How Much Does It Really Cost to Sell on Amazon? (Fees Brand Owners Forget)
Selling on Amazon has more than one cost. You pay a monthly plan fee, a referral fee on each sale, and fulfillment fees if you use FBA. Then add storage, ads, returns, and your own product cost. Fees change often and depend on your product, so check Amazon's fee pages and use a fee calculator before you set a price.
The short version
Many new sellers look at the price on the page and think the rest is profit. It is not. After Amazon fees, your own costs, and ads, the money left can be small. Here are the main costs.
The main fees
1. Your selling plan
Amazon has a Professional plan for most brands. It has a monthly fee whether you sell or not. At the time of writing it is US$39.99 a month in the US, and CA$29.99 a month for a Canada-only account. Check the current page for your country.
2. Referral fee
Amazon takes a percent of each sale. The percent depends on the category. For most categories it is between about 8 percent and 15 percent. A few categories are higher. Check the fee schedule for your product type.
3. Fulfillment fee (if you use FBA)
FBA means Fulfilled by Amazon. You send products to an Amazon warehouse. Amazon stores, packs, and ships them. You pay a fee for each unit. The fee depends on the size and weight of your product.
4. Storage fees
Amazon charges to keep your products in the warehouse. The fee is based on the space your stock uses. It often goes up in the busy months near the end of the year. Stock that sits for a long time can cost extra.
5. Advertising
Many brands pay for Amazon ads to get visitors, especially at the start. This can be a large cost. It is not a fee Amazon forces on you, but most brands need some ads.
6. Returns and damage
Some returns cannot be sold again. In some categories, Amazon also charges fees for returns. Plan for a small loss on this.
7. Costs outside Amazon
- Your product cost
- Shipping to Amazon
- Packaging and labels
- Photos and listing work
- Taxes, and customs if you ship across a border
- Your own time
A simple example
This example is made up and uses round numbers. Real fees will be different.
| Item | Amount |
|---|---|
| Selling price | $30.00 |
| Product cost | $8.00 |
| Referral fee (15 percent) | $4.50 |
| FBA fee | $5.50 |
| Storage and returns (estimate) | $1.00 |
| Ads (estimate) | $3.00 |
| Left over | $8.00 |
In this example, $8 is left out of a $30 sale. That is about 27 percent before you pay for your time, photos, and taxes. If Amazon raises a fee, or you lower the price to win the Buy Box, it shrinks fast.
How to check your own numbers
- Use Amazon's revenue calculator. It estimates fees for a product.
- Add your own costs, shipping, and ad spend.
- Test a few prices. See what is left at each price.
- Check again each year. Fees change.
If you lose the main button on your page, you may have to drop the price. Read why you may lose the Buy Box to plan for it.
How to protect your profit
- Do not guess. Use the calculator for every product.
- Start with a small amount of stock.
- Watch your storage. Do not hold stock that does not sell.
- Set an ad budget and look at it each week.
- Know your lowest price. Do not go below it.
Where the other options fit
If you sell on your own, you pay all these fees yourself. If you sell to a reseller or partner, they pay Amazon's fees and you sell at a wholesale price. That can lower your risk, but you earn less per unit and you give up some control. AceeNova is a Calgary-based Amazon partner. We buy brand products, improve listings, and pay for ads, with no fee to the brand. That does not fit every brand. See Sell on Amazon Yourself, Hire an Agency, or Sell to a Reseller?
Quick checklist
- Plan fee per month
- Referral fee per sale
- FBA fee, if you use it
- Storage and aged stock
- Ads
- Returns
- Product, shipping, taxes, and your time
If you want to talk through your own numbers, we are happy to help. Book a free call
FAQ
How much does it cost to sell on Amazon?
There is a monthly plan fee, a referral fee on each sale, and extra fees if you use FBA, such as fulfillment and storage. You also pay for ads, returns, and your own product cost. Check Amazon's current fee pages for exact numbers.
What is a referral fee?
It is a percent of the product price that Amazon keeps when you sell. The percent depends on the product category. For many categories it is up to about 15 percent.
Is FBA worth the cost?
It depends. FBA can save you time and help your offer get Prime shipping. But it adds fees. Run the numbers for your own product.
What fees do new sellers forget?
Storage fees, returns, ad spend, and price drops to win sales. These can take a big part of your margin.
How can I check my profit before I sell?
Use Amazon's revenue calculator. Add your product cost, shipping to Amazon, and ad spend to see what is left.
