The Amazon seller fee is made up of two parts, the referral fee and variable closing fee (where applicable).
It is calculated as a percentage of the sale price or a minimum dollar amount, whichever is greater.
The percentage of sale price varies by category and is typically 8-15%.
How are FBA fees calculated?
Voila, the FBA calculator in this example shows me that the:
- Selling on Amazon fee is: $1.00.
- Fulfillment By Amazon fee is: $5.20.
- The fee for me to ship the Item to Amazon is: $5.00.
- Total fulfillment cost (Selling on Amazon fee + FBA + My shipping cost) is: $11.20.
- Net profit is: $42.50.
- Net margin is: 85%
How much does it cost to start Amazon FBA?
The average product sold on Amazon FBA costs around $20 and can usually be manufactured for less than $5 each. Ordering a batch of 500 for your initial inventory means costs of $2,500 to start your FBA business. That means producer testing and inventory will cost you around $3,000 to get started.
How can I reduce my Amazon FBA fees?
Check our our 3 ways to lower your Amazon FBA fees.
- Listen to the Inventory Performance Dashboard. Thankfully, Amazon isn’t completely leaving its sellers out in the cold on this one.
- Be Selective About Which Items You Store with Amazon. FBA fees hit some products harder than others.
- Combo Packs.