FBA Fees Beginner 10 min read

Amazon FBA Fees Explained: A Complete Breakdown

FBA fees are the most confusing part of selling on Amazon for most new sellers. This guide breaks down every fee type β€” with real numbers β€” so there are no surprises.

By Muhammad Shahbaz Β· Founder, P4Product Β· Published June 1, 2025

When you sign up for Fulfillment by Amazon, you are essentially hiring Amazon to warehouse your products, pick and pack orders, handle shipping, manage customer service, and process returns. In exchange, Amazon charges several different types of fees.

Understanding each fee type is essential for calculating your true profitability before you order inventory. Let us break down every fee you will encounter.

Important: The fee figures in this guide are based on Amazon's published rates at time of writing. Amazon updates fees periodically. Always verify current fees at Amazon Seller Central β†— before making business decisions. Use our FBA Calculator which uses the same published data.

Overview: Types of Amazon FBA Fees

There are five main categories of fees every FBA seller should know:

  1. FBA Fulfillment Fees β€” charged per unit shipped to the customer
  2. Referral Fees β€” Amazon's commission on every sale
  3. Monthly Storage Fees β€” charged for space your inventory occupies
  4. Long-Term Storage Fees β€” extra charges for slow-moving inventory
  5. Selling Plan Fee β€” your monthly Amazon account subscription

1. FBA Fulfillment Fees

FBA fulfillment fees are charged per unit that Amazon ships to a customer. They cover picking, packing, shipping, customer service, and returns processing for that order. The fee depends entirely on your product's size tier β€” which is determined by the packaged dimensions and weight of your product.

Size Tiers Explained

Amazon categorises every product into a size tier based on its packaged weight and dimensions. Here are the main tiers:

Size Tier Max Weight Max Dimensions FBA Fee Range
Small Standard16 oz15" Γ— 12" Γ— 0.75"$3.06 – $3.38
Large Standard20 lb18" Γ— 14" Γ— 8"$3.52 – $7.17
Large Bulky50 lb59" Γ— 33" Γ— 33"$9.73+
Extra-Large (under 70 lb)70 lbβ€”$26.33+
Extra-Large (70–150 lb)150 lbβ€”$89.98+

Why size tier matters so much: A product that qualifies as Small Standard pays roughly $3.06–$3.38 in FBA fees. The exact same product, if packaged just slightly too large, could jump to Large Standard and pay $4.37–$5.21. That difference compounds dramatically at scale β€” 500 units per month means $500–$1,000 more in FBA fees annually just due to size tier.

How to Find Your Product's Size Tier

The most reliable way is to check in Amazon Seller Central. After creating a product listing, you can use the FBA Revenue Calculator to see the exact fee for your ASIN. The fee is based on your product's packaged weight and longest/median/shortest dimensions when ready for shipment.

2. Referral Fees

Referral fees are Amazon's commission for every sale you make. They are charged as a percentage of the total sale price (including item price; excludes taxes). There is a minimum referral fee of $0.30 per item regardless of the percentage.

Referral Fee Rates by Category

Product CategoryReferral FeeMinimum
Apparel & Accessories17%$0.30
Automotive Parts12%$0.30
Baby Products8%$0.30
Beauty & Personal Care8%$0.30
Consumer Electronics8%$0.30
Grocery & Gourmet Food8%$0.30
Health & Household8%$0.30
Home & Kitchen15%$0.30
Jewelry20%$0.30
Kitchen & Dining15%$0.30
Lawn & Garden15%$0.30
Office Products15%$0.30
Pet Supplies15%$0.30
Sports & Outdoors15%$0.30
Toys & Games15%$0.30
Video Games15%$0.30

Source: Amazon Seller Central β€” Selling on Amazon fee schedule β†—. Verify current rates before relying on these figures.

3. Monthly Inventory Storage Fees

Amazon charges you monthly for the cubic feet of space your inventory occupies in their fulfillment centers. Storage fees vary by season β€” they increase significantly from October through December to reflect Amazon's peak season warehouse demand.

PeriodStandard-SizeOversize
January – September$0.75 per cubic foot$0.48 per cubic foot
October – December$2.40 per cubic foot$1.20 per cubic foot

Peak season planning is critical. Sending too much inventory to Amazon's warehouses in September can result in high storage fees during October–December. Many sellers use a "just in time" approach to inventory management during peak season to minimise storage costs.

How to Estimate Monthly Storage Cost Per Unit

To estimate storage cost per unit, you need your product's cubic footage: (Length Γ— Width Γ— Height in inches) Γ· 1,728 = cubic feet. Then multiply by the monthly storage rate and divide by the number of units in that cubic foot.

Most small standard-size products have a storage cost well under $0.10 per unit per month, making storage fees a minor cost compared to FBA fulfillment and referral fees. For large, slow-moving products, storage can become a significant factor.

4. Long-Term Storage Fees

Amazon charges additional long-term storage fees on inventory that has been in an Amazon fulfillment center for more than 365 days. This is assessed on the 15th of each month.

The fee is $6.90 per cubic foot or $0.15 per unit, whichever is greater, for items stored over 365 days.

The best way to avoid long-term storage fees is to manage your inventory carefully β€” only send what you expect to sell within 6–9 months, and use Amazon's inventory management tools to identify slow-moving stock.

5. Selling Plan Fee

Amazon offers two selling plan options:

PlanCostBest For
Individual$0.99 per item soldSellers selling fewer than 40 units/month
Professional$39.99/month flatSellers selling 40+ units/month; required for FBA

If you are using FBA seriously, you will almost always be on the Professional plan. At $39.99/month, divide this by your monthly units sold to get a per-unit account fee. At 100 units/month, this is $0.40 per unit; at 500 units/month, just $0.08 per unit.

Other Fees to Be Aware Of

Returns Processing Fees

For most product categories, Amazon does not charge an additional fee for returns processing β€” the cost is absorbed into the FBA fulfillment fee. However, for certain categories (like apparel and shoes where return rates are higher), Amazon may charge a returns processing fee.

Removal and Disposal Fees

If you want to remove unsold inventory from Amazon's warehouses, or have Amazon dispose of it, there are fees ranging from $0.97–$13.05 per unit for removal (to have it shipped back to you) or $0.30–$1.04 per unit for disposal.

Unplanned Service Fees

If your inventory arrives at Amazon's fulfillment center without proper preparation or labelling, Amazon may charge unplanned service fees. These can add up quickly. Always follow Amazon's packaging and labelling requirements carefully.

Putting It All Together: A Real Example

Let us calculate total fees for a sample product:

Fee TypeCalculationAmount
Referral Fee$27.99 Γ— 15%$4.20
FBA Fulfillment FeeLarge Standard, ~1 lb$4.37
Monthly Storage (est.)~0.05 cu ft Γ— $0.75$0.04
Total Amazon Fees$8.61

That is $8.61 in Amazon fees on a $27.99 sale β€” 30.8% of the selling price before you even account for your product cost or shipping to Amazon. This is why calculating fees accurately before sourcing a product is so important.

Calculate Your Exact FBA Fees

Enter your product details and our calculator applies the correct fees automatically.

Use the FBA Profit Calculator β†’

Frequently Asked Questions

In the US marketplace, FBA fees do not include VAT. In UK and EU marketplaces, Amazon does charge VAT on its services. Our calculators are designed for the US (amazon.com) marketplace. If you sell on other Amazon marketplaces, you will need to account for applicable taxes and verify fees in those specific Seller Central accounts.

The most accurate way is to use Amazon's FBA Revenue Calculator in Seller Central, entering your specific ASIN or product dimensions. This gives you the exact fee based on your product's measured dimensions and weight. Our calculator uses fee tier estimates based on the size class you select, which is a good approximation for planning purposes.

Amazon typically announces fee changes in advance (usually 60 days notice). When fees increase, your profit margin decreases unless you raise your selling price to compensate. This is why maintaining a healthy margin buffer (20%+) is important β€” it protects you when fees inevitably increase. When Amazon announces fee changes, update your cost calculations immediately to understand the impact on your products.

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