Amazon has implemented an inventory performance index (IPI) to track inventory levels and optimization. If a business is unable to keep its IPI above the minimum threshold, it will be subject to inventory storage restrictions and higher storage fees. In addition, FBA imposes long-term storage fees on products that take longer than 180 days.
Breakdown of Amazon FBA Fees
1. Fulfillment Fees – Charged per unit, these fees depend on the size and weight of each product. They cover picking, packing, and shipping but can be costly for oversized or heavy items.
Amazon’s Fulfillment by Amazon (FBA) program structures its fulfillment fees based on the size and weight of each product. Consider a standard-size non-apparel item weighing 1 lb. As of January 15, 2025, the fulfillment fee for such an item is $3.22. Source: sellersnap.io
2. Storage Fees – Monthly storage fees are based on the volume of inventory stored in Amazon’s warehouses. Prices increase during peak seasons, particularly from October to December.
Amazon’s Fulfillment by Amazon (FBA) program charges monthly storage fees based on the volume of inventory stored in its fulfillment centers. These fees are calculated per cubic foot and vary depending on the time of year and the size of the product.
Standard-Size Products:
January – September: $0.78 per cubic footOctober – December: $2.40 per cubic foot
Oversize Products:
January – September: $0.53 per cubic footOctober – December: $1.40 per cubic foot
Note: These rates reflect a reduction during the non-peak period (January through September) for standard-size products, decreasing from $0.87 to $0.78 per cubic foot.Source: goatconsulting.com
Example Calculation:
If you have a standard-size product occupying 2 cubic feet of space:
January – September: 2 cubic feet × $0.78 = $1.56 per monthOctober – December: 2 cubic feet × $2.40 = $4.80 per month
These fees underscore the importance of efficient inventory management, especially during peak seasons, to minimize storage costs.
3. Long-Term Storage Fees – Inventory stored in Amazon fulfillment centers for more than 365 days incurs an additional surcharge, making it expensive for slow-moving products.
Amazon’s Fulfillment by Amazon (FBA) program imposes long-term storage fees on inventory that remains in their fulfillment centers for extended periods. As of 2025, these fees apply to items stored for more than 365 days and are calculated as follows:
Fee Structure: $6.90 per cubic foot/month or $0.15 per unit/month, whichever is greater. Source: shipbob.com
Example Calculation:
Consider you have 100 units of a product that have been in storage for over a year, occupying a total of 10 cubic feet.
Cubic Foot Calculation: 10 cubic feet × $6.90 = $69.00Per Unit Calculation: 100 units × $0.15 = $15.00
In this scenario, the long-term storage fee would be $69.00, as it is the greater amount.
These fees are in addition to the standard monthly storage fees and can significantly impact profitability, especially for slow-moving products. Effective inventory management is crucial to minimize these costs. Source: marketplacevalet.com
4. Peak Season Surcharges – Amazon increases fees during high-demand periods, which can further strain profit margins.
Amazon’s Fulfillment by Amazon (FBA) program has historically implemented peak season surcharges during high-demand periods, typically from October to January. These surcharges are applied to fulfillment fees and storage costs to account for increased operational demands.
Fulfillment Fees: During peak seasons, Amazon increases fulfillment fees to manage the heightened demand. For instance, in previous years, standard-size items faced an additional surcharge per unit during the peak period. However, as of January 15, 2025, Amazon announced that peak fulfillment fees would end, and non-peak rates would apply moving forward. Source: sellersnap.io
Storage Fees: Storage fees also see an uptick during peak seasons. For example, from October through December, monthly storage fees for standard-size items have increased from $0.87 to $2.40 per cubic foot in previous years. This significant rise reflects the premium on warehouse space during the holiday rush. Source: goatconsulting.com
Example Calculation: Consider a seller storing 500 standard-size units occupying 50 cubic feet of space during the peak season:
Non-Peak Storage Cost (January – September): 50 cubic feet × $0.87 = $43.50 per monthPeak Storage Cost (October – December): 50 cubic feet × $2.40 = $120.00 per month
In this scenario, the seller would incur an additional $76.50 per month during the peak season due to increased storage fees.
It’s essential for sellers to stay updated on Amazon’s fee announcements, as these charges can significantly impact profitability during peak periods. Planning inventory levels and fulfillment strategies accordingly can help mitigate the financial impact of these surcharges.
5. Removal and Disposal Fees – If a seller wants to remove or dispose of inventory from Amazon warehouses, additional fees are charged per unit, which can add up quickly.
Amazon’s Fulfillment by Amazon (FBA) service offers sellers the option to remove or dispose of inventory stored in its fulfillment centers. These services incur fees that vary based on the size and weight of the items. As of 2025, Amazon charges the following fees for both removal (returning items to the seller) and disposal (destroying or liquidating items):
Standard-Size Items:0 to 0.5 lb: $1.04 per unit0.5+ to 1 lb: $1.50 per unit1+ to 2 lb: $2.15 per unitOver 2 lb: $2.15 + $0.88 per additional lb above 2 lbOversize Items:0 to 1 lb: $2.15 per unit1+ to 2 lb: $3.31 per unit2+ to 3 lb: $4.68 per unitOver 3 lb: $4.68 + $0.88 per additional lb above 3 lb
Example: If a seller needs to remove 100 standard-size units, each weighing 1.5 pounds, the removal fee would be calculated as follows:
Per Unit Fee: $2.15Total Fee: $2.15 x 100 units = $215
It’s important to note that these fees can add up quickly, especially for large quantities or heavier items. Sellers have reported significant charges upon initiating removal orders. Source: sellercentral.amazon.com
6. Returns Processing Fees – While Amazon manages returns, sellers often bear the cost of returns processing, which varies by product category.
As of June 1, 2024, Amazon implemented a returns processing fee for products with high return rates across most categories, excluding apparel and shoes. This fee is calculated based on the product’s monthly return rate, category, size, and weight. The return rate is determined by the percentage of shipped units in a given month that are returned over that month and the subsequent two calendar months. The returns processing fee is charged between the 7th and 15th of the third subsequent month. Source: ecomengine.com
For each return that exceeds the category’s threshold, sellers are charged a per-unit fee ranging from $1.78 to over $157.35, depending on the product’s size and weight. Source: shipbob.com
Example: Consider a board game that falls under a category with a return rate threshold of 4.70%. If the product’s return rate exceeds this threshold, the returns processing fee for this product size tier is $1.84 per returned unit. Source: litcommerce.com
It’s important to note that for products shipping fewer than 25 units in a month, the returns processing fee is not applied for that month. Additionally, for products enrolled in the New Selection Program, Amazon waives the fee for the first 20 returned units that exceed the return rate threshold. Source: sellercentral.amazon.com
7. Referral Fees – Amazon takes a percentage of each sale, typically ranging from 8% to 15%, depending on the product category.
Amazon FBA charges Referral Fees for every item sold on the platform. The referral fee is a percentage of the total sales price (including shipping charges, if applicable) and varies depending on the product category. These fees are separate from fulfillment fees and are charged to the seller when a sale is made.
Referral Fee Structure: The Referral Fee is typically a percentage of the total sales price, but the percentage varies by product category. Below are some common categories and their associated referral fees:
Clothing and Accessories: 17%Consumer Electronics: 8% to 15%, depending on the product’s price.Health & Personal Care: 15%Home & Kitchen: 15%Toys & Games: 15%Books (Physical): 15% (with a minimum fee of $1.00 per unit)Video Games & Consoles: 8% to 15%, depending on price.Jewelry: 20% for prices up to $250, and 5% for prices over $250.Sports & Outdoors: 15%Automotive: 12% to 15%
Minimum Referral Fee:
For some categories, Amazon charges a minimum referral fee, which ensures that the seller still pays a minimum amount regardless of how low the sale price is. For example:
Books: A minimum fee of $1.00 per unit.Video Games: A minimum fee of $0.30 per unit.
Example of Referral Fees:
Let’s say you sell a product in the Home & Kitchen category with a sale price of $50.00:
Referral Fee: 15% of $50.00 = $7.50.
If you sell a book priced at $12.00:
Referral Fee: 15% of $12.00 = $1.80 (but if the minimum fee is higher, it would be $1.00).
For a consumer electronics product priced at $200.00:
Referral Fee: 8% of $200.00 = $16.00.
8. Account-Related Fees – Professional selling plans, advertising costs, and other promotional expenses add to the overall cost structure.
Amazon FBA charges several account-related fees to sellers, depending on the type of account they have and the services they use. Here’s a breakdown of the typical account-related fees you might encounter as an Amazon seller:
Amazon Seller Account Subscription Fees
Individual Seller Account: $0.99 per item sold.This is the fee for individual sellers who don’t have a professional account. There is no monthly subscription fee, but they pay $0.99 per sale made.Professional Seller Account: $39.99 per month (regardless of the number of items sold).This is for businesses or higher-volume sellers who want more features and don’t mind paying a monthly fee. Professional sellers also have access to Amazon’s advertising options, advanced analytics, and can list in more categories.
Amazon Payment Processing Fees
Amazon charges payment processing fees for each sale made on the platform. These fees are generally taken out of the proceeds before funds are disbursed to the seller.The fee is typically 2.9% + $0.30 per transaction for most U.S. sales.If the sale is made in a different currency or region, Amazon adjusts the processing fees accordingly.
Amazon FBA Inventory Removal Fees
When sellers want to remove their unsold inventory from Amazon’s fulfillment centers, there’s a fee for removing products:Removal Fee: $0.15 per unit for standard-size items, $0.30 per unit for oversized items.This fee covers the cost of retrieving and returning the item to you (if it’s sent back to you) or discarding it.
Long-Term Storage Fees
Amazon charges long-term storage fees for inventory that has been in a fulfillment center for more than 365 days (one year).These fees are charged twice a year (in February and August) and are calculated based on the amount of space your inventory takes up.Standard-size items: $6.90 per cubic foot.Oversized items: $0.15 per unit per month or $3.45 per cubic foot (for long-term storage).
Refund Administration Fee
If a customer returns a product and Amazon issues a refund, sellers typically pay a refund administration fee.Refund Administration Fee: $5.00 or 20% of the refunded amount (whichever is less).This is deducted from your Amazon account when the return is processed.
High-Volume Listing Fee
For sellers with large numbers of listings, Amazon may charge a high-volume listing fee if the seller has over 100,000 active listings in Amazon’s catalog.Fee: This is typically charged on a per-listing basis and varies by region.This fee applies to sellers who maintain many listings but don’t have significant sales to match the listings.
Amazon Advertising Fees (Optional)
While not required for all sellers, many opt into Amazon’s advertising services to help promote their products, which incurs additional costs.Sponsored Products: Advertisers pay based on a pay-per-click (PPC) model. Costs typically range from $0.10 to $2.00 per click, depending on the keywords and competition.
Account Maintenance Fees (for inactive accounts)
If your seller account becomes inactive (i.e., no sales or listings) for a period of time, Amazon may charge an account maintenance fee to keep your account open and active.
Fee: It can be up to $10 per month if an account is inactive for more than 90 days.
