Amazon Seller Fees 2025-2026: The Real Cost of Selling on Amazon (And How to Pay Less)
- Amazon Growth Lab
- Dec 6, 2025
- 10 min read
Updated: Dec 23, 2025
You've done the math three times now. Between referral fees, FBA fees, storage fees, advertising costs, and that low inventory fee you didn't see coming, Amazon is taking somewhere between 28-32% of your revenue.
Your question: Is this normal?
The short answer: Yes, 25-30% in total Amazon fees is increasingly standard for FBA sellers. For many sellers, that number is climbing toward 35-40% as Amazon introduces new fees while competition drives up advertising costs to survive on the platform.
At Amazon Growth Lab, we manage financial reporting for over 100 Amazon seller accounts representing more than $100M in sales. Here's what the data actually shows about Amazon's true cost structure in 2025, what's changing in 2026, and more importantly, where you can reduce what you're paying.
The 2025 Fee Landscape: A Year of Stability
Before diving into the numbers, it's important to understand the context. After a turbulent 2024 that introduced multiple new fee types, Amazon committed to fee stability in 2025. According to Amazon's official announcement: "We will not increase US referral and FBA fees and will not introduce any new fee types."
This stability allowed sellers to focus on optimization rather than scrambling to adapt to new charges. Amazon even reduced some fees, including lowering inbound placement service fees for large bulky-size products by an average of $0.58 per unit.
However, this stability is ending. Amazon has announced fee increases effective January 15, 2026, making this guide essential reading for anyone planning their 2026 Amazon strategy.
The Five Fee Categories Eating Your Profit
Amazon's fee structure isn't a single number you can point to. It's a compounding stack of charges that varies by category, product size, and how well you manage inventory and advertising. Understanding each component helps you see where the bleeding happens.
Referral Fees: The Unavoidable 8-15%
Amazon charges referral fees on every sale as a percentage of the total sales price. These Amazon seller fees vary by category:
Most categories: 15%
Electronics & computers: 8%
Personal computers: 6%
Automotive/industrial: 12%
These rates are non-negotiable. You can't reduce them through negotiation, clever tactics, or volume discounts. They're simply the price of accessing 200+ million Amazon Prime members.
FBA Fees: The $3-$10+ Per Unit Tax
Amazon FBA charges per-unit fulfillment fees based on size tier. These Amazon FBA fees cover picking, packing, shipping, customer service, and returns through Amazon's fulfillment centers:
Small standard (under 16 oz): $3.22-$3.31
Large standard (under 1 lb): $4.75-$5.40
Large standard (1-3 lbs): $5.50-$7.17
Large bulky (over 50 lbs): $9.73-$137.32+
2026 Update: FBA fees will increase by an average of $0.08 per unit. Products priced above $50 face the largest increases, averaging $0.31 per unit for standard-size items due to enhanced processing and return handling.
Storage Fees: The Inventory Penalty
Monthly storage fees per cubic foot for 2025-2026:
Period | Standard Size | Oversize |
January-September | $0.78/cu ft | $0.53/cu ft |
October-December (Peak) | $2.40/cu ft | $1.40/cu ft |
Aged Inventory Surcharge (Replaces Long-Term Storage Fee)
Important: Amazon has replaced their old long-term storage fee with a more detailed Aged Inventory Surcharge structure that hits your wallet sooner. Fees now start at 181 days instead of 365:
181-270 days: Currently $1.25–$1.50
271-365 days: $1.50/cu ft monthly surcharge
365+ days: $6.90/cu ft or $0.15/unit (whichever is greater)
Think about that for a second. A product occupying 2 cubic feet held for 13+ months costs $16.54 per month in storage fees alone, nearly as much as the FBA fulfillment fee itself.
Low Inventory Level Fee: The Catch-22
Introduced in 2024 and still active through 2025-2026, Amazon charges a low-inventory-level fee when both your 30-day and 90-day historical days of supply drop below 35 days for a specific seller-FNSKU.
Fee rates by size tier:
Small standard (up to 16 oz): $0.32-$0.89 per unit
Large standard (up to 3 lb): $0.36-$0.97 per unit
Large standard (3-20 lb): $0.42-$1.11 per unit
The catch-22: Maintain lean inventory for good cash flow and pay low inventory penalties, or overstock for bad cash flow and tie up working capital while risking aged inventory surcharges. Finding the optimal inventory level (around 30-45 days of supply) is crucial.
Exemptions include: New FBA sellers (first year), products new to FBA (first 180 days), items enrolled in Amazon's auto-replenishment program, and low-volume products.
Inbound Placement Service Fee
Previously free, Amazon now charges $0.21-$1.58 per unit for splitting shipments across fulfillment centers. You can avoid this by using Amazon's AWD program or single-center shipping, but single-center means slower delivery to customers.
2025 Improvement: Amazon lowered inbound placement service fees for large bulky-size products by an average of $0.58 per unit for minimal shipment splits, effective January 15, 2025.
Amazon Ads: The 10-30% "Optional" Tax
Technically optional. Practically required for most sellers. Based on our analysis of client accounts:
New products launching: 20-40% of revenue initially
Established products: 10-20%
Highly competitive categories: 25-30%+
With CPCs rising 15-25% annually, Amazon advertising has shifted from a growth tool to simply a cost of doing business. Most sellers can't opt out without watching their sales disappear.
Critical 2026 Fee Changes: What's Coming January 15
⚠️ Action Required: These changes take effect January 15, 2026. Plan your Q1 pricing and inventory strategy now.
FBA Fulfillment Fee Increases
Amazon announced FBA fees will increase by an average of $0.08 per unit sold, or less than 0.5% of an average item's selling price. While Amazon frames this as modest, the impact varies significantly by product type:
Product Type | 2026 Fee Change | Impact Level |
Products under $10 | $0.86 discount (up from $0.77) | Positive |
Products $10-$50 | +$0.08 average | Low |
Products over $50 (small standard) | +$0.51 per unit | High |
Products over $50 (large standard) | +$0.31 per unit | Moderate-High |
Large bulky items | Variable increases | Moderate |
Amazon Ending FBA Prep and Labeling Services
Major operational change: Starting January 1, 2026, Amazon will completely stop offering FBA prep and item labeling services in the U.S. This affects inventory sent through AWD, AGL, SEND, or directly to FBA.
Your options:
Handle prep yourself (time-intensive, mistakes now cost 10-80x more)
Have your supplier do it (quality varies, especially with overseas manufacturers)
Use a third-party prep service (costs money but includes quality control)
Increased Inbound Defect Fees
With Amazon ending prep services, inbound defect fees have increased significantly. Any errors in labeling, packaging, or prep now trigger substantially higher penalty fees than in 2025. This makes compliance more critical than ever.
Other 2026 Changes
Buy with Prime: $0.24 per unit increase on average
Multi-Channel Fulfillment: $0.30 per unit increase on average
AWD West Region Storage: Increasing to $0.57/cu ft/month (19% increase)
AWD Transportation: Base rate increasing from $1.15 to $1.40/cu ft (22% increase)
What Sellers Actually Pay By Category
Total Amazon selling fees vary dramatically by category. Here's what we see across our client base managing $100M+ in sales:
Home & Kitchen Example ($25 product)
Referral fee (15%): $3.75
FBA fulfillment fee: $4.75
Monthly storage (3 months avg): $2.34
Advertising cost (25%): $6.25
Total Amazon fees: $17.09 (68% of unit sale)
This seller needs a minimum 35% margin after product cost just to break even.
Electronics Example ($100 product)
Amazon referral fee (8%): $8.00
FBA fulfillment fee: $5.40
Storage fee (2 months avg): $1.56
Amazon advertising (18%): $18.00
Total fees: $32.96 (33% of unit sale)
Lower referral fee percentage (8%) but higher advertising costs create a similar total burden.
Supplement Example ($40 product)
Referral fee (15%): $6.00
FBA fee: $3.22
Storage (4 months avg): $3.12
Amazon PPC (30%): $12.00
Low inventory fee: $0.50
Total Amazon seller fees: $24.84 (62% of unit sale)
Brutal advertising competition drives ad costs to 30-40% of revenue in the supplement category.
The 2025-2026 Fee Optimization Strategy
You can't eliminate Amazon's fees, but you can minimize them through strategic management.
Optimization 1: Inventory Timing (Save 20-40% on Storage)
Maintain 30-45 days of inventory instead of 90 days. This keeps you above the 35-day low inventory threshold while avoiding excessive storage fees. The capital freed up and storage fees saved typically outweigh any penalty fees.
For seasonal products, time the shipments to arrive 30-45 days before peak season, not 90 days early when you're paying peak-season storage rates.
Optimization 2: Advertising Efficiency (Cut Waste 20-30%)
Weekly optimization routine:
Review Search Term Reports in Amazon Seller Central
Add negative keywords aggressively to eliminate waste
Pause campaigns with ACoS 10+ points above break-even
Focus budget on exact match campaigns for proven converting keywords
At Amazon Growth Lab, we use Helium 10, Jungle Scout, and proprietary algorithms to eliminate wasted spend on Amazon PPC. Clients typically see 15-25% reduction in advertising costs while maintaining or increasing sales volume.
Optimization 3: Product Selection & Pricing
Some products simply cannot be profitable on Amazon's current fee structure. If your product math shows negative margins, either discontinue the SKU or bundle it with complementary products to improve unit economics.
2026 Pricing Consideration: With products over $50 facing higher fee increases, brands at the $49.99 price point should avoid pushing prices above $50 if margins allow. Products priced at $48-49 have a natural buffer against the higher fee tier.
Optimization 4: Fee Avoidance Through Compliance
Many fees are completely avoidable with proper planning:
Low inventory fee: Maintain 30+ days supply using demand forecasting
Aged inventory surcharge: Liquidate slow movers before 181 days
Inbound placement fee: Use AWD or strategic shipment timing
Refund administration fee: Improve listing accuracy to reduce returns
Inbound defect fees (2026): Ensure perfect prep compliance or use professional prep services
When DIY Fee Management Isn't Enough
Managing Amazon's complex fee structure shouldn't cost you thousands in daily revenue. At Amazon Growth Lab, we manage Amazon seller accounts with comprehensive financial analysis and fee optimization strategies built from years of managing real Amazon stores.
How We Reduce Fee Burden
Advertising Optimization:
We use Helium 10, Jungle Scout, and proprietary algorithms to eliminate 20-30% of wasted ad spend. Clients typically see 15-25% reduction in ACoS while maintaining sales velocity.
Inventory Management:
Strategic forecasting balances cash flow optimization with fee avoidance. We help clients maintain optimal inventory levels while minimizing both low inventory penalties and aged inventory surcharges.
Complete Fee Analysis:
We analyze total unit economics to identify unprofitable SKUs and recommend product selection improvements or bundling strategies that work within Amazon's fee structure.
Our Track Record
Ernst Grain: Scaled to $10M with 2.5% TACoS
Ray-Ban: 1,477% sales increase in 8 months
98% client retention rate
Managing hundreds of millions in Amazon sales
When Amazon fees are consuming 35%+ of your revenue, or when you lack time for weekly optimization, professional account management typically reduces overall fee burden by 3-10 percentage points for accounts doing $500K+ annually.
Frequently Asked Questions
Is 30% in Amazon fees too high to be profitable?
Not necessarily. If your product has 40%+ margin after manufacturing costs, 30% in Amazon selling fees leaves 10%+ net profit. Problems arise when products have thin margins (20-25%) where fees consume all profit potential. Calculate unit economics: (Selling price - COGS - Amazon fees) ÷ Selling price. Target 15%+ net margin to build a sustainable Amazon business.
How do successful sellers keep their fee percentage low?
Higher-priced products ($40+) spread fixed FBA fees across larger revenue. Strong organic ranking reduces advertising to 10-15% instead of 25-30%. Efficient inventory management avoids storage penalties. Focus on products with $40+ price points, invest in listing optimization to improve organic ranking, and target categories with lower referral fee percentages (8-12% vs 15%).
Should I switch to Amazon FBM to avoid FBA fees?
Only if you can fulfill it cheaper while maintaining fast shipping. Calculate true FBM costs: warehouse space, labor, packaging materials, shipping costs, customer service, and returns handling. For most sellers, Amazon FBA is actually cheaper and maintains Buy Box priority. FBM makes sense for oversized products with high FBA fees, or when you already run your own fulfillment operation efficiently.
How will the 2026 fee changes affect my business?
Impact varies by product. Products under $10 benefit from increased Low-Price FBA discounts. Products $10-50 face modest increases averaging $0.08 per unit. Products over $50 face the largest impact at $0.31-$0.51 per unit. Use Amazon's Revenue Calculator and Fee Preview report to model your specific SKUs with 2026 rates.
What's the difference between gross margin and net margin?
Gross margin is (Selling price - COGS) ÷ Selling price. Net margin is (Selling price - COGS - all Amazon fees) ÷ Selling price. Many sellers look at gross margin (40%+) and think they're profitable, completely ignoring that Amazon fees consume 25-30% of their sales proceeds, leaving actual net margin under 10%. Always calculate net margin including all fees.
How do I avoid the low inventory level fee?
Maintain at least 35 days of historical supply based on both your 30-day and 90-day averages. Use Amazon's FBA Inventory page to check your current days of supply. Consider enrollment in Amazon's auto-replenishment program for exemption. New sellers (first year) and products new to FBA (first 180 days) are also exempt.
How should I prepare for Amazon ending prep services in 2026?
Start now. Evaluate third-party prep services, train suppliers on Amazon requirements, or build internal prep capabilities. With inbound defect fees increasing 10-80x, the cost of errors makes professional prep services increasingly worthwhile. Factor prep costs into your 2026 unit economics before January.
When should I hire help to optimize Amazon costs?
When fees exceed 35% of revenue or when you lack time for weekly optimization. Professional account management at Amazon Growth Lab typically reduces overall fee burden by 3-10 percentage points through advertising optimization, inventory management, and strategic planning for accounts with identifiable inefficiencies. For sellers doing $500K+ annually, this often covers management fees through improved efficiency alone.
How often do Amazon fees change?
Amazon typically announces fee changes 60-90 days in advance through Seller Central notifications. Major changes usually take effect January 15 and sometimes in Q4 (peak season). Monitor the Seller Central fee schedule page monthly and subscribe to Amazon's seller newsletters. The 2026 changes were announced in October 2025, giving sellers about 90 days to prepare.
Final Thoughts: Preparing for 2026
Amazon's fee structure continues to evolve, rewarding operational excellence and penalizing inefficiency. The 2025 stability was a welcome respite, but 2026 brings new challenges that require proactive planning.
Key action items before January 15, 2026:
Model fee impact for all SKUs using Amazon's Revenue Calculator
Adjust pricing strategy for products over $50
Establish prep and labeling solution before January 1, 2026
Review inventory levels to optimize between low-inventory and aged-inventory fees
Audit advertising spend for waste reduction opportunities
The sellers who thrive in 2026 won't be the ones who ignore these changes. They'll be the ones who understand exactly how each fee impacts their unit economics and optimize accordingly.
Ready to optimize your Amazon fee structure for 2026?
Schedule a free account assessment with Amazon Growth Lab. We'll analyze your current fees and identify savings opportunities.
Note: Fee calculations based on 2025-2026 rates and typical product specifications. Your actual Amazon fees will vary based on current rates and exact product dimensions. Always verify with Amazon Seller Central for the most current fee schedules.
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