What is a Referral Fee on Amazon? (FBA Fees per product category)

What is a Referral Fee on Amazon

Referral fees on Amazon are a critical aspect for sellers to consider when evaluating their business’s financial performance. Amazon charges these fees for each item a seller sells on the platform to compensate for providing various services such as traffic, payment processing, and fraud prevention. The referral fee varies depending on the product category and is typically around 15% of the total sales price.

Understanding Amazon’s referral fees is essential for sellers to manage their profits effectively. To calculate these fees accurately, you should familiarize yourself with Amazon’s Seller Tools, which can help you determine the applicable fee structure for your products.

Key Takeaways

  • Referral fees are charged by Amazon for each item sold and vary by product category
  • Typically around 15% of the total sales price, referral fees cover services like traffic and payment processing
  • Utilize Amazon’s Seller Tools to calculate fees and manage profits effectively and accurately

Understanding Referral Fees on Amazon

Referral fees help Amazon cover the cost of various services provided to sellers on their platform. When you sell a product on Amazon, you must pay a referral fee based on a percentage of the total sales price.

Referral Fee Percentage

The referral fee percentage varies depending on the product category and is typically around 15% of the sales price. However, it can range from 8% (such as in personal computers) to 45% (for Amazon device accessories) source. Always check the specific fee percentage for your product category to estimate your expenses accurately.

Minimum Referral Fee

Amazon also has a minimum referral fee, an additional cost for items with very low prices. The minimum fee usually ranges from $0.3 to $2. It ensures that Amazon receives fair compensation for its services even when products are sold at low prices.

Fees Calculated

To calculate the referral fee for your product, follow these simple steps:

  1. Determine your product’s category.
  2. Identify the referral fee percentage for that category.
  3. Calculate the referral fee by applying the percentage to the product’s sales price.

For example, if you sell a product for $20 in a category with a 15% referral fee, the calculated referral fee will be $3 (20 x 0.15).

Remember that if the resulting fee is lower than the minimum referral fee for your category, you will be charged the minimum fee instead. Consider the referral fee percentage and the minimum referral fee when estimating your Amazon selling expenses.

By understanding referral fees on Amazon, you can better manage your selling expenses and optimize your profit margins.

Referral Fees by Product Category

Amazon fees

When selling on Amazon, it’s essential to understand the referral fees that apply to your products. Referral fees are charged based on the product category. In this section, you’ll learn about referral fees for non-media and media categories.

Amazon FBA Referral fees

¹ Certain cell phone devices may require approval.
² Bundles containing a camera device and accessory products are classified under the Electronics Accessories category. Refer to our fee category guidelines for a detailed, searchable list of products in each category.
³ Besides the referral fee, media items have a closing fee of $1.80 per item.
⁴ The Everything Else category is for products that do not fit other categories. Do not list items in the Everything Else category that can fit another category.

Non-Media Categories

Non-media categories are those products that do not fall under media, like books or DVDs. Some popular non-media categories are:

  • Amazon Device Accessories include cases, charging cables, and mounts for Amazon devices like Echo and Kindle. The referral fee is usually around 45% of the sales price.
  • Kitchen and Home: This category includes cookware, bakeware, utensils, and various appliances—referral fees are 15%.
  • Pet Supplies: This category includes pet food, toys, and grooming products. The referral fee for pet supplies is 15%, except 22% for veterinary diets.
  • Sports and Outdoors: This category includes sports equipment, clothing, and outdoor gear. The referral fee is generally 15%.
  • Consumer Electronics: This category covers electronics like headphones, cameras, and tablets—referral fees range between 8%.
  • Office Products: Office supplies, desk accessories, and storage solutions fall under this category. Referral fees are 15% for these products.

Media Categories

Media categories typically include products like books, DVDs, music CDs, and video games. Here are some examples and their respective referral fees:

  • Books: This category includes physical books, cookbooks, textbooks, and more. The referral fee for books is 15% of the sales price.
  • Music: This category encompasses physical CDs of any music genre. The referral fee for music CDs is 15% of the sales price.
  • Video Games: Both console and PC games fall under this category. The referral fee for video games ranges from 8% to 15% of the sales price.
  • Jewelry: This category comprises all types of jewelry, such as necklaces, bracelets, and rings. The referral fee for jewelry ranges from 20% up to $250 and 5% if the total sales price exceeds $250.

Please note that these referral fees are subject to change, and it’s essential to refer to Amazon’s current fee schedule for up-to-date information. By being aware of the referral fees for your products, you can better plan and manage your business on Amazon.

You can find more referral fees and specific category information from Amazon’s Referral Fee Guide.

Amazon Seller Tools for Calculating Referral Fees

When selling on Amazon, keeping track of your potential fees can be essential for maximizing your profits. Various Amazon seller tools, such as the Amazon fee calculator, can help you estimate the costs of using this e-commerce platform.

The Amazon fee calculator is available on Seller Central, allowing you to calculate the referral and fulfillment fees for different product categories. Whether you sell baby products, outdoor goods, or 3D-printed items, this calculator offers valuable insights into your expenses.

Referral fees make up a significant portion of your expenses on Amazon. For example, the platform charges:

  • 8% for selling cell phone devices
  • 15% for outdoor items
  • Between 8% and 15% for baby products, and so on.

Since referral fees are category-specific, knowing the fees involved in your product niche is crucial.

Besides referral fees, be mindful that additional fees may apply when utilizing Amazon’s e-commerce platform:

  1. Fulfillment Fees: If you choose to use Amazon’s fulfillment services, you’ll need to consider the associated costs. These fees vary based on your product’s size, weight, and volume.
  2. Subscription Fees: Sellers using Amazon’s plan pay $0.99 per unit sold, while professional plan subscribers incur a $39.99 monthly charge.
  3. Listing Fees: While most product categories don’t require listing fees, specialty categories like fine art may have additional charges.

Leveraging Amazon’s seller tools will empower you to navigate these fees confidently. By understanding the referral and other expenses connected to your products, you can optimize your listings and pricing strategies on this popular e-commerce platform.

Types of Amazon FBA Fees

FBA fee structure

When you are selling on the fulfillment network of Amazon, understanding the various fees associated with the Fulfillment by Amazon (FBA) program is crucial to maintaining a profitable business. The two main FBA fees are fulfillment and inventory storage fees.

Fulfillment Fees

Fulfillment fees cover picking, packing, and shipping your orders. These fees depend on the size and weight of your products. In 2023, Amazon is increasing FBA outbound fee rates by $0.22, on average, and introducing more granular weight tiers for fees at the quarter and half-pound level.

Fulfillment fees include:

  • Order handling
  • Pick and pack
  • Weight Handling

Amazon’s FBA Revenue Calculator can estimate your fees based on product dimensions and weight.

Inventory Storage Fees

The Amazon storage fees are the costs of storing your products in Amazon’s fulfillment centers. These fees are based on the space your products occupy and are calculated per cubic-foot basis. Storage fees also vary depending on the time of year, with higher fees during the Q4 holiday season.

To help manage storage costs, you must monitor inventory levels and strategically plan shipments to Amazon. The Inventory Performance Index (IPI) tool can help you keep track of your inventory performance.

Remember that most referral fees on Amazon range between 8% and 15%. The fee percentage depends on the category of the product being sold. Remember to include these fees in your calculations to ensure you have an accurate picture of your overall costs involved with the Amazon FBA program.

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