Overview

Amazon’s Fulfillment by Amazon (FBA) program applies a multi‑layered fee schedule that covers everything from referral commissions to warehouse storage. The rates differ by product size, weight, category, and season, meaning they can erode profit margins if sellers do not factor them into pricing and inventory decisions. Grasping each fee component is essential for maintaining healthy margins and avoiding surprise charges.

Key Points

• Referral commission — Amazon retains a percentage of the final sale price; most categories are charged 15 %, while luxury segments such as jewelry can be billed up to 45 % of the total transaction amount.
• Fulfillment charge — A per‑unit fee based on size and weight; a standard‑size item weighing less than 1 lb typically costs around $2.50, whereas a heavyweight item over 2 lb may be billed at $5.00 or more.
• Monthly storage rate — Calculated per cubic foot of occupied space; from January through September the fee is $0.75 /ft³ for standard‑size inventory, but it jumps to $2.40 /ft³ during the October‑December peak period.
• Long‑term storage surcharge — Applied to units that sit in an Amazon fulfillment center for more than 365 days; the surcharge is the greater of $6.90 per ft³ or $0.15 per individual unit.
• Removal and disposal costs — Extracting inventory back to a seller’s own warehouse costs roughly $0.50 per standard‑size unit, while permanently disposing of unsellable stock is billed at $0.15 per unit.

How Amazon FBA Fees Work

1. Product listing and referral assignment — When a seller creates a new SKU, Amazon automatically attaches the category‑specific referral percentage. For instance, a kitchen gadget listed under “Home & Kitchen” will trigger a 15 % referral fee on the order subtotal plus any shipping charges.
2. Inbound shipment and storage calculation — After the seller ships the goods to an Amazon fulfillment center, the system measures each unit’s dimensions to determine its cubic‑foot footprint. A 12 × 8 × 4‑inch item occupies roughly 0.22 ft³, resulting in a $0.17 monthly storage charge during the low‑season window.