- What is an Amazon referral fee?
- Amazon charges a referral fee on every sale, calculated as a percentage of the selling price. Rates vary by category: Electronics and Beauty are 8%; most other categories, including Home and Kitchen, Toys, and Clothing, range from 15% to 17%.
- What does the FBA fulfillment fee cover?
- The FBA fee covers picking, packing, shipping, and customer service for orders fulfilled from Amazon warehouses. Standard items under 1 lb cost around $3.22; heavier or oversize items cost more. Note that storage fees are separate and not included in this calculator.
- How do I improve my Amazon profit margin?
- Key levers include: negotiating lower COGS with suppliers, choosing a size tier that keeps FBA fees low, pricing competitively without undercutting margins, and selecting categories with lower referral fee rates. Tracking net profit per unit before launching a product is critical.
- Are there other Amazon fees not included here?
- Yes. Monthly inventory storage fees, long-term storage fees, removal fees, and advertising spend are not included in this estimate. Use this calculator for a quick profitability screen, then verify with Amazon's official FBA Revenue Calculator for final numbers.
