Selling on Amazon may seem like a straightforward path to eCommerce success, but understanding the platform’s fee structure is where many sellers hit a wall. Whether you’re just starting or scaling your operations, working with a trusted UK-based Amazon agency can make all the difference in how you navigate the cost landscape and maintain long-term profitability.
This guide breaks down Amazon’s key selling fees and shows you how to make smarter decisions with the help of experienced professionals.
Understanding the Basics of Amazon Fees
Amazon’s selling fees vary depending on your business model (e.g., individual vs. professional), product categories, and fulfilment methods. While the platform offers immense reach, it comes at a cost, and those costs can quickly eat into your margins if you’re not careful.
Generally, Amazon sellers need to be aware of the following types of fees:
- Referral Fees
- Subscription Fees
- Fulfilment Fees
- Storage Fees
- Optional Service Fees
Let’s explore what each of these entails.
1. Referral Fees: Amazon’s Cut of the Sale
Amazon charges a referral fee on each product sold, which is a percentage of the total sales price (including shipping and any gift wrap charges). This percentage depends on the product category—ranging from 6% to 45%.
For example, electronics might incur a 7% fee, while apparel could go up to 17%. It’s essential to review your category rates regularly, as they’re subject to change and can impact pricing strategy.
2. Subscription Fees: Individual vs. Professional Sellers
Amazon offers two selling plans:
- Individual Plan: No monthly fee, but Amazon charges £0.75 per item sold.
- Professional Plan: Costs £25/month (excl. VAT), with no per-item fee.
If you’re selling more than 35 items a month, the Professional Plan is more cost-effective. It also unlocks advanced features like bulk listings and access to Amazon Ads.
3. Fulfilment Fees: FBA vs. FBM
Fulfilment by Amazon (FBA) lets you store products in Amazon’s warehouses, and they handle picking, packing, shipping, and customer service. While convenient, FBA comes with fulfilment fees based on product size and weight.
Alternatively, Fulfilment by Merchant (FBM) allows sellers to handle fulfilment themselves, avoiding FBA fees but requiring more hands-on management.
4. Storage Fees: Monthly and Long-Term
For FBA sellers, storage fees apply based on how long inventory remains in Amazon warehouses. The fees are charged monthly and increase significantly for inventory held longer than 365 days.
Careful inventory management is crucial to avoid unnecessary long-term storage costs and maintain healthy profit margins.
5. Additional Service Fees
Other fees may include:
- Returns processing for certain categories
- Labelling or prep services, if Amazon prepares your products for shipment
- High-volume listing fees if your catalogue exceeds 100,000 ASINs
Understanding these hidden costs is key to building a lean and efficient Amazon business.
For a full breakdown of all applicable charges, refer to this in-depth resource on what are Amazon selling fees?
How a UK-Based Amazon Agency Can Help
Trying to manage these fees while also sourcing products, optimising listings, running ads, and monitoring reviews? It’s a lot.
That’s where a UK-based Amazon agency steps in. These agencies specialise in helping sellers make sense of complex fee structures, identify unnecessary costs, and optimise every element of their business model.
What Agencies Bring to the Table
- Fee Audits: Agencies can analyse your current fees and identify opportunities to reduce costs through more efficient fulfilment or packaging.
- Product Category Optimisation: Placing your product in the right Amazon category can reduce referral fees and boost discoverability.
- Pricing Strategy: Agencies use data to help you price competitively while accounting for fees and maintaining healthy margins.
- Inventory Management: Smart forecasting ensures you avoid excess storage fees and never go out of stock during peak demand.
Avoiding Common Pitfalls
Without proper planning, fees can turn a profitable product into a loss-maker. Here are a few common mistakes new sellers make:
- Ignoring dimensional weight in FBA calculations
- Choosing the wrong fulfilment method
- Underestimating long-term storage costs
- Overlooking hidden costs like returns and prep services
Working with an expert team helps you avoid these issues and keeps your business on track.
The Bigger Picture: Growth Through Smart Optimisation
When you treat Amazon fees not as obstacles but as variables you can control, you unlock smarter, more scalable growth. It’s not just about cutting costs—it’s about making informed decisions that improve ROI across your Amazon business.
With experienced guidance, sellers can:
- Launch new products with clearer cost expectations
- Plan marketing campaigns with true profit margins in mind
- Expand into new markets like the USA with fee strategies already in place
Final Thoughts
Success on Amazon doesn’t just come from having a great product. It comes from understanding the platform’s ecosystem, especially when it comes to fees. These costs can quietly erode profits or, when managed properly, become a lever for growth.
If you’re serious about selling smarter and scaling faster, partner with a team that understands how to play the game—and win. A trusted UK-based Amazon agency can help you navigate the fine print and make every pound count.
