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Understanding Amazon Seller Fees: A Comprehensive Guide for 2023

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Understanding Amazon Seller Fees: A Comprehensive Guide for 2023

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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:┬а

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 тАЬReferral feesтАЭ notes above.

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

тАФ

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

тАФ

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%

тАФ

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

тАФ

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 тАУ Books, DVD, Music, Software, Video

15%

тАФ

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

тАФ

Tires

10%

$0.30

Tools and Home Improvement

15%

$0.30

Toys and Games

15%

$0.30

Video Game Consoles

8%

тАФ

Video Games and Gaming Accessories

15%

тАФ

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

┬а

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

┬а

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

┬а

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

┬а

Storage Utilization Ratio

Standard-size Items

┬а

Oversize Items

┬а

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)

┬а

Storage Utilization Ratio

Standard-size Items

Oversized Items

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 sellers┬╣, 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.

┬а

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