Amazon Selling Fees for 2023: How to Continue Making a Profit

What Fees Do I Have to Pay to Sell on Amazon?

Amazon sellers must pay various fees in order to sell on the platform. Some of the most common fees are:

1. Selling fees: This fee is based on the item’s sale price and is charged per item sold. For most categories, the fee is a percentage of the sale price, with a minimum fee.
2. Referral fees: This is a fee charged by Amazon on top of the selling fee. The referral fee is a percentage of the item’s sale price and varies based on the category in which the item is sold.
3. Fulfillment by Amazon (FBA) fees: If a seller uses Amazon’s fulfillment service, they will incur additional fees for storage, pick, pack, and shipping services. These fees vary based on the size and weight of the item and the time of year.
4. Subscription fees: If a seller wants to take advantage of additional services such as access to Amazon’s Buy Box, they may need to subscribe to one of Amazon’s selling plans, which come with a monthly or annual fee.
5. Advertising fees: If a seller wants to promote their products through Amazon’s advertising platform, they will incur additional fees. These fees are based on the cost-per-click model, where the seller pays every time someone clicks on their ad.
6. Returns processing fee: If a seller uses FBA, they may incur a fee for processing returns, depending on the item’s category and size.
7. Long-term storage fees: If a seller uses FBA and their inventory remains in Amazon’s fulfillment centers for over 365 days, they will incur long-term storage fees.

It’s important to note that these fees are subject to change and vary based on the seller’s location and the type of items they sell. It’s always a good idea for sellers to review Amazon’s fee structure and check for updates on a regular basis.

Further Reading: 10 Hidden Fees on Amazon

When Do Amazon Seller Fees Increase?

Starting on January 17, 2023, FBA fulfillment fee changes will be taking effect. FBA fulfillment fees are calculated and charged when shipments leave Amazon fulfillment centers. This means that if a product is shipped on or after January 17th, the new FBA fulfillment fees will apply.

But you won’t see that impact until your next payout. Every 14 days, Amazon takes a cut from your payout and can hold funds from each sale up to seven days after a product is received. In theory, there can be an additional three to five days for you to get those funds in your bank account.

1. FBA Outbound Fee

The FBA outbound fee rates will be increasing by $0.22 on average. This is being added alongside more granular weight tiers for FBA outbound fees to match current shipping costs.

Taking effect on February 16, 2023, Apparel products will now use the greater unit weight or dimensional weight to calculate the shipping weight for all category large standard-sized products.

3. Increase in Storage Fees

Off Peak and Peak Storage Fees

Amazon will be increasing monthly off-peak and peak storage fees for standard-sized products.

• Off Peak (January – September): increase of $0.04 per cubic foot
• Peak (October – December): increase of $0.20 per cubic foot for non-sortable network

New Storage Utilization Surcharge

On April 1, 2023, there will also be a new storage utilization surcharge will be added for sellers who have a high cube of inventory stored in fulfillment centers relative to the cube of recent weekly sales. This will impact around 8% of sellers with the highest volume of storage relative to sales volume.

New Aged Inventory Surcharges

There will be an increase in surcharges applied to inventory that is stored between 271-365 days AND starting on April 15, 2023 there will be a new surcharge will be introduced, the aged inventory surcharge. This will happen with inventory stored between 180-270 days, excluding products categories such as Apparel, Shoes, Bags, Jewelry, and Watches.

Reduced Fees in Amazon in 2023

Amazon has removed the  Fuel & Inflation Surcharge, and has also lowered fees in the following programs:

• U.S. FBA New Selection Program will get an increased rebate on sales for eligible new-to-FBA parent ASINs.
• Small and Light Program will have reduced fees as this program is expanding.

How Does Feedvisor Help Sellers Mitigate Profit Lose From Fees?

As an FBA seller on Amazon, there is not much you can do about FBA fulfillment fees increasing, but you can optimize your strategy around the categories, sizes, and success of the items you are selling to improve profitability.

Feedvisor’s proprietary AI solution helps sellers mitigate profit loss from fees by constantly incorporating fees into the profitability analysis of their products on their dashboard. This allows sellers to see clearly the impact of fees on their profitability and which items are affected. 

We make it easy to identify your high-performing listings, underperforming listings, and unprofitable items. If you have unprofitable items with an FBA fulfillment fee that is increasing, it may be time to liquidate your stock for that item as soon as you can so as not to deplete your resources, pay hefty fees, and ultimately prevent your full growth potential.

Whether or not you have a third-party solution that makes it easy to quickly look at SKU performance, an increase in fees is always a sign to review your current strategies to be sure you are optimizing your product investment strategy on Amazon and across e-marketplaces.