The fee stack at a glance
Amazon FBA costs are not one charge. A realistic product calculation normally includes the selling plan, referral fee, fulfilment, storage, returns, advertising, purchase cost, inbound delivery, preparation, VAT and any import or inventory charges. Amazon says selling costs depend on the plan, product category, fulfilment strategy and other variables.[1]
Selling plans
Amazon's UK pricing page currently lists an Individual plan at £0.75 per item sold and a Professional plan at £25 excluding VAT per month.[1] The better choice depends on sales volume and the features or categories you need. Compare the plan charge with the rest of the cost stack rather than choosing only from the headline price.
Referral fees
Amazon charges a referral fee on each item sold. The rate depends on the category, and Amazon says most referral fees are between 8% and 15%.[1] Check the exact category rate, minimum fee and any price bands that apply to the listing. Referral fees are not safely estimated with one universal percentage.
FBA fulfilment fees
FBA fulfilment charges depend on the product's packaged size, weight, category and fulfilment route.[1] Measure the product after packaging and check the current rate card. Confirm whether the product is standard-size, oversize, dangerous goods, battery-powered or eligible for another rate.
Storage fees
Amazon charges storage separately and bases it on the space inventory occupies in its fulfilment centres.[1] Storage is affected by packaged dimensions, quantity, seasonality, category and how long the stock remains unsold. Slow-moving inventory can create both direct storage costs and indirect cashflow pressure.
Low-Price FBA and changing rates
Eligible lower-priced products can receive reduced Low-Price FBA rates when they meet the applicable price, size, weight and category conditions.[4] Eligibility is not automatic for every product under the headline price threshold. Amazon also changes fee schedules and can apply surcharges, so use current product-specific information before buying.
Returns, advertising and inventory outcomes
Allow for refunds, customer returns, damaged or incomplete units, removal, disposal and stock that cannot be resold as new. Advertising and promotions are optional for many sellers but can become part of the cost of a sale. Amazon describes customer service, returns and refunds as part of the FBA service, but the seller still needs to account for their effect on margin.[2]
VAT and imported stock
VAT treatment depends on the seller, transaction, product and stock location. GOV.UK currently gives a £90,000 taxable-turnover threshold for UK-established businesses, with additional rules for overseas and cross-border sellers.[5][11] If goods cross a border, an EORI number and customs costs may be relevant.[6][7] Keep the VAT assumption visible and do not mix VAT-inclusive and net figures in the same calculation.
A simple calculation method
Start with revenue, then subtract referral fees, fulfilment, storage, returns, advertising, product cost, inbound delivery, preparation, VAT treatment and other relevant costs. Use the SellerProfitGuide FBA profit calculator as a screening aid, then reconcile the assumptions to Amazon data and actual invoices.
Before you buy
Check the exact category fee, packaged dimensions, shipping weight, fulfilment method, selling plan, VAT treatment, return allowance, advertising allowance and likely sell-through. A product that works only at an optimistic sale price or with no storage and return allowance has a fragile margin.