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How Much Does It Cost To Sell On Amazon?

By Last updated on: January 12, 2024

Starting up an Amazon storefront has to be easy, right? You have to sign up and start selling your product simply… However, the reality is that selling on Amazon is not quite that simple or affordable. Amazon FBA fees are vital to profitability. Amazon is booming; everyone wants to be part of it. Consequently, it would be best to consider many time and financial expenses.

Here, we’ll cover the necessary cost information to sell on Amazon. Keep in mind that some Amazon investments covered will be averages and predictions. 

Amazon Seller Plans

Selling on Amazon entails a bunch of Amazon FBA fees. Amazon offers two selling plans for Individuals and Professionals. 

Professional Plan

The Professional selling plan costs $39.99/month plus a per-item referral fee that varies by category. If you sell more than 40 units a month, advertise your products, and qualify for top placement on product detail pages and advanced selling tools, like APIs and reports. If you want to sell products in restricted categories, consider using the Professional Plan.

Individual Plan

The Individual selling plan costs $0.99/unit plus a per-item referral fee that varies by category. If you’re going to sell less than 40 items a month, are still deciding what to sell, and don’t plan to advertise or use advanced selling tools, the Individual plan may be the best option for you.

Referral Fees

When you start selling on Amazon, remember they charge a referral fee for each item sold. It’s important to note that most referral fees range between 8% and 15%, depending on the product category.

Top CategoriesReferral fee percentageReferral fee minimum
Amazon Device Accessories45%$0.30
Beauty· 8% for products under $10
· 15% for items with over $10
Books15% + $1.80 closing fee
Clothing & Accessories (n/a Shoes, Purses, & Sunglasses)17%$0.30
Electronics Accessories· 15% of price up to $100
· 8% of the price over $100
Fine Art· 20% of sales up to $100
· 15% if $100 to $1,000
· 10% if $1,000 to $5,000
· 5% if over $5,000
Furniture· 15% of price up to $200
· 10% of sales over $200
Health & Personal Care· 8% for prices under $10
· 15% for sales over $10
Jewelry· 20% of price under $250
· 5% of the price over $250
Major Appliances· 15% of price up to $300
· 8% of the price over $300
Shoes, Handbags, & Sunglasses· 18% if price is under $75
· 15% if price is over $75
Toys & Games 15%$0.30

Refund administration fees

If a customer requests a refund on a product you have already been paid and Amazon administers the refund, Amazon assesses a fee to process it. The fee is either $5.00 or 20% of the refunded charge, whichever is less.

The refund administration fees are instantly paid with your Amazon account balance. If your account doesn’t have the funds to cover it, they will charge your credit card.

New in 2024: Low-Inventory-Level Fee

Amazon is introducing a new low-inventory-level fee beginning April 1, 2024. 

  • Application: Standard-sized products with consistently low inventory comparable to customer demand.
  • Criteria for the Fee: If product inventory levels are below 28 days, both in the long-term (past 90 days) and short-term (past 30 days).
  • Calculation Basis: The fee is computed at the parent-product level.

Consider using Amazon Seller Fulfilled Prime (SFP) or Fulfillment by Merchant (FBM) to avoid this fee for seasonal items. Additionally, the low inventory level fee won’t apply if you automatically replenish inventory with Amazon Warehouse Deals (AWD).

Fulfillment Fees

Amazon Fulfillment costs are associated with shipping your orders and depend on whether you fulfill your orders or use FBA (Fulfillment by Amazon). As a seller, you must determine whether your item is an apparel or a non-apparel product. Secondly, select the product size tier, whether standard or oversized. Then, once you know the product’s category and size tier, you can calculate the shipping weight and use the tables found here to determine which fee will apply.

Amazon FBA Fees

Another great tool to have handy is the Fulfillment by Amazon Revenue Calculator. This will help you determine what route to take when selling on Amazon. Does it make more sense for you to do FBA or fulfill your shipments?

sell on Amazon

Amazon Seller Storage Costs

Inventory storage fee charges also occur monthly. These are based on the daily average volume (measured in cubic feet) for the space your inventory occupies in Amazon warehouses. This fee is the volume measurement based on unit size when properly packaged and ready to ship.

Storage MonthStandard SizeLarge Bulky/Extra-Large
January – September$0.87 per cubic foot$0.56 per cubic foot
October – December$2.40 per cubic foot$1.40 per cubic foot
Prior to April 1, 2024
Storage MonthStandard SizeLarge Bulky/Extra-Large
January – September$0.78 per cubic foot$0.56 per cubic foot
October – December$2.40 per cubic foot$1.40 per cubic foot
After April 1, 2024

How do you get paid by Amazon?

When your Amazon Seller Account is settled and you have a positive balance, Amazon sends the money to your bank account using an ACH (Automated Clearing House) or electronic funds transfer. After Amazon initiates a payment, it can take up to five business days for the funds to appear in your bank account.

Before Amazon pays you, you must add a valid bank account as the deposit method within your seller account settings. Amazon cannot make payments to a credit card or online payment system like PayPal.

How can Refund Retriever help reduce Amazon FBA Fees?

In addition to FedEx and UPS refunds, Refund Retriever offers a solution to all your FBA reimbursement needs. We manually check the entire inventory lifecycle to ensure all inventory is available for sale. You’re already paying Amazon enough to sell your products. Now, receive reimbursements for all improperly received or miscounted items, refunds issued (by Amazon) when the customer never returned the item, and failure to give the 20% restocking fee. All of this without having to do a thing on your end! Learn more about our Amazon FBA service.

Amazon Feedback Request Strategies (8 PROVEN METHODS).
Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay-based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur, and other publications discussing parcel auditing, shipping, e-commerce, and more. Learn more at or call (800) 441-8085 for more information.

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