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How Much Are Amazon Seller Fees in 2025? (Complete Guide)

By: Levi Adler | Last Updated: Jul 18, 2025

How much are Amazon seller fees in 2025? On average, you’re looking at 30%–40% of your revenue going to Amazon through referral fees, FBA charges, and storage costs.

After more than a decade selling on Amazon, I’ve seen how fast those costs can add up, especially now that Amazon keeps introducing new fees and changing the rules. In this guide, I’ll walk you through what you’re really paying, where most sellers get hit hardest, and what I’ve done to keep more of my own profits.

Quick Summary: How Much Are Amazon Seller Fees?

Fee TypeDescriptionAverage Cost
Professional Seller PlanMonthly seller subscription. Required to sell on Amazon$39.99/month
Referral FeesA percentage of the sale price varies by product category.Avg 15% of selling price
FBA Fulfillment FeeCost for Amazon to pick, pack, and ship your products.$3.06 – $6.50 + per unit
FBA Storage FeeCost for storing your inventory in Amazon’s fulfillment centers.$0.78 – 2.40 per cubic foot
Aged-Inventory SurchargeFee for items stored longer than 180 days.$0.50+ per cubic foot
Low Inventory FeeFee for not maintaining a 28-day supply of inventory.$0.32 – $1.11 per unit
Inbound Defect FeeFee for shipments that don’t meet Amazon’s FBA requirements.$0.04 per unit
Inbound Placement FeeCost for shipping inventory to Amazon’s fulfillment centers.$0.16 – $0.68 per unit
Returns Processing FeeFee for products with a high return rate (excludes apparel and shoes).$1.78 – $150+ per returned item
Removal, Disposal, and Liquidation FeesFees for removing, disposing of, or liquidating unsold inventory.Varies depending on service

Amazon Selling Plans (Individual vs. Professional)

Before you can start selling, you'll have to choose one of the two seller plans Amazon offers: Individual or Professional.

The Individual plan has no monthly cost, but you’ll pay $0.99 per item sold, and you won’t have access to tools like Amazon advertising, the Brand Registry, or Buy Box eligibility. If you're treating Amazon as a hobby, this plan might be enough. But it doesn't make much sense for anyone trying to launch a legitimate business.

The Professional plan has a subscription fee of $39.99/month and unlocks everything you need to run a real business on Amazon. You get access to bulk listing tools, business reports, advanced marketing features, and the ability to sell in gated categories.

You’ll find a side-by-side comparison in the table below. Or, if you're still deciding, check out my step-by-step guide to creating your Amazon seller account.

Plan FeatureIndividual Seller PlanProfessional Seller Plan
Monthly FeeNo monthly fee, but $0.99 per item sold.$39.99/month, with no per-item fee.
Best ForHobby sellers or beginners testing the waters.Serious sellers who want access to advanced tools and plan to grow their business.
Buy Box EligibilityNot eligible to compete for the Buy Box / Featured OfferFull Buy Box eligibility.
Advertising (PPC)No access to Amazon Ads.Full access to Amazon Ads, Coupons, Promotions, and Deals.
Business Reports & AnalyticsBasic sales data only.Detailed business, inventory, and brand analytics.
Brand Protection & Marketing ToolsNot available.Eligible for Brand Registry, access to A+ content and many brand specific features.
Restricted CategoriesNo access to restricted or gated categories.Ability to apply for and sell in restricted or gated categories.
Financial CommitmentPay only when you sell an item, cheaper than Professional with fewer than 40 sales/month.Fixed monthly fee, cheaper than Individual at 41+ monthly sales.

Amazon Referral Fees

Amazon charges a referral fee on every item you sell. It’s their commission for letting you list on the platform and access their customer base. This fee applies whether you use FBA or FBM, and it’s based on a percentage of the total sale price, including shipping and gift wrap.

Most categories fall around the 15% mark, but that number can vary. Some products are as low as 6%, while others go higher, especially in niche or premium categories. You’ll find a full breakdown of referral fees by category in the table below.

Now, you can’t avoid referral fees, but you can be smart about how they affect your margins. One tip: sometimes dropping your price by a dollar or two can push a product into a lower referral tier. For example, selling a t-shirt at $15.50 would place you in the 10% referral fee category, but selling it for $14.99 would lower the fee to just 5%. That alone can improve your profit per unit and make your offer more attractive at the same time.

If you’re enrolled in Brand Registry or using Amazon’s Brand Referral Bonus, you may also qualify for rebates that offset a portion of these fees. Programs like these are worth exploring if you're building a brand or driving traffic from outside the platform.

Product Category
Referral Fee Percentage
Referral Fee Minimum
Amazon Device Accessories
45%
$0.30
Appliances - Compact
· 15% for the portion of the total sales price up to $300.00, and
· 8% for any portion of the total sales price greater than $300.00
$0.30
Appliances - Full-size
8%
$0.30
Automotive and Powersports
12%
$0.30
Base Equipment Power Tools
12%
$0.30
Baby Products
· 8% for products with a total sales price of $10.00 or less, and
· 15% for products with a total sales price greater than $10.00
$0.30
Backpacks, Handbags, and Luggage
15%
$0.30
Beauty, Health, and Personal Care
· 8% for products with a total sales price of $10.00 or less, and
· 15% for items with a total sales price greater than $10.00
$0.30
Business, Industrial, and Scientific Supplies
12%
$0.30
Clothing and Accessories
· 5% for products with a total sales price of $15.00 or less
· 10% for products with a total sales price greater than $15.00 and less than or equal to $20.00
· 17% for products with a total sales price greater than $20.00
$0.30
Computers
8%
$0.30
Consumer Electronics
8%
$0.30
Electronics Accessories
· 15% for the portion of the total sales price up to $100.00, and
· 8% for any portion of the total sales price greater than $100.00
$0.30
Eyewear
15%
$0.30
Fine Art
· 20% for the portion of Sales Proceeds up to $100 (with a minimum Referral Fee of $1.00);
· 15% for any portion of Sales Proceeds greater than $100 up to $1,000;
· 10% for any portion of Sales Proceeds greater than $1,000 up to $5,000; and
· 5% for any portion of Sales Proceeds greater than $5,000
--
Footwear
15%
$0.30
Furniture
· 15% for the portion of the total sales price up to $200.00, and
· 10% for any portion of the total sales price greater than $200.00
$0.30
Gift Cards
20%
--
Grocery and Gourmet
· 8% for products with a total sales price of $15.00 or less, and
· 15% for products with a total sales price greater than $15.00
--
Home and Kitchen
15%
$0.30
Jewelry
· 20% for the portion of the total sales price up to $250.00, and
· 5% for any portion of the total sales price greater than $250.00
$0.30
Lawn and Garden
15%
$0.30
Lawn Mowers and Snow Throwers
15% for products with a total sales price of up to $500.00, and
· 8% for products with a total sales price greater than $500.00
$0.30
Mattresses
15%
$0.30
Media - Books, DVD, Music, Software, Video
15%
--
Merchant Fulfilled Services
20%
$0.30
Musical Instruments and AV Production
15%
$0.30
Office Products
15%
$0.30
Pet Supplies
15%, except 22% for veterinary diets
$0.30
Sports and Outdoors
15%
$0.30
Tires
10%
$0.30
Tools and Home Improvement
15%
$0.30
Toys and Games
15%
$0.30
Video Games and Gaming Accessories
15%
--
Video Game Consoles
8%
--
Watches
· 16% for the portion of the total sales price up to $1,500.00
· 3% for any portion of the total sales price greater than $1,500.00
$0.30
Everything Else
15%
$0.30

Fulfillment Fees (FBA vs. FBM)

When selling on Amazon, you have two main fulfillment options: Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM). Each comes with its own fee structure, and understanding the differences can help you choose the best option for your business.

Fulfillment by Amazon Fees

With FBA, Amazon handles storage, packing, shipping, and customer service for your products. In exchange, you pay FBA fulfillment fees, which are based on the size and weight of your item. Additionally, there are separate pricing categories for apparel and low-cost items ($10 or less). These fees cover the cost of picking, packing, and shipping each order.

For example, a small standard-size item (under 1 lb) might cost around $3.00 to fulfill, while a large, bulky item could cost $10.00 or more. Amazon provides a detailed fee breakdown so you can calculate costs based on your product’s dimensions and weight. Keep in mind that FBA fees are separate from other costs, like storage costs or referral fees, which are covered in other sections of this article.

FBA Non-Apparel Fulfillment Costs

Product SizeShipping WeightFulfillment Cost
Small standard2 oz or less$3.06
-2+ to 4 oz$3.15
-4+ to 6 oz$3.24
-6+ to 8 oz$3.33
-8+ to 10 oz$3.43
-10+ to 12 oz$3.53
-12+ to 14 oz$3.60
-14+ to 16 oz$3.65
Large standard4 oz or less$3.68
-4+ to 8 oz$3.90
-8+ to 12 oz$4.15
-12+ to 16 oz$4.55
-1+ to 1.25 lb$4.99
-1.25+ to 1.5 lb$5.37
-1.5+ to 1.75 lb$5.52
-1.75+ to 2 lb$5.77
-2+ to 2.25 lb$5.87
-2.25+ to 2.5 lb$6.05
-2.5+ to 2.75 lb$6.21
-2.75+ to 3 lb$6.62
-3+ lb to 20 lb$6.92 + $0.08 per 4 oz above first 3 lb
Large bulky0 to 50 lb$9.61 + $0.38/lb above first 1 lb
Extra-large 0–50 lb0 to 50 lb$26.33 + $0.38/lb above first 1 lb
Extra-large 50+–70 lb50+ to 70 lb$40.12 + $0.75/lb above 51 lb
Extra-large 70+–150 lb70+ to 150 lb$54.81 + $0.75/lb above 71 lb
Extra-large 150+ lb150+ lb$194.95 + $0.19/lb above 151 lb

Fulfilled by Merchant Fees

With FBM, you’re handling fulfillment yourself or hiring someone outside of Amazon to do it. That means no FBA fees, but you’re taking on the full cost of shipping, packaging, returns, and storage.

For most new sellers, FBM consists of packing orders in your home and either dropping them off at the post office or scheduling a pick-up. In that case, your costs usually come down to postage, shipping supplies, and the occasional return. A typical order might cost $6–$10 to fulfill, while larger or heavier products can climb to $15 or more, depending on the shipping zone.

When it comes to returns with FBM, you’re responsible for shipping and for inspecting, repackaging, or writing off that inventory. If you’re selling high-priced or fragile items, just a few returns can take a noticeable bite out of your profit.

FeeEstimated CostsWhat This Includes
Shipping to the customer$4 – $15 per order (standard) • $15 – $25 (expedited shipping)This is what you’ll pay USPS, UPS, or FedEx to deliver each order. Rates depend on weight, size, and how far the package has to go. Amazon’s “Buy Shipping” option can lower the price by around 30%.
Packaging supplies$0.15 – $2.50 per orderBoxes, tape, shipping labels, bubble wrap, and anything else you use to pack the order safely. Bigger or fragile items usually cost more to pack.
Customer returns$6 – $15 per returnIf a customer sends something back, you may need to cover the return shipping and repackage or inspect the product before reselling it.
Storage & order fulfillment (if using a 3PL)$0.25 – $0.40 per cubic foot (monthly storage) • $1 – $3 per order shippedIf you don’t want to store products at home or pack orders yourself, a third-party fulfillment center can do it for you. This is optional and mostly used when your business grows beyond your home or garage..

Some sellers eventually move to a 3PL, which handles storage, packing, and shipping for a per-order fee. That’s optional and usually only makes sense once you start making consistent sales.

If you’re interested in learning more about Fulfilled by Merchant, I recommend reading my complete guide to starting an Amazon FBM business. It covers everything from account setup to choosing and setting up your shipping plan and working with 3PLs.

Amazon FBA Storage & Inventory Fees

Amazon’s storage and inventory fees add up fast if you’re not careful. They’re based on how long your products sit in storage, how you restock, and whether your shipments meet Amazon’s packaging requirements. In this section, I’ll walk you through the key fees to watch and how to keep them from chipping away at your profits.

FBA Monthly Storage Fees

FBA storage fees are charged monthly based on how much space your inventory takes up in Amazon’s warehouses. These fees are measured in cubic feet and vary depending on your product size and the time of year. Rates are much lower from January through September, but they jump significantly during Q4, when Amazon’s peak pricing rates replace the cheaper off-season schedule

These fees may seem small at first, but they add up quickly, especially if you’re overstocking your inventory. One of the most important things you can do as a new seller is to manage how much stock you send to FBA at once. I recommend aiming for 30 to 45 days of inventory per SKU, based on your expected sales. This gives you enough buffer to avoid stockouts without racking up unnecessary storage costs.

MonthStandard SizeOversize
January - September$0.78 per cubic foot$0.56 per cubic foot
October - December$2.40 per cubic foot$1.40 per cubic foot

To get that right, you’ll need to understand your sales velocity. Look at how many units you’re actually selling each week and plan restocks around that pace. Don’t guess, and don’t just send a huge batch to “play it safe.” That’s how you end up overspending on storage fees.

Aged-Inventory Surcharge

Amazon charges an aged inventory surcharge on any FBA inventory that’s been sitting in their warehouses for more than 180 days. This is on top of the regular monthly storage fees and increases the older the inventory gets.

The surcharge, formerly referred to as the long-term storage fee, starts once your product hits the 181-day mark and is assessed monthly. The current rates climb sharply the longer something stays in storage, with the highest tier hitting products stored for over a year. You’ll find a full breakdown of the costs in the table below.

Inventory AgeSurcharge
181-210 days$0.50 per cubic foot
211-240 days$1.00 per cubic foot
241-270 days$1.50 per cubic foot
271-300 days$5.45 per cubic foot
301-330 days$5.70 per cubic foot
331-365 days$5.90 per cubic foot
366 days or more$6.90 per cubic foot or $0.15 per unit (whichever is greater)

For new sellers, the key is staying ahead of this. Don’t wait until your product is close to the 180-day mark to make a decision. I recommend reviewing your inventory age report at least once a month. If a product is sitting longer than expected, act early by running a promotion, dropping the price, or starting to plan for a removal.

In some cases, even selling at break-even or a slight loss is better than paying months of surcharge fees. If something’s truly dead stock, look into Amazon’s FBA Liquidation program. You won’t recover much, but it stops the bleeding immediately and frees up space for more profitable inventory.

Low-Inventory-level Fee

Introduced on April 1, 2024, the Low-Inventory-Level Fee kicks in when your FBA stock for a product consistently drops below a 28-day supply. Amazon's explanation for this fee is to keep high-demand products readily available across Amazon’s network so Prime shipping stays fast and efficient. If both your 30-day and 90-day historical inventory levels fall under that threshold, Amazon adds a per-unit charge each time you make a sale.

SizeShipping Weight0–14 Days of Supply14–21 Days of Supply21–28 Days of Supply
Small standardUp to 16 oz0.890.630.32
Large standardUp to 3 lb0.970.70.36
Large standard3+ lb to 20 lb1.110.870.47

To avoid this, you need a reliable restocking rhythm. Similar to the Aged Inventory Surcharge, I recommend keeping at least 30 to 45 days of inventory at FBA for your main SKUs. That gives you enough buffer to stay above the fee line without risking overstock. It’s also worth checking your inventory health regularly through Amazon’s dashboard, especially the Inventory Age report and IPI metrics. These tools help you spot SKUs that are trending too low before they trigger fees.

Amazon Inventory Performance Index Report
Amazon's IPI Score Dashboard

Inbound Defect Fees

Amazon charges inbound defect fees when your FBA shipments don’t meet Amazon's shipping requirements. The two biggest fee triggers to watch out for are shipments sent to the wrong fulfillment center, and when your planned shipment never arrives

If you ship to a different warehouse than the one listed in your approved shipping plan, Amazon charges you for the extra work of rerouting and handling the inventory. These mistakes often happen when sellers try to change shipping destinations manually or use outdated labels. It’s important to double-check your shipment details before sending anything out, and once a plan is created, stick to it.

Size Weight Wrong Delivery Location FeeDeleted or Abandoned Shipment Fee
Small standard (Max 15 × 12 × 0.75 in)16 oz or less$0.04$0.02
Large standard (Max 18 × 14 × 8 in)12 oz or less$0.04$0.02
Large standard 12+ oz to 1.5 lb$0.05$0.02
Large standard 1.5+ lb to 3 lb$0.06$0.03
Large standard 3+ lb to 20 lb$0.07$0.04

Fees also apply to deleted or “abandoned” shipments. This happens when your shipment doesn’t arrive within Amazon’s required timeframe: 45 days for domestic shipments, 75 days for international shipments, or 30 days for additional shipments in a multi-destination plan. If Amazon flags a shipment as abandoned, you’ll be charged a per-unit fee, even if it was never received. Tracking your shipments and confirming delivery is the only way to avoid this.

In my experience, these fees are 100% avoidable with the right systems in place. Print shipping labels right away, schedule drop-offs or pickups quickly, and don’t sit on inventory that’s supposed to be in transit. If you use a third-party prep center, make sure they’re clear on Amazon’s shipping timelines too.

Inbound Placement Service Fee

The inbound placement service fee is charged when you send inventory to Amazon and choose to ship everything to a single location. Amazon then handles distributing your products across its warehouses, and the fee compensates them for that extra step.

As of 2025, standard-size products are no longer eligible for the old partial split option. That means you're now choosing between sending everything to one warehouse and paying a per-unit fee, or splitting your shipments across multiple destinations and potentially avoiding the fee entirely. The exact cost per unit varies depending on your product’s size, weight, and the destination, with the details listed in the table below.

Size WeightMinimal Shipment Splits Fee (Single Location)Amazon Optimized Shipments Fee (5+ Locations)
Small standard (Max 15 × 12 × 0.75 in)16 oz or less$0.16–$0.30No fee
Large standard (Max 18 × 14 × 8 in)12 oz or less$0.18–$0.34No fee
Large standard 12+ oz to 1.5 lb$0.22–$0.41No fee
Large standard1.5+ lb to 3 lb$0.27–$0.49No fee
Large standard 3+ lb to 20 lb$0.37–$0.68No fee

Which option is better depends on more than just the fee itself. Shipping to a single location makes your own logistics easier, but it can cost more overall if your freight or parcel carrier charges more for a longer haul. On the other hand, using Amazon’s “optimized split” can reduce the placement fee to zero, but you'll need to meet specific requirements like identical cartons and even item distribution. If you can't meet those, the savings may not be worth the added complexity.

The best approach is to compare total inbound costs, placement fees, carrier rates, and prep labor before choosing a shipment plan. In some cases, using a reliable 3PL (third-party logistics provider) to help split shipments or consolidate inventory can lower your overall costs, especially if you're shipping high volumes. For most sellers, making the right choice here is less about avoiding a specific fee and more about choosing the most cost-efficient and scalable workflow for their business.

Other Amazon Seller Fees You Should Know

While referral and fulfillment fees are the most well-known costs of selling on Amazon, there are a couple of other costs you need to be aware of. These can add up quickly, so it’s important to understand how they work and how they might impact your bottom line.

Returns Processing Fee

Amazon charges a returns processing fee on FBA products (excluding apparel and shoes) that exceed the returns rate threshold for that category. If your return rate goes above Amazon’s allowable rate, you'll pay a per-unit charge for each return that crosses that limit. The goal is to encourage sellers to improve product quality and accuracy in listings, reducing unnecessary returns.

The fee amount depends on your product’s size and weight and is charged a few months after the returns occur. Products with fewer than 25 units shipped in a month are exempt, along with new ASINs enrolled in the FBA New Selection Program (up to 20 units).

To avoid this fee, you need to keep your return rate in check. That starts with making sure your product listings are accurate with clear titles, honest descriptions, and photos that match what the customer will actually receive. Many returns happen because buyers are surprised by what shows up, not because the product is defective.

Below are the current return processing fee rates as of June 2025, for non-apparel / shoe items.

SizeShipping WeightReturn Fee
Small standard2 oz or less$1.78
-2+ to 4 oz$1.84
-4+ to 6 oz$1.90
-6+ to 8 oz$1.96
-8+ to 10 oz$2.02
-10+ to 12 oz$2.08
-12+ to 14 oz$2.14
-14+ to 16 oz$2.21
Large standard4 oz or less$2.36
-4+ to 8 oz$2.70
-8+ to 12 oz$3.05
-12+ to 16 oz$3.39
-1+ to 1.25 lb$3.70
-1.25+ to 1.5 lb$4.01
-1.5+ to 1.75 lb$4.32
-1.75+ to 2 lb$4.63
-2+ to 2.25 lb$4.66
-2.25+ to 2.5 lb$4.68
-2.5+ to 2.75 lb$4.71
-2.75+ to 3 lb$4.73
-3+ lb to 20 lb$5.00 + $0.05 per 4 oz above first 3 lb
Large bulky0 to 50 lb$6.74 + $0.32 per 1 lb above first lb
Extra-large 0–50 lb0 to 50 lb$26.33 + $0.38 per lb above first lb
Extra-large 50+–70 lb50+ to 70 lb$40.12 + $0.75 per lb above 51 lb
Extra-large 70+–150 lb70+ to 150 lb$52.45 + $0.75 per lb above 71 lb
Extra-large 150+ lb150+ lb$157.35 + $0.19 per lb above 151 lb

FBA Removal, Disposal, and Liquidation Order Fees

When you have excess, unsellable, or aging inventory in Amazon’s fulfillment centers, you’ve got three options: remove it, dispose of it, or liquidate it. Each option comes with its own cost, based on the size and weight of your product.

Removal orders let you retrieve your inventory, typically starting at around $0.25–$0.30 per unit for standard-size items. Disposal orders are a bit cheaper and allow Amazon to discard the inventory for you, though they may recycle or donate it instead of destroying it. Both options can get expensive quickly if you’re dealing with hundreds or thousands of units, which is why it’s important to stay on top of aging inventory before storage fees stack up.

SizeShipping WeightRemoval Fee (Per Unit)
Standard size0 to 0.5 lb$1.04
-0.5+ to 1 lb$1.53
-1+ to 2 lb$2.27
-More than 2 lb$2.89 + $1.06 per lb above first 2 lb
Large bulky, extra-large & special-handling items0 to 1 lb$3.12
-1+ to 2 lb$4.30
-2+ to 4 lb$6.36
-4+ to 10 lb$10.04
-More than 10 lb$14.32 + $1.06 per lb above first 10 lb

Liquidation offers a middle ground. Instead of removing or disposing of stock, you can have Amazon sell it to partnered liquidators. While you’ll only recover a small percentage of the item’s value, usually 5–20%, this method stops storage fees immediately and helps you recoup something rather than write off the loss entirely.

Whichever route you choose, the key is to act early. Don’t wait until your inventory crosses the 270 or 365-day mark when other surcharges kick in. I recommend setting regular check-ins to review your inventory age report and flag any ASINs that aren’t moving. A timely removal or liquidation decision can be the difference between a minor cost and a margin killer.

How to Calculate Your Total Amazon Fees

How much are Amazon Seller Fees - Revenue Calculator

If you’re using paid tools like Helium 10 or SellerAmp, you’re probably already familiar with estimating Amazon fees for potential products. But if you don’t have access to these tools, don’t worry; Amazon offers a free FBA Revenue Calculator inside Seller Central. This tool helps you estimate net profits, storage costs, and fulfillment options, making it easier to make informed decisions about pricing and inventory. Here’s how to use it:

  • Step 1: Add Product Information: Start by entering your product details. If your product is already listed on Amazon, you can search for it using the ASIN, UPC, or product name. For new products, use the “Define Product” tab to input details like package dimensions, weight, and category.
  • Step 2: Estimate Costs and Fees: Next, fill in the fields for product sale price, monthly units sold, cost of goods, and storage needs. The calculator will automatically factor in common costs like referral fees, fulfillment costs, and FBA storage fees. If you anticipate additional costs, like long-term storage fees or return processing fees, you can add them manually in the “Miscellaneous Cost” field. This gives you a more comprehensive view of your total expenses.
  • Step 3: Compare Fulfillment Options: One of the best features of the FBA Revenue Calculator is its ability to compare different fulfillment options side by side. For example, you can compare the costs of using FBA versus fulfilling orders yourself (FBM). Simply enter your estimated costs for each scenario, and the calculator will show you the net profit and margin for both.
Free Amazon Revenue Calculator Tool

5 Ways to Lower Your Amazon Seller Fees in 2025

Now that we’ve broken down the main fees Amazon charges, the next step is figuring out how to manage them. While some costs are unavoidable, there are a handful of simple strategies that can help you pay less per unit, avoid unnecessary charges, and protect more of your margins.

Here are five of the most effective ways I’ve found to reduce Amazon seller fees in 2025.

1. Optimize Your Packaging Size

Most new sellers overlook how much their packaging affects fees. But the size and weight of your product doesn’t just impact shipping. It determines how much you’ll pay in fulfillment, storage, removal, and even disposal costs. With Amazon using dimensional weight pricing across most of FBA, a few extra inches can quietly add up to thousands in lost profits.

If your product ships in an oversized box, you’re probably paying more than you should. I recommend working directly with your supplier to reduce packaging dimensions as much as possible without compromising quality or protection. If you sell soft goods, something as simple as vacuum sealing can shrink the volume significantly. And for items like sunglasses, switching from a hard case to a soft pouch is an easy way to cut down both size and cost.

Amazon Ships in Product Packaging for FBA - Amazon Packaging

You can also reduce your fulfillment fees through Amazon’s Ships in Product Packaging (SIPP) program. SIPP lets you ship products in their original branded packaging without Amazon adding a box, as long as the item meets Amazon’s testing requirements. If your packaging qualifies, you can save up to $1.30 per unit in fulfillment costs. It’s worth certifying your top-selling SKUs, especially if they already ship in compact, durable packaging. You'll be surprised at how quickly the savings add up.

Lastly, audit your product dimensions regularly. Amazon sometimes mismeasures products, especially after restocks or returns. If you spot a size tier jump you didn’t expect, open a remeasurement case. I’ve seen sellers recover thousands from one correction alone. A 0.3-inch error can push you into a higher fee bracket, and Amazon won't flag it unless you do.

2. Use Amazon’s FBA New Selection Program

The FBA New Selection Program is one of the best ways for Professional Sellers to reduce early FBA costs when launching new products. If your ASIN is new to FBA, you can qualify for free monthly storage, free removals, waived return processing fees, and even an average 10% rebate on your first 100 sales. It’s designed to give new listings a running start by lowering the costs of launching a new product.

As of 2025, Amazon is also waiving inbound placement fees for up to 100 units, and you can earn up to $400 in fee credits if your first FBA shipment is created within 90 days of listing a new offer. That stacks on top of free removals for unsold inventory and exemptions from low-inventory fees, all of which can make a big difference in those early months.

Amazon New Seller Incentives

What most sellers don’t realize is that this program is just one piece of a broader set of New Seller Incentives Amazon now offers. If you're within your first 90 days, New sellers can access over $50,000 in potential benefits by following their onboarding checklist. That includes a $200 credit toward Vine reviews, reimbursement of coupon fees during promo windows, and up to 10% back on your first $50K in branded sales.

3. Take Advantage of Amazon’s Low-Price FBA Program

If you're selling low-cost, lightweight products, Amazon's Low-Price FBA rates are another great way to help reduce your fulfillment fees. This program quietly replaced the old Small & Light initiative in 2023, and the best part is, there’s nothing to enroll in. Amazon applies the discounted rates automatically to any product priced under $10.

On average, you’ll pay about $0.77 less per unit compared to standard fulfillment costs. And unlike Small & Light, which used slower shipping speeds, this program keeps your products eligible for regular Prime delivery, so you don’t have to trade better margins for slower delivery.

If you’ve got a product priced just above the $10 mark, it’s worth running the numbers. I’ve seen sellers lower their price from $10.29 to $9.99 and end up making more per sale, thanks to lower referral and fulfillment fees. That price drop can also improve your conversion rate and help you move more units.

Just be sure to keep your pricing updated, since eligibility depends entirely on staying under that $10 mark.

4. Practice Good Inventory Management

Poor inventory management is one of the easiest places to lose money, and one of the easiest issues to fix. If you’re not tracking stock levels closely, fees like FBA monthly storage, aged inventory surcharges, and low-inventory penalties can add up fast. Staying on top of your inventory isn’t complicated, but it does take discipline.

As a rule of thumb, try to keep about 60 to 90 days of stock at FBA. That helps you avoid overstocking without risking low-inventory penalties or stockouts. Always keep a close eye on your sell-through rate and regularly check Amazon’s Inventory Performance Index (IPI) dashboard to flag slow movers before they start incurring additional charges.

If a product isn’t selling, don’t wait around. You can run a small promo, list it on Amazon Outlet, or schedule a removal order before long-term storage fees kick in.

Inventory management isn’t the flashiest part of selling on Amazon. It’s not as exciting as product launches or dialing in your ad campaigns. But it quietly does more for your bottom line than just about anything else. It keeps fees in check, improves restock limits, and frees up cash flow you can reinvest into your business. If you want to build a stable, profitable brand on Amazon, this is where it all starts. For a deeper look at how I manage inventory, check out my full guide on Amazon FBA Inventory Management.

5. Use Product Bundles to Reduce Per-Unit Fees

Product bundles are another great way to lower your per-item costs while increasing your average order value. When you group two or more related products into one bundle and sell it as a single SKU, you only pay one fulfillment fee and one referral fee on the entire set. That alone can save you a few dollars per order compared to shipping those same items separately.

When you create a bundle as a single SKU, Amazon picks, packs, and ships it just like any other product. If the packaging is compact and well-designed, you can keep the dimensional weight low and stay in a cheaper fulfillment tier, which helps maximize the savings.

Amazons Product Bundling Policy

That said, be careful. Amazon recently cracked down on certain types of custom bundles, especially in grocery, beauty, and pet categories. If you're creating your own bundles, make sure all the products come from the same brand or that you're authorized to repackage them. For anything mixed-brand, the safest route is listing it under the gift basket category and packaging it accordingly.

Frequently Asked Questions (FAQs)

How are Amazon seller fees calculated for FBA vs. FBM?

Amazon seller fees vary by fulfillment method. Both FBA and FBM sellers pay a referral fee per sale, but FBA includes extra charges for storage, fulfillment, returns, and prep services. FBM sellers handle their own shipping and storage, so they avoid those FBA-specific costs but pay for outbound shipping themselves.

Are Amazon seller fees refundable if a customer returns a product?

Partially. Amazon may refund part of the referral fee, but they deduct a refund administration fee, usually $5 or 20% of the original fee. Fulfillment fees are generally not refunded. Sellers also pay return processing fees on high-return items that exceed Amazon’s category thresholds.

Are Amazon seller fees tax-deductible?

In most cases, yes, Amazon seller fees like referral, fulfillment, and storage fees are considered business expenses and may be tax-deductible. However, tax laws vary by location and business type, so it’s best to confirm with a qualified accountant or tax advisor.

What is the commission to sell on Amazon?

Amazon charges a referral commission on each sale, typically 6% to 15% depending on the category. Some categories, like apparel or luxury items, may have rates as high as 45%. The most common referral fee is 15%, and it applies to both FBA and FBM sellers.

What is Amazon’s monthly fee for sellers?

Amazon charges $39.99 per month for a Professional seller account. Individual seller accounts have no monthly fee but pay $0.99 per item sold. There’s no flat monthly cost for using FBA. Costs are based on how much inventory you store and ship.

What is the storage utilization surcharge?

The storage utilization surcharge is an extra fee Amazon charges when you store too much inventory at FBA compared to your recent sales. This fee applies to Professional sellers holding more than 22 weeks of stock (excluding new inventory) and can cost up to $0.94 per cubic foot. To avoid it, focus on maintaining healthy sell-through rates and avoid overstocking slow-moving items.

Final Thoughts on Amazon Seller Fees

Amazon’s fee structure can feel like a moving target, but knowing where your money’s going is half the battle. Over the years, I’ve learned that small changes, like better packaging or inventory management, can lead to big savings.

From pricing and shipping to restock decisions, nearly every part of your operation affects what you pay in fees. Once you break down where the money’s going, you can start making smarter decisions that put more of it back in your pocket.

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