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Amazon FBA & Marketplace Prep

Amazon FBA Fees: Types and How to Model Them

The structure of Amazon FBA fees, a per-unit cost model and ways sellers lose margin.

Amazon FBA Fees: Types and How to Model Them

Key takeaways

  • FBA fees: referral, fulfillment, storage and conditional charges.
  • Check current rates in Seller Central; they change.
  • Model cost per unit including prep and storage.
  • Size tiers and slow stock cost the most margin.
On this page

Amazon FBA fees are made of several parts: a selling fee, a fulfillment fee, storage fees and a set of conditional charges. Rates change over time, so this guide explains the structure and how to build a cost model, and points to Amazon’s current fee schedule in Seller Central for the figures.

The main fee types

Fee What it covers Depends on
Referral fee Selling on Amazon Category and price
FBA fulfillment fee Pick, pack, ship and customer service Size and weight
Storage fees Holding inventory Volume, time of year and age of stock
Inbound and prep charges Receiving and compliance work Your inbound setup
Other charges Returns, removals, surcharges Case by case
Selling feeFBA fulfillment feeStorage feesConditional chargesCost per unit
FBA cost per unit is built from several fees

Build a cost model per unit

  1. PriceSelling price.
  2. Minus Amazon feesReferral and fulfillment.
  3. Minus storageEstimated days in stock.
  4. Minus prep and inboundLabels, packing, shipping to Amazon.
  5. Minus product costWhat remains is profit.

Where sellers lose margin

  • Slow-moving stock that attracts higher storage charges.
  • Products that exceed a size or weight tier by a small margin.
  • Prep mistakes that lead to rejected or relabeled shipments.
  • Returns that come back unsellable.

Ways to reduce cost

  • Check packaging dimensions against fee tiers before you ship.
  • Send smaller, more frequent shipments for slow sellers.
  • Prepare units correctly the first time. See FBA prep vs. 3PL.
  • Keep part of the stock outside Amazon for other channels.

Our Amazon FBA prep services cover labeling, bagging and inbound shipping so units arrive compliant. For comparing fulfillment options overall, see how much fulfillment costs.

An illustrative per-unit model

The numbers below are an example only, to show the structure. Replace them with your own from Seller Central.

Line Example
Selling price $30.00
Referral fee -$4.50
FBA fulfillment fee -$5.00
Storage per unit -$0.30
Prep and inbound shipping -$1.20
Product cost -$9.00
Profit per unit $10.00

Repeat the model for each size tier and your slowest sellers, where storage and aged inventory charges have the largest effect.

Check the official fee schedule

Amazon changes fees and size tiers over time. Always confirm the current figures in the fee schedule in your Seller Central account before pricing.

FBA fees and prep: where a 3PL fits

FBA fees apply once your stock is inside Amazon’s network. Before that, goods must arrive at Amazon’s warehouses labeled, packed and in the right form. Many sellers use a prep center for this step: stock is received, checked, labeled and shipped to Amazon in the required format. Prep errors cause fees, delays and rejected shipments, so they belong in the cost model as well. Read more about Amazon FBA prep services and about choosing between FBA prep and a 3PL.

A checklist to cut FBA costs

  1. Check the size and weight tier of every product, and see whether packaging changes would move it to a lower tier.
  2. Keep stock levels in line with sales so storage fees do not build up.
  3. Remove or liquidate slow stock before long-term storage charges apply.
  4. Prepare inventory correctly to avoid prep and labeling fees.
  5. Review the fee schedule when Amazon publishes updates, and rerun your model.

FBA vs. fulfilling orders yourself or with a 3PL

FBA offers access to Amazon’s customers and delivery promise, but you pay for it in fees and give up control of packaging and branding. A 3PL fulfills orders from your own stock for any channel, including your own store. Many sellers use both: FBA for Amazon orders and a 3PL for the website and other marketplaces. Compare the total cost per order on each route using the same product and the same order profile, as shown in our fulfillment costs guide.

Frequently asked questions

What fees does Amazon FBA charge?

Referral, fulfillment, storage and conditional charges such as returns or removals.

Where do I find current FBA rates?

In the fee schedule in Amazon Seller Central, which Amazon updates over time.

What drives the FBA fulfillment fee?

The product’s size and weight tier.

How can I reduce FBA storage costs?

Send smaller lots, remove slow stock and avoid long holding periods.

Does prep add to cost?

Yes, but correct prep avoids rejected shipments and relabeling.

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Anton Kashirin
Written by

Anton Kashirin

Anton founded EcomAutomation, the company behind EcomAutoPrep. He works with Amazon FBA sellers and DTC brands on receiving, prep, kitting and shipping, and reviews the guides on this blog against how orders move through the warehouse.

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