Overview

Amazon has lowered the referral charge for low‑priced clothing sold on its Canadian marketplace. Effective immediately, any apparel item listed for less than CAD 20 on Amazon.ca will be subject to a 10 % referral fee instead of the previous 17 % rate. The change directly affects sellers who target the budget‑friendly segment, offering a noticeable lift to per‑unit profitability.

Key Points

• Referral fee reduction — Apparel priced under CAD 20 now incurs a 10 % fee, down from 17 %.
• Margin boost of roughly CAD 1.40 — On a CAD 19.99 listing, the fee saving is about CAD 1.40 per unit.
• Canada‑only adjustment — The new rate applies exclusively to Amazon.ca; other Amazon marketplaces keep their existing structures.
• Other categories unchanged — All non‑apparel categories retain their current referral percentages.
• FBA costs remain separate — Fulfillment, storage, and other FBA fees are unaffected by the referral fee cut.

How the New Fee Structure Works

1. Identify eligible SKUs — Any clothing product with a listed price below CAD 20 automatically qualifies for the reduced 10 % referral fee.
   Example: A T‑shirt priced at CAD 18.50 will be charged CAD 1.85 in referral fees instead of CAD 3.15.

2. Maintain standard rates for higher‑priced items — Apparel listings at CAD 20 or above continue to be charged the regular 17 % referral fee.
   Example: A jacket listed for CAD 45 will still incur a CAD 7.65 referral charge.

3. Apply existing FBA fees — Regardless of the referral fee tier, sellers must still pay the standard fulfillment, storage, and optional service fees associated with FBA.
   Example: The same CAD 18.50 T‑shirt shipped via FBA will incur the usual per‑unit fulfillment fee based on size and weight.

4. Recalculate total cost of sale — Sellers should incorporate the new referral fee into their overall profitability model, alongside manufacturing, shipping, and Amazon service costs. : A seller who previously broke even on a CAD 19.99 shirt may now see a net profit of CAD 1.20 after accounting for the reduced referral fee and unchanged FBA costs.