1. Referral Fees (Category Commission)
Amazon charges a percentage fee on every item sold, which varies by product category. Most major categories (Home, Apparel, Electronics accessories) charge 15% with a $0.30 per-item minimum.
| Category | Standard Referral Rate | Notes / Tiers |
|---|---|---|
| Home & Kitchen | 15.00% | $0.30 minimum per item |
| Clothing & Accessories | 15.00% (8% under $15) | Reduced rate for items under $15 |
| Beauty & Health | 15.00% (8% under $10) | Reduced rate for low-priced items |
| Consumer Electronics | 8.00% | $0.30 minimum per item |
| Toys & Games | 15.00% | $0.30 minimum per item |
2. FBA Fulfillment Fees (Pick, Pack & Weight)
Fulfillment fees cover picking, packing, shipping to customers, customer service, and handling returns. Fees depend on package dimensions (Small Standard, Large Standard, Oversize) and unit shipping weight.
- Small Standard (< 4 oz): ~$3.22 per unit
- Large Standard (12 to 16 oz): ~$3.86 - $4.75 per unit
- Low-Priced FBA (< $10 items): Reduced fulfillment fee rates apply ($0.77 discount).
3. Monthly Storage & Seasonal Peak Fees
Amazon assesses monthly storage fees based on average daily volume (measured in cubic feet) occupied in fulfillment centers:
- Standard-size (Jan – Sep): $0.78 per cubic foot
- Standard-size Peak (Oct – Dec): $2.40 per cubic foot
4. Additional FBA Charges to Model
- Inbound Placement Service Fee: Charged when opting for Amazon to distribute inventory across regional centers.
- Low-Inventory-Level Fee: Applied to standard-size items when historical inventory relative to sales drops below 28 days.
- Aged Inventory Surcharge: Monthly fee for units stored longer than 180 days.
Worked Example: $35 Home Goods Item
Consider a 1 lb Large Standard item sold on Amazon FBA for $35.00 with a $10.00 product cost:
| Component | Calculation | Amount |
|---|---|---|
| Gross Revenue | Item Selling Price | +$35.00 |
| Referral Fee (15%) | $35.00 × 15% | -$5.25 |
| FBA Fulfillment Fee | Large Standard 1 lb | -$4.75 |
| Product Cost (COGS) | Unit Cost | -$10.00 |
| Inbound Freight to FBA | Shipping to Amazon | -$1.50 |
| NET PROFIT | Revenue - All Costs | +$13.50 (38.6% Margin) |