Amazon Fee Analysis: Understanding All the Costs of Selling on Amazon

The referral fee is Amazon's commission on every sale. It's calculated as a percentage of the total selling price (including shipping, if charged).

Common referral fee rates:

• Electronics: 8%
• Home & Kitchen: 15%
• Clothing: 17%
• Health & Personal Care: 15%
• Toys & Games: 15%
• Books: 15%
• Jewellery: 20%

For most categories, there's a minimum referral fee of £0.25. Referral fees are automatically deducted from your disbursement — you don't pay them separately.

FBA fulfilment fees cover picking, packing, and shipping your orders from Amazon's fulfilment centres. They are calculated based on the product's size tier and weight.

UK FBA fee examples (2026 rates, approximate):

• Small envelope (≤250g): £2.50
• Small parcel (≤500g): £3.00
• Standard parcel (≤1kg): £3.80
• Medium parcel (≤3kg): £4.50
• Large parcel (≤5kg): £6.00

For products over 5kg or with large dimensions, fees can be £10–£30+. Use Amazon's Revenue Calculator in Seller Central to get exact fees for your ASINs, or view them in Amazon → Fees → Fulfilment in AskBiz.

Amazon charges monthly storage fees based on the volume your inventory occupies in their fulfilment centres.

Standard storage rates (UK, 2026 approximate):

• Jan–Sep: £0.51 per cubic foot/month
• Oct–Dec (peak surcharge): £1.21 per cubic foot/month

Long-term storage fees (aged inventory surcharge): inventory stored for 181–365 days incurs a surcharge; inventory over 365 days incurs a higher surcharge. These are charged in addition to monthly storage fees.

Monitor your storage costs in Amazon → Fees → Storage in AskBiz. Set an alert for aged inventory in Settings → Alerts → Amazon → Inventory > 120 days.

Beyond the main three, additional fees that affect profitability:

Returns processing fee: charged when a customer returns an FBA order. Typically 20% of the original FBA fulfilment fee (often £0.50–£1.50 per unit).

Removal and disposal fees: if you want to remove unsellable inventory from FBA. Removal: £0.25–£1.00 per unit; disposal: £0.15–£0.60 per unit.

Labelling fee: if Amazon labels your products instead of you (FNSKU labels). £0.15–£0.20 per unit.

Unplanned prep fee: if your products arrive at FBA without proper preparation. £0.30–£1.50 per unit — avoidable with correct packaging.

AskBiz aggregates all fee categories in Amazon → Fees → Full Breakdown to show your total Amazon cost structure as a % of revenue.

Fee optimisation opportunities in AskBiz:

1. Identify oversized ASINs: go to Amazon → Fees → Size Tier Analysis. Some products are just over a size threshold — small packaging changes can drop them to a cheaper tier.

2. Find high-storage-cost ASINs: Amazon → Fees → Storage → Sort by 'Storage cost as % of revenue'. Move slow-moving ASINs to FBM or run promotions to clear stock before aged inventory surcharges kick in.

3. Compare FBA vs FBM margin: for heavy or large products, FBM (Fulfilled by Merchant) may be more profitable. Amazon → Products → [ASIN] → FBA vs FBM Comparison shows the margin difference.

4. Track fee changes: Amazon changes fee schedules annually (usually in January/February). AskBiz logs fee schedule changes and recalculates your per-ASIN margin automatically.