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Updated to reflect the most recent 2024 changes
Referral Fee
Amazon takes a referral fee for the role it plays in facilitating the sales relationship between buyer and seller by deducting a percentage of the total payment to the seller. The referral fee is applied to every item as well as extras (such as gift wrap) and includes a variable closing fee, but excludes sales tax.
Purchase Price
The purchase price of each item that is charged to the buyer, therefore, has several components:
- Item price
- Shipping charges (paid by the buyer)
- Gift wrap charges – if applicable (paid by the buyer)
- Referral fee (designated percentage of the item price and any gift wrap charges)
- Variable closing fee
- $0.99 per item fee for those sellers who do not pay a subscription fee
Amazon’s cut (a finder’s fee) is the referral ree combined together with the variable closing fee and the item surcharge where applicable.
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Referral Fee Percentages
This table lists the different referral fee percentages by Amazon category (alphabetical order):
| Product Category | Referral Fee Percentage |
|---|---|
| Amazon Device Accessories | 45% |
| Appliances – Compact | 15% for portion of total sales price up to $300, and 8% for any portion of total sales greater than $300 |
| Appliances – Full-size | 8% |
| Automotive and Powersports | 12% |
| Base Equipment Power Tools | 12% |
| Baby Products | 8% for products with a total sales price of $10.00 or less, and
15% for products with a total sales price greater than $10.00 |
| Backpacks, Handbags, and Luggage | 15% |
| Beauty, Health, and Personal Care | 8% for products with a total sales price of $10.00 or less, and
15% for items with a total sales price greater than $10.00 |
| Business, Industrial, and Scientific Supplies | 12% |
| Clothing and Accessories | 17% |
| Computers | 8% |
| Consumer Electronics* | 8% |
| Electronics Accessories ** | 15% for the portion of the total sales price up to $100.00, and
8% for any portion greater than $100 |
| Eyewear | 15% |
| Fine Art | 20% for the portion of Sales Proceeds up to $100 (with a minimum Referral Fee of $1.00);
15% for any portion of Sales Proceeds greater than $100 up to $1,000; 10% for any portion of Sales Proceeds greater than $1,000 up to $5,000; and 5% for any portion of Sales Proceeds greater than $5,000 |
| Footwear | 15% |
| Furniture | 15% for portion of total sales price up to $200 and 10% for any portion greater than $200 |
| Gift Cards | 20% |
| Grocery and Gourmet | 8% for products with a total sales price of $15 or less and 15% for products with total sales price greater than $15 |
| Home and Kitchen | 15% |
| Jewelry | 20% for the portion of total sales price up to $250 and 5% for portion greater than $250 |
| Lawn and Garden | 15% |
| Lawn Mowers and Snow Throwers | 15% for products with a total sales price of up to $500 and 8% for products with a total sales price greater than $500 |
| Media – Books, DVD, Music, Software, Video | 15% |
| Musical Instruments and AV Production | 15% |
| Office Products | 15% |
| Pet Supplies | 15%, except 22% for veterinary diets |
| Sports and Outdoors | 15% |
| Tires | 10% |
| Tools and Home Improvement | 15% |
| Toys and Games | 15% |
| Video Games and Gaming Accessories | 15% |
| Video Game Consoles | 8% |
| Watches | 16% for the portion of total sales price up to $1,5000 and 3% for any portion greater than $1,5000 |
| Everything Else *** | 15% |
How to Pay Amazon
Amazon pays sellers for their items that were purchased through the website every 14 days. Before transferring funds to the sellers’ bank accounts, Amazon deducts the appropriate referral fees from the sum total. Sellers do not need to worry about paying Amazon the referral fees in independent payments.
Outsmart Amazon’s Storage Fees
Discover the Top Inventory Strategies for Combating Amazon’s Storage Fees With Our Inventory Tactics Guide2024 Amazon Referral Fee Changes
Referral fees will remain largely unchanged for 2024, but for apparel: under $15, fees drop from 17% to 5%, and $15-$20 items see a reduction from 17% to 10% starting January 15, 2024.
Other Amazon Seller Fee Updates
Dangerous Goods and Other Fulfillment Fees
If your products are classified as dangerous goods or have been stored in an Amazon fulfillment center for more than 271 days, you will be subject to additional inventory storage fees. Additionally, if you have a high volume of inventory stored relative to the volume of your recent weekly sales, you may be charged a storage utilization surcharge.
Storage Fees
Below are the changes to Fulfillment by Amazon storage fees for that went into effect in 2024:
- As mentioned above, separately monthly inventory storage fees were introduced for dangerous items.
- The low-inventory-level fee is applicable for standard-sized products and implemented for consistently low inventory levels, starting April 1, 2024.
- The returns process fee previously applied ONLY to customer-returned products in the Apparel and Shoes categories. A new returns processing fee will apply to high-return-rate products in all categories (excluding apparel and shoes) starting June 1, 2024.
- For the aged inventory surcharge fee, new fee tiers will begin on inventory aged 181 to 270 days for ALL products except items listed under clothing, shoes, bags, jewelry, and watches in the US. Amazon will continue to charge an aged inventory surcharge for units stored longer than 365 days.
Ships in Product Packaging (SIPP) Proram
Amazon’s Ships in Product Packaging (SIPP) program is expanding to include hundreds of thousands of Fulfillment by Amazon (FBA) sellers in the U.S. and Canada. The initiative, which started as a pilot program in 2023, aims to reduce packaging waste by allowing more items to be shipped without Amazon-branded packaging. This move aligns with Amazon’s broader sustainability efforts, such as phasing out plastic mailers and using fiber-only packaging.
Participating sellers will benefit from discounts ranging from 4 cents to $1.32 per unit, depending on the size and type of packaging avoided. The program is designed to incentivize sellers while enhancing customer experience and sustainability. Eligibility criteria for SIPP include product size, weight, and sensitivity, with Amazon conducting rigorous testing to ensure products meet the program’s standards.