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Amazon Announces 2019 U.S. Referral and FBA Fee Changes

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 CategoryReferral Fee Percentage
Amazon Device Accessories45%
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-size8%
Automotive and Powersports12%
Base Equipment Power Tools12%
Baby Products8% 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 Luggage15%
Beauty, Health, and Personal Care8% 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 Supplies12%
Clothing and Accessories17%
Computers8%
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

Eyewear15%
Fine Art20% 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

Footwear15%
Furniture15% for portion of total sales price up to $200 and 10% for any portion greater than $200
Gift Cards20%
Grocery and Gourmet8% for products with a total sales price of $15 or less and 15% for products with total sales price greater than $15
Home and Kitchen15%
Jewelry20% for the portion of total sales price up to $250 and 5% for portion greater than $250
Lawn and Garden15%
Lawn Mowers and Snow Throwers15% 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, Video15%
Musical Instruments and AV Production15%
Office Products15%
Pet Supplies15%, except 22% for veterinary diets
Sports and Outdoors15%
Tires10%
Tools and Home Improvement15%
Toys and Games15%
Video Games and Gaming Accessories15%
Video Game Consoles8%
Watches16% 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.

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2024 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.

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