Selling on Amazon has become one of the most profitable online business opportunities, thanks to the Fulfillment by Amazon (FBA) program. With FBA, Amazon handles storage, packing, shipping, and customer service for sellers, allowing entrepreneurs to focus on scaling their business.
But the catch? Amazon FBA fees. While the program offers convenience and reach, sellers must understand the FBA fees breakdown to calculate profit margins accurately. In this article, we’ll explain every fee you’ll face in 2025, along with tips to reduce costs and boost profits.
What is Amazon FBA?
Amazon FBA allows sellers to send their products to Amazon’s warehouses (fulfillment centers). Once a customer places an order, Amazon handles the picking, packing, shipping, returns, and customer service.
While this makes selling easier, sellers are charged for services under different fee categories. Let’s break them down.
Amazon FBA Fees Breakdown
1. Fulfillment Fees (Pick & Pack)
Fulfillment fees cover picking, packing, and shipping an order. These are based on the product’s size and weight.
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Standard-Size Products: Smaller items cost less (e.g., lightweight electronics, books).
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Oversized Products: Larger items, such as furniture or sports gear, come with higher fees.
💡 Example: In 2025, standard-size items under 1 lb might cost around $3–$4 per unit, while oversized items can go up to $8–$15+ per unit.
2. Storage Fees
Sellers pay for storing their inventory in Amazon warehouses. Fees depend on:
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Monthly Storage Fees: Charged per cubic foot, with rates higher during holiday season (October–December) due to increased demand.
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Long-Term Storage Fees: Charged for inventory stored longer than 365 days.
💡 Example: Standard storage may cost $0.90–$2.40 per cubic foot per month, while oversized items cost more.
3. Referral Fees
Amazon charges a percentage of each sale as a referral fee.
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Rates usually range from 8% to 15%, depending on the product category.
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Categories like electronics may be closer to 8%, while jewelry or beauty products may be 15%.
💡 Example: A $50 product with a 15% referral fee → $7.50 goes to Amazon.
4. Removal & Disposal Fees
If products aren’t selling, you may request Amazon to:
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Remove items (ship back to you).
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Dispose of items (destroy or recycle them).
These services are charged per unit, often ranging from $0.50–$1.50 per item, depending on size and weight.
5. Return Processing Fees
For certain categories (like clothing and shoes), Amazon provides free returns to customers. Sellers, however, are charged a return processing fee, which is equivalent to the original fulfillment fee.
6. Unplanned Service Fees
If your inventory arrives at Amazon warehouses without proper labeling or preparation, Amazon charges unplanned service fees to fix issues. These may range from $0.20–$2.00 per unit, depending on the required service.
Example Amazon FBA Fee Calculation
Let’s say you’re selling a standard-size product priced at $25:
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Referral Fee (15%) = $3.75
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Fulfillment Fee = $3.22
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Monthly Storage Fee = $0.75 (estimated per unit/month)
✅ Total Amazon Fees = $7.72
💰 Net Revenue per unit = $17.28 (before product cost & shipping to Amazon)
This shows why understanding the Amazon FBA fees breakdown is critical for profit planning.
Tips to Reduce Amazon FBA Fees
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Optimize Product Size & Weight – Even reducing packaging dimensions slightly can shift products into a lower fee bracket.
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Improve Inventory Management – Avoid long-term storage fees by monitoring stock levels.
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Use Amazon Fee Calculator – Amazon provides tools to estimate fees before you list a product.
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Bundle Products Smartly – Selling bundles can reduce per-unit fulfillment costs.
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Negotiate with Suppliers – Lower product cost helps offset Amazon’s fees.
Why Sellers Still Choose FBA Despite Fees
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Prime Badge: Products fulfilled by Amazon are eligible for Prime, boosting visibility and conversions.
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Customer Trust: Buyers trust Amazon’s fast shipping and reliable service.
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Scalability: Sellers can expand quickly without managing their own logistics.
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Time-Saving: Amazon handles returns, refunds, and support.
Conclusion
The Amazon FBA fees breakdown may seem overwhelming, but once you understand each category, you can make smarter decisions to maximize profit. By accounting for fulfillment, storage, referral, and hidden costs, sellers can price products correctly and scale their business effectively.
Amazon FBA isn’t free, but its reach, convenience, and Prime eligibility make it one of the best options for eCommerce sellers in 2025.
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