Amazon Seller Guide 2025

Amazon Selling Fees Explained

Starting your journey as an Amazon seller requires understanding a complex ecosystem of fees, percentages, and calculations. This comprehensive guide will walk you through everything you need to know about Amazon’s fee structure, helping you make informed decisions and maximize your profits on the world’s largest e-commerce platform. 

Amazon’s Core Fee Structure

Referral Fees 

Amazon tends to update its Seller Fees every year. However, in the year 2025, Amazon is not introducing any new fee types or increasing their Referral fees. Referral fees are what Amazon charges customers, a percentage of your total sales price for each item that is sold on their platform. These fees typically range from 8% to 15% of your selling price, though some categories have special structures. To find out specific referral fees for certain categories of Amazon in the US, you can refer to Amazon’s specific fees.  

For example, imagine you’re selling baby products: 

• For a $8 baby bottle, you’ll pay 8% ($0.64) 

• For a $25 baby carrier, you’ll pay 15% ($3.75) 

In 2024, Amazon introduced more seller-friendly rates for apparel items: 

• Items under $15: Reduced from 17% to 5% 
• Items $15-$20: Reduced from 17% to 10% 
• Special 3% referral fee for watches priced over $1,500

This below table shows the most popular and profitable categories for Amazon sellers in 2025, helping you make informed decisions about what to sell.

Understanding Storage Fees: FBA vs. FBM

If you’re selling on Amazon, understanding storage fees is crucial to managing your costs. The following section will assist you in understanding the storage fees for both FBA and FBM sellers.

FBA (Fulfillment by Amazon) Storage Fee Structure

When you choose FBA, you’re essentially hiring Amazon as your warehouse manager, shipping department, and customer service team. This service can significantly reduce your operational burden. The FBA Storage Fee Structure consists of monthly inventory storage fees and long-term storage fees. These fees cover the cost of storing your inventory at Amazon’s fulfillment centers and depend on factors such as product size, volume, and how long you store your products at the warehouse.

Monthly Inventory Storage Fees

The monthly inventory storage fees are calculated by the amount of space that your products occupy in Amazon’s fulfillment centers. This is calculated by the average daily volume of your inventory in cubic feet. The factors that influence this fee include:

• Product type
• Product size-tier (small standard, large standard, oversized)
• Standard sized items storage fees range from $3.43 to $7.17 for apparel items with additional charges based on weight.
• Oversized items, are defined as products measuring over 130 inches in combined length and girth, incur higher storage fees and may lead to inventory surcharge fees.
• Time of year or seasonality
• For example, during off peak seasons like January to September, storage fees are reduced by $0.09 per cubic foot. Whereas, during October to December, which is peak season, the rates can be up to 2-3 times higher. (However, storage fees for oversized items remain unchanged regardless of which season it is).
• Storage Utilization Surcharge

To better manage your storage fees, you should bear in mind the possible costs and charges that may accumulate over time as your inventory changes.

How to calculate Amazon FBA Fee Per Product

For example, if you have subscribed to Amazon’s FBA Storage services, and you are selling 100 items on Amazon, and each item is 10 inches in length, 6 inches wide, and 4 inches in height, use the following breakdown: 

1. Calculating the size of one item by multiplying the item’s dimensions: 

• • 10 × 6 × 4 = 240 cubic inches.
• Convert to cubic feet (since Amazon charges in cubic feet): 

• • 240 ÷ 1,728 = 0.1389 cubic feet per item.

2. Account for all items stored daily. Since you’re storing 100 items, the total space used per day is: 

• • 0.1389 cubic feet × 100 = 13.89 cubic feet. 

3. Apply the storage rate by multiplying the total space by the rate: 

• • 13.89 cubic feet × $0.75 = $10.42 per day. 

 4. Get the monthly cost by multiplying the daily cost by 30 days: 

• • $10.42 × 30 = $312.50 per month.

FBA Fulfillment Fees

FBA Fulfilment Fees are the costs charged by Amazon for packing and shipping customer orders. This fee per unit is calculated according to the weight and dimensions of the product.  

As of January 15, 2025, there are reduced rates for standard-sized and large bulky-sized products, with an average decrease of $0.58 per unit for minimal split shipments. Standard-sized items (one pound) cost approximately $3.22, which includes picking, packing, shipping, and customer service.

🎥 Watch our video for a detailed breakdown of  FBA Fulfillment Fees

📖 Or if you prefer reading, check out the blog to learn more about FBA Fulfillment Fees in detail.

Refund Administration Fees

Amazon charges refund administration fees when they process returns for customers. This can either be 20% of the refunded charge or $5, whichever amount is lower will be charged to the seller. 

Tools for Fee Management

You can utilize tools provided by Amazon, such as Amazon’s Fee Calculator, to help you estimate sales margins and compare different fulfillment methods.  

Other useful tools from Amazon include the Amazon Fee Preview Report, which allows sellers to view their fees before the incoming billing cycle, and the Revenue Calculator Tool to calculate potential profits and modify your pricing strategies. 

💡TIP: View your Fee Preview Report through your Seller Central account and navigate to the Reports section.

Being thorough in your calculations can help you estimate your costs better and manage your budget efficiently.

What is Storage Utilization Surcharge on Amazon?

If your inventory exceeds a certain utilization ratio, there may be a storage utilization surcharge. The storage utilization ratio is calculated as the average daily inventory stored divided by the average daily shipped over the past 13 weeks. This is monitored through the FBA dashboard and calculated independently for each size tier.

Factors for Calculating Storage Utilization Surcharge

• Product Size Tier 

• Month 

• Product Dimensions and Volume 

• Average Monthly Units Stored 

• Storage Utilization Ratio (The average amount of inventory stored daily compared to the average daily shipped amount over the past 13 weeks) 

• Dangerous Goods Classification.

This surcharge applies to sellers who: 

• Have a Professional account 

• Have their first shipment 365 days ago 

• Average daily inventory volume > 25 cubic feet 

• Storage utilization ratio above 22 weeks (as of April 1, 2024)

Aged Inventory Surcharge (Previously known as Long-term Storage Fees)

Amazon’s aged inventory surcharge, also known as Long-term storage fees (LTSF), are incurred when your items are stored in Amazon’s storage centers for more than 180 days. The aged inventory surcharge is evaluated on the 15th of each month, with charges applied between the 18th and 22nd. If not properly accounted for, these fees can add up quickly. So it’s important to conduct regular inventory health checks to see how long your products occupy Amazon’s fulfillment centers. 

Amazon charges LTSF twice a year, on February 15th and August 15th. It’s important to note that Amazon charges these fees separately to the standard storage fees.  

Aged Inventory Surcharge Fee Structure:

• 181-270 days: Standard rate 

• 271-365 days: Increased rate (as of February 15, 2024) 

• 365+ days: Premium rate 

Amazon provides Aged Inventory and Utilization reports to help sellers track inventory age distribution, items approaching fee thresholds, and products requiring action.  

Sellers have access to the Inventory Performance Dashboard that provides key insights into your inventory health. Through monitoring metrics such as the Inventory Performance Index (IPI), excess inventory levels, sell-through rates, and storage utilization metrics to assist you in assessing your inventory health.  

To avoid long-term storage fees on Amazon and move products faster, sellers could offer promotions and discounts or lower prices. Use pricing tools to adjust prices based on competitor pricing and sales velocity, and watch out for overstocking and incurring unnecessary fees from Amazon. 

🎥 Watch this video to understand “Amazon’s Long-Term Storage Fee and How to Avoid It”

👉 Check out our blog on BQool’s new Inventory Conditions update

Fulfillment by Merchant (FBM)

If the fees from Amazon for FBA seem like a lot, you can opt to fulfill your products by yourself. This option is called Fulfillment by Merchant (FBM) on Amazon and gives you more control but requires more hands-on management. Here’s what you need to consider: 

Shipping and Packaging

   A typical one-pound package might cost: 

• Shipping: $6 

• Packaging materials: $1 

• Total: $7 per unit 

📖 Read our blog post on “Amazon FBM Sellers & Prep Centers”

Time Investment

Consider the value of your time: order processing might take 10 minutes at $40 per hour, equating to $6.67 per order. You also need to take care of customer service, returns handling, and inventory management. 

Profit Calculation

Let’s walk through an example to understand how you would calculate profits on Amazon. 

Consider the following costs of a home organization product: 

• Product Cost: $8.00 

• Referral Fee (15%): $4.50 

• FBA Fulfillment: $3.22 

• Storage (per month): $0.15 

• Advertising (10% ACoS): $3.00 

• Net Profit: $11.12 (37% margin) 

Now, let’s sum up all the costs: Total Costs: $8.00 + $4.50 + $3.22 + $0.15 + $3.00 = $18.87 

To determine the selling price that results in a net profit of $11.12 (37% margin), we add the net profit to the total costs: 

Selling Price: $18.87 (Total Costs) + $11.12 (Net Profit) = $29.99 

Therefore, the selling price is $29.99.

🎥 Check out our video on How To Use Our Profit Calculator Tool

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Success on Amazon requires thorough understanding of fees, strategic planning, and continuous optimization. By mastering these elements and staying informed about fee updates, you’re well-positioned to build a profitable and sustainable Amazon business. 

Remember: The most successful Amazon sellers treat their fees not as obstacles but as investments in a powerful distribution channel. Regular monitoring, strategic planning, and proactive management are key to maintaining and growing your profitability. 

Naimi Ismadi

April 2, 2025

Naimi Ismadi is a content and marketing specialist at BQool, helping Amazon sellers scale their businesses through clear, engaging insights on repricing tools and smarter selling strategies.