Understanding Amazon Fulfillment Fees: A Seller’s Guide to Maximizing Profits

Selling on Amazon can feel like navigating a labyrinth, especially when it comes to fees. It’s not just about the product cost; it’s about knowing where every cent goes once it hits Amazon’s system. In this guide, we break down Amazon fulfilment fees clearly and offer actionable tips for third-party sellers to optimize and protect their margins.

Understanding Amazon FBA: The Foundation for Profit

Amazon FBA (Fulfillment by Amazon) is the backbone of many successful ecommerce businesses, offering sellers a powerful way to scale without the headaches of in-house logistics. By enrolling in the FBA program, sellers send their inventory to Amazon’s strategically located fulfillment centers, where Amazon takes over the heavy lifting—literally. From picking and packing to shipping orders and handling customer service, Amazon FBA streamlines the entire fulfillment process.

This hands-off approach allows sellers to focus on growing their business, while Amazon’s fulfillment centers ensure fast, reliable delivery—especially to Prime customers. Leveraging Amazon FBA not only boosts operational efficiency but also increases the chances of winning the Buy Box, thanks to Amazon’s reputation for speedy shipping and top-notch service. For sellers looking to expand their reach and simplify order fulfillment, understanding and utilizing FBA fulfillment is a foundational step toward maximizing profits on Amazon.

Why Amazon Fees Can Be a Profit Drain (But Don’t Have to Be)

Trying to read Amazon's fee structure is like getting step-by-step directions written in invisible ink: you know the instructions are there, but actually making sense of them is nearly impossible. Fees sneak in all at once—from fulfillment and storage fees to referrals, returns, removals, and more. With FBA fee increases around 5.6% in 2024, a lack of clarity isn't just puzzling, it’s costly.

But here’s the good news: 2025 brings more stability. Amazon has frozen FBA and referral fees for U.S. sellers, offering incentives to help sellers grow without surprise hikes. This means fewer fee surprises and more ability to plan strategically.

The Fee Breakdown: What You’re Actually Paying For

1. Referral Fees

Every sale costs you a slice. Amazon charges a referral fee that is a percentage of the total sales price (typically 8% to 15%, depending on category)—or a minimum amount, whichever is greater.

2. FBA Fulfillment Fees

These cover picking, packing, shipping, and customer service. The 2025 FBA fulfillment fee or includes all fulfillment costs, such as picking, packing, and shipping cost. Charges vary by size, weight, and sometimes category.

Examples for non-apparel goods include:

• Small Standard items (e.g., up to 4 oz): ~$3.06 to $3.65
• Large Standard (1–1.25 lb): ~$4.99; (1.25–1.5 lb): ~$5.37
• More granular estimates show:
  • Up to 4 oz: ~$2.50
  • 15 oz: ~$3.21
  • 1.5 lb: ~$5.13
  • 2 lb: ~$5.37
  • 3 lb: ~$6.04
• Heavier or oversized items can cost significantly more—e.g., Large Bulky: base ~$8.84 + ~$0.38 per lb over first pound; Extra-Large: base ~$25+ plus extra per-lb charges.

The shipping weight used for fee calculation is determined by the greater of the product's unit weight or dimensional weight.

Product packaging and whether items are properly packaged can influence fulfillment fees. Therefor, it's crucial to consider dimensions and weight when making packaging decisions.

3. Monthly Storage Fees

You’re renting Amazon’s warehouse, and storage fees are charged per cubic foot of space that your inventory occupies in Amazon’s fulfillment centers. Fees are based on the daily average volume (in cubic feet) of inventory stored, with seasonal surcharges. Inventory storage fees (also called FBA inventory storage fees) are ongoing costs for storing inventory. Storing inventory classified as dangerous goods incurs higher fees. Long-standing inventory costs more via aged inventory fees and low-inventory-level fees.

4. FBA Inbound Placement Service Fee

If Amazon redistributes your inbound inventory across multiple fulfillment centers, Amazon placement fees apply. These fees can have a significant impact on your profit margins, especially if you're sending inventory into Amazon frequently or in bulk.

Amazon placement service fees depend on the size and weight of your items:

• Per unit fee (approx):
  • $0.30 per unit for standard-sized items < 1lb.
  • $0.40 per unit for standard-sized items 1-2lbs.
  • $1.30-$1.75+ per unit for large bulky items.

Always check Amazon's official fee page in Seller Central for the latest updates.

5. Returns Processing Fees

Amazon may charge fees on returns, calculated based on the product's size tier, shipping weight, and return rate. The fee amount varies depending on the product's size tier and shipping weight. For example, if return rate exceeds category threshold, only excess returns incur fees.

6. Aged Inventory Surcharge: The Hidden Cost of Slow-Moving Stock

One of the less obvious costs of using Amazon FBA is the aged inventory surcharge—a fee that can quietly erode your profits if you’re not careful. This surcharge is applied to products that have been sitting in Amazon’s fulfillment centers for too long: typically, more than 181 days for standard-size items and over 365 days for oversize items. The goal? To encourage sellers to keep their inventory moving and avoid clogging up valuable warehouse space.

If you let products linger, the aged inventory surcharge can add up quickly, impacting your bottom line. To avoid this, it’s essential to regularly review your FBA inventory, identify slow-moving stock, and take proactive steps—like running promotions, adjusting prices, or removing stagnant items from Amazon’s warehouses. Staying on top of your inventory health not only helps you sidestep unnecessary fees but also ensures your business remains agile and profitable within the Amazon FBA ecosystem.

7. Other Fees

• Removal/disposal fees for unfulfillable or slow-moving inventory
• Refund administration fees when accepted returns come with partial reimbursement
• High-volume listing fees
• Package prep fees for optional product preparation and packaging services (Note: Amazon is ending FBA prep services Jan 1, 2026.)
• Penalty fees for non-compliance with Amazon's product preparation, labeling, or packaging requirements
• Labeling fee for products that do not meet Amazon's barcode and labeling standards
• Selling plan fees, including the monthly subscription fee for the Professional Seller plan and seller fee for individual sales, which are charged regardless of sales volume

Sellers may also incur additional fees for certain services, such as returns, special packaging, or handling oversized products, as well as for non-compliance with Amazon's requirements.

2025 Fee Climate and Competitive Landscape

Wells Fargo analysts suggest that Walmart is now offering fulfillment services ~15% cheaper than Amazon, putting pressure on Amazon to keep its fee hikes modest—possibly around 2% per year instead of 5%.

So what’s changed (and what hasn’t)?

• Fee freeze—no increases to referral or FBA fees for U.S. sellers in 2025
• Lower inbound placement fees for bulky items via minimal splits; exemptions for new parent ASINs in New Selection program
• Continued complexity with returns, aged inventory, and storage fees—so active monitoring remains essential

Action Plan: How to Navigate FBA Fees Like a Pro

1. Gain Full Fee Visibility

• Use Amazon’s FBA Revenue Calculator to estimate costs upfront
• Use Seller Central’s SKU Economics Report to review per-unit breakdown by fee type—storage, fulfillment, referral, long-term, refunds

2. Optimize Packaging, Sizing and Unit Weight

• Shrink packaging where feasible to stay in lower fulfillment tiers
• Manage dimensions and unit weight to avoid large/oversize fees
• Use Amazon’s FBA Fee Preview Tool to simulate packaging changes before implementation. This tool allows you to see the estimated fee changes that might occur with different dimensions and weight associated with your products and packaging.

3. Manage Inventory Smartly

• Rotate promotions or markdowns for slow-selling items before aged inventory fees kick in
• Rekindle sales via Lightning Deals, but be sure to review the latest deal fees

4. Reduce Returns Risk

• Improve listing accuracy and visuals, especially for apparel/shoes (though those categories are exempt from returns-processing fees)
• Monitor return rate trends within Seller Central to avoid surprises

5. Use Automation to Spot Fee Leaks

• Third-party tools can help flag hidden or rising fees across ASINs, providing alerts on high-fee items, inventory risks, and returns trends
• Use an inventory management tool that helps you avoid aged inventory fees and low-inventory penalties (Check out Aura's integration with RestockPro).

Pricing Strategies: Turning Fee Knowledge into Profit

Mastering Amazon’s fee structure is the key to building profitable pricing strategies. Every product you sell is subject to a mix of fulfillment fees, referral fees, and, depending on your fulfillment method, additional prep and shipping costs.

To ensure your prices cover all costs and protect your margins, it’s essential to factor in every fee—whether you’re using Amazon FBA or another fulfillment method.

Automate Pricing and Protect Your Profit

An Amazon repricer is a powerful tool that eliminates the need to micromanage pricing, freeing you to focus on bigger-picture areas of your Amazon business. With AI-driven automation, Aura quickly reacts to market shifts while staying within your set minimum and maximum price limits. By protecting your margins and keeping you competitive, Aura helps streamline your strategy and transform the way you sell on Amazon.

Final Thoughts: Clarity Means More Profit

Amazon fees are complex—but that’s no excuse for margin erosion. With a steady fee environment in 2025, the time is ripe for clarity, efficiency, and strategic execution. Sellers who proactively understand and manage fulfillment fees will outperform those who don’t.

Take control of your costs, leverage the tools available, and keep your inventory moving. Your bookkeeping—and your bottom line—will thank you.

Let me know if you’d like charts, examples of cost comparisons, or real seller case studies to enrich the article further!

FAQs

How can I estimate my FBA fees?

Tools like Amazon’s revenue calculator make it easy to estimate your total fees and project your profits before listing a product. By comparing the costs of different fulfillment methods, such as FBA versus Fulfillment by Merchant (FBM), you can choose the most cost-effective approach for each product.

How often should I review fees?

Smart sellers regularly review their fee structure, adjust prices as needed, and use the revenue calculator to stay ahead of changes in Amazon FBA costs. This proactive approach not only keeps your business competitive but also ensures that every sale contributes to your bottom line, not just Amazon’s.

Do Amazon FBA fees change every year?

Yes, Amazon typically updates its fee structure annually. In some years, there are broad increases (like the 5–6% bump in 2024), while in 2025, Amazon froze most FBA and referral fees for U.S. sellers. Always check Seller Central announcements to stay up-to-date.

What is the difference between FBA fulfillment fees and storage fees?

FBA fulfillment fees are charged when an item is sold (covering handling, packing, and shipping). Storage fees are charged monthly based on how much space your products take up in Amazon’s warehouses.

Are returns included in FBA fees?

Standard returns are handled by Amazon as part of FBA. However, in some categories (like electronics), Amazon charges an additional returns processing fee, especially if your return rate is above the category threshold.

What happens if my products don’t sell quickly?

You may incur aged inventory or long-term storage fees. Amazon also charges removal or disposal fees if you choose to pull unsold inventory from warehouses.

Are there hidden fees sellers should watch out for?

Not exactly hidden, but often overlooked: removal/disposal fees, low-inventory-level fees, refund administration fees, and placement service fees for inbound shipments.

Can I reduce my FBA fees?

Yes. Sellers can lower FBA fulfillment fees by optimizing packaging to fit smaller size tiers, managing inventory to avoid long-term storage charges, and using automation tools to track fee changes.

Where can I find the latest FBA fee schedule?

Amazon publishes an updated fee schedule in Seller Central’s Help section each year. You can also check your “Fee Preview” report for personalized cost estimates across your catalog.

How do I know if FBA is worth it for my products?

It depends on your margins, product size/weight, and sales velocity. Use Amazon's revenue calculator estimating tool to model your costs versus self-fulfillment. For many sellers, the increased visibility and Prime eligibility outweigh the extra fees.

How do I choose the right Amazon selling plan for the cost?

Selecting the right selling plan is a crucial decision that directly affects your Amazon selling fees and overall profitability. Amazon offers two main options: the Individual plan and the Professional plan. The Individual plan is ideal for those just starting out or expecting to sell fewer than 40 items per month. With this plan, you pay a $0.99 fee for each item sold, in addition to standard selling fees.

For sellers with higher sales volumes or those seeking advanced features, the Professional plan is the better fit. This plan charges a flat monthly fee of $39.99, regardless of the number of items sold, plus applicable selling fees. The Professional plan unlocks valuable tools such as bulk listing, advanced inventory management, and access to advertising solutions—making it a smart investment for growing businesses. Carefully assess your expected sales and business needs to choose the plan that minimizes your monthly fee burden while providing the features necessary for your ecommerce business to thrive.