lb or less	$9.75 + $0.42/lb above first lb
Medium oversize	108" (longest side)	150 tb or less	$19.05 + $0.42/lb above first lb
Large oversize	108" (longest side)	150 or less	$89.98 + $0.83/lb above first 90 lbs
Special oversize	>108" (longest side)	Over 150 lb	$158.49 + $0.83/lb above first 50 lbs

FBA Small & Light Fulfilment Fees

Size tier	Max dimension	Shipping weight	Fulfilment Fee
FBA Small & Light small standard	15 x 12 x 0.75	6 oz or less	$2.47
FBA Small & Light small standard	15 x 12 x 0.75	6 to 12 oz	$2.61
FBA Small & Light small standard	15 x 12 x 0.75	12 to 16 oz	$3.15
FBA Small & Light large standard	18" x 14"x8"	6 oz or less	$2.66
FBA Small & Light large standard	18" x 14"x8"	6 to 12 oz	$2.94
FBA Small & Light large standard	18" x 14"x8"	12 to 16 oz	$3.77
FBA Small & Light large standard	18" x 14"x8"	1 to 2 lb	$4.42
FBA Small & Light large standard	18" x 14"x8"	2 to 3 lb	$5.19

FBA Fulfillment Fee Changes (Excluding Apparel):

Fulfilment Fee Per Unit

Size tier	Shipping weight	Non-peak period (Jan 17, 2023 - Oct 14, 2023)	Peak period (Oct 15, 2023 - Jan 14, 2024)
Small standard	4 oz or less	$3.22	$3.42
Small standard	4+ to 8 oz	$3.40	$3.60
Small standard	8+ to 12 oz	$3.58	$3.78
Small standard	12+ to 16 oz	$3.77	$3.97
Large standard	4 oz or less	$3.86	$4.16
Large standard	4+ to 8 oz	$4.08	$4.38
Large standard	8+ to 12 oz	$4.24	$4.54
Large standard	12+ to 16 oz	$4.75	$5.05
Large standard	1+ to 1.5 lb	$5.40	$5.70
Large standard	1.5+ to 2 lb	$5.69	$5.99
Large standard	2+ to 2.5 lb	$6.10	$6.60
Large standard	2.5+ to 3 lb	$6.39	$6.89
Large standard	3+ lb to 20 lb	$7.17 + $0.16/half-lb above first 3 lb	$7.67 + $0.16/half-lb above first 3 lb
Small oversize	70 lb or less	$9.73 + $0.42/lb above first lb	$10.73 + $0.42/lb above first lb
Medium oversize	150 lb or less	$19.05 + $0.42/lb above first lb	$21.55 + $0.42/lb above first lb
Large oversize	150 lb or less	$89.98 + $0.83/lb above first 90 lb	$92.48 + $0.83/lb above first 90 lb
Special oversize	Over 150 lb	$158.49 + $0.83/lb above first 90 lb	$160.99 + $0.83/lb above first 90 lb

(Note: Clothing and items containing lithium batteries have additional fees - $0.40/unit for clothing and $0.11/unit for items containing lithium batteries.)

2023 Peak Holiday Fulfillment Fees (October 15, 2023, to January 14, 2024): Amazon will apply a Holiday Peak Fulfillment Fee to FBA products priced over $10 during this period. Low-Price FBA Rates apply to items priced under $10.

FBA Storage Fees: Amazon charges monthly storage fees for inventory stored in their fulfillment centers. Starting April 1, 2023, a storage utilization surcharge will be introduced based on the storage utilization ratio.

Month	Standard size	Oversize
January-September	$0.87 per cubic foot	$0.56 per cubic foot
October-December	$2.40 per cubic foot	$1.40 per cubic foot

Off-Peak Period Storage Fees (Starting April 1, 2023)

Standard-size Items

Storage Utilization Ratio	Standard-size Items			Oversize Items
Storage Utilization Ratio	Base Monthly Storage Fee	Storage Utilization Surcharge	Total Monthly Storage Fee	Base Monthly Storage Fee	Storage Utilization Surcharge	Total Monthly Storage Fee
Below 26 weeks	$0.87 per cubic foot	N/A	$0.87 per cubic foot	$0.56 per cubic foot	N/A	$0.56 per cubic foot
26-39 weeks	$0.87 per cubic foot	$0.69 per cubic foot	$1.56 per cubic foot	$0.56 per cubic foot	$0.46 per cubic foot	$1.02 per cubic foot
39+ weeks	$0.87 per cubic foot	$0.94 per cubic foot	$1.81 per cubic foot	$0.56 per cubic foot	$0.63 per cubic foot	$1.19 per cubic foot
N/A (New sellers, Individual accounts, < 25 cubic feet daily volume)	$0.87 per cubic foot	N/A	$0.87 per cubic foot	$0.56 per cubic foot	N/A	$0.56 per cubic foot

Storage Fee Structure (Peak Period: October-December)

Storage Utilization Ratio	Standard-size Items			Oversized Items
Storage Utilization Ratio	Base Monthly Storage Fee	Storage Utilization Surcharge	Total Monthly Storage Fee	Base Monthly Storage Fee	Storage Utilization Surcharge	Total Monthly Storage Fee
Below 26 weeks	$2.40 per cubic foot	N/A	$2.40 per cubic foot	$1.40 per cubic foot	N/A	$1.40 per cubic foot
26-39 weeks	$2.40 per cubic foot	$0.69 per cubic foot	$3.09 per cubic foot	$1.40 per cubic foot	$0.46 per cubic foot	$1.86 per cubic foot
39+ weeks	$2.40 per cubic foot	$0.94 per cubic foot	$3.34 per cubic foot	$1.40 per cubic foot	$0.63 per cubic foot	$2.03 per cubic foot
New sellers¹, sellers with Individual selling accounts, and sellers with less than 25 cubic feet daily volume	$2.40 per cubic foot	N/A	$2.40 per cubic foot	$1.40 per cubic foot	N/A	$1.40 per cubic foot

FBA Aged Inventory Surcharge (Previously Long-Term Storage Fees): Starting April 15, 2023, Amazon will increase the granularity and magnitude for aged inventory surcharges. The surcharge will apply to inventory stored between 181 to 365 days, with additional tiers for inventory aged 181 to 270 days.

Prior to April 15, 2023

Inventory Assessment Date	181-210 days	211-240 days	241-270 days	271-300 days	301-330 days	331-365 days	365+ days
Monthly (every 15th)	N/A	N/A	N/A	$1.50 per cubic foot	$1.50 per cubic foot	$1.50 per cubic foot	$6.90 per cubic foot or $0.15 per unit, whichever is greater

April 15, 2023 and After

Inventory Assessment Date	181-210 days	211-240 days	241-270 days	271-300 days	301-330 days	331-365 days	365+ days
Monthly (every 15th)	$0.50 per cubic foot (excluding certain items) *	$1.00 per cubic foot (excluding certain items) *	$1.50 per cubic foot (excluding certain items) *	$3.80 per cubic foot	$4.00 per cubic foot	$4.20 per cubic foot	$6.90 per cubic foot or $0.15 per unit, whichever is greater

Fees for FBM Sellers: Fulfillment by Merchant (FBM) sellers do not have separate fees like FBA sellers but have higher costs as they handle shipping, packing, and customer service. The total fulfillment cost for FBM sellers includes shipping and packaging expenses.

Miscellaneous Service Fees: Some fees are applicable to specific sellers regardless of whether they are FBA or FBM sellers:

Closing Fees: Media product sellers (books, DVDs, CDs, Blu-Ray) are charged a flat $1.80 fee per sale.

High-Volume Listing Fee: Sellers with thousands of ASINs may pay a monthly flat fee of $0.005 per eligible ASIN if they have more than 100,000 products listed.

Rental Book Service Fees: Sellers renting textbooks on Amazon must pay a $5.00 rental book service fee for each textbook rental they sell.

Conclusion: As an Amazon seller, understanding and managing these fees is crucial to maintaining profitability. It's essential to factor these fees into your pricing strategy and overall business plan. Utilizing tools like Jungle Scout to estimate fees during product research can help you make informed decisions about your Amazon business. Keep track of fee changes and updates to stay competitive in the ever-evolving world of e-commerce on Amazon.