Amazon FBA Fees – A Complete Guide for 2025
Table of Contents
- What are Amazon FBA fees?
- Types of Amazon FBA fees
- Amazon FBA fees at a glance: Example costs across major marketplaces
- Amazon FBA fee parameters compared: US, UK, India & Australia
- Amazon FBA fee updates for 2025
- How to calculate Amazon FBA fees (across regions)
- How to balance FBA Fees for maximum profitability?
- Strategies to reduce & optimize FBA fees
- Frequently Asked Questions (FAQs)
Amazon FBA fees cover fulfillment, storage, and service costs when Amazon handles your products. They include charges for shipping, customer service, returns, and optional prep services. Understanding these fees helps sellers protect margins and price products strategically.
What are Amazon FBA fees?
Selling on Amazon is easier with Fulfillment by Amazon (FBA). Amazon takes care of storage, packaging, shipping, and customer service so sellers can focus on scaling their business. But this convenience comes at a price: FBA fees.
Amazon FBA fees are the charges sellers pay when Amazon stores, picks, packs, ships, and handles returns for their products through the FBA program.
These fees directly affect your profit margins. For some sellers, they may feel like a cost burden; for others, they are a worthwhile trade-off for saving time, effort, and logistics headaches. The key isn’t avoiding FBA, it’s understanding the fees clearly and managing them smartly.
Types of Amazon FBA fees
There are many different FBA fees Amazon may charge depending on the category, size, weight, and country of sale. Some are occasional or category-specific, while others apply to most sellers consistently. In this guide, we’ll focus on the recurring and most impactful fees that sellers encounter regularly and need to monitor closely for profitability.
1. Fulfillment fees
- Charged per unit for picking, packing, and shipping.
- Vary by size tier (standard-size, oversize) and weight. Example : In the US: apparel vs non-apparel categories are charged differently. In the UK: oversize items may incur Pan-European surcharges.
2. Monthly storage fees
- Charged per cubic foot (or per cubic meter in some regions).
- Higher during peak season (Oct–Dec).
Example (UK): Jan–Sep: £0.52–£0.66/ft³, Oct–Dec: £0.66–£1.21/ft³
3. Aged inventory surcharge (long-term storage)
- Applied if inventory sits too long (typically 241+ days).
Example (UK): £1.18–£5.71 per cubic foot after 365 days. - In India and US, surcharges apply after 271 days.
4. Referral fees
- A percentage of the sale price, varying by category.
Example: Electronics (8–15%), Books (15%), Apparel (17%). - Minimum fee applies per unit (e.g., £0.25 in the UK).
5. Returns processing fees
- Charged if Amazon offers free returns to customers.
- Especially common in apparel categories.
6. Removal & Disposal fees
- Charged per unit when sellers ask Amazon to return or dispose of inventory.
- Useful for aged stock (to avoid long-term storage surcharges).
- Fees vary by size/weight (standard vs oversize).
- Tip:
1. Plan removals before Q4, when storage fees peak.2. For low-cost products with very low COGS, avoid creating removal orders. The removal and transportation fees can exceed the product’s value, leaving you with losses. Instead, consider alternatives like:
Running clearance sales or price drops to move stock faster.
Using Amazon’s FBA Liquidations program.
Donating inventory (sometimes tax-deductible).
Bundling low-cost items with higher-margin products.
7. Unplanned service fees
- Applied when inventory arrives at fulfillment centers without correct labels, packaging, or prep.
- Examples: Missing barcodes, wrong carton labels, damaged packaging.
- Can disrupt inventory processing → delays product availability.
- Fees are per unit, and higher than doing prep yourself.
- Pro tip: Use FBA prep guidelines or third-party prep centers to avoid penalties.
8. Labeling & Prep fees
- Labeling and prep fees are optional charges if Amazon prepares or labels inventory for you.
- Amazon can apply barcodes (FNSKU), bubble wrap, or polybags if sellers don’t.
- Charged per unit (higher for oversize or fragile items).
- Prep services cover: bagging, taping, bubble wrapping, opaque bagging (for adult products), etc.
- Sellers can save by prepping inventory themselves before shipping.
9. Special handling fees
- Extra costs for hazardous materials (hazmat), fragile goods, or lithium battery products.
- Includes storage surcharges for hazmat due to safety requirements.
- Affects sellers in categories like electronics, cosmetics, aerosols, and chemicals.
- Fees vary depending on risk class and require Amazon approval (FBA Dangerous Goods Program).
- Pro tip: Factor these costs before pricing; hazmat items often need higher margins.
10. Regional specific charges
- UK: Pan-EU surcharges, utilisation fees.
- Australia: GST (10%) for sellers earning over AUD 75,000.
- India: Local GST and referral fees vary by product type.
Amazon FBA fees at a glance: Example costs across major marketplaces
Fee Type | When Charged | Example Cost (US) | Example Cost (UK) | Example Cost (India) | Example Cost (Australia) |
Fulfillment Fees | Per unit, pick & pack | $3.22 (std. apparel) | £2.21 (std. small) | ₹32–₹60+ | AUD $2.90–$5.50 |
Monthly Storage Fees | Per cubic ft/m | $0.87 (Jan–Sep), $2.40 (Oct–Dec) | £0.52–£1.21 | ₹27–₹55/cu.ft | AUD $19–$23/cu.m |
Aged Inventory Surcharge | After 241–271 days | $1.50+/cu.ft | £1.18–£5.71 | ₹50+/cu.ft | AUD $170/CBM annually |
Referral Fees | % of selling price | 8–17% | 7–45% | 5–20% | 9–12% |
Returns Processing | For free customer returns | Yes (apparel, shoes) | Yes (clothing) | Yes | Yes |
Removal & Disposal | Per unit | $0.50–$1.50 | £0.25–£0.60 | ₹10–₹30 | AUD $0.20–$0.60 |
Labeling / Prep Service | Per unit | $0.20–$0.30 | £0.15–£0.35 | ₹5–₹20 | AUD $0.25–$0.40 |
Special Handling | Batteries, hazmat | Varies | Varies | Varies | Varies |
The fee data in this table is compiled from Amazon’s official Seller Central resources:
Amazon FBA fee parameters compared: US, UK, India & Australia
Amazon FBA fees aren’t the same everywhere — they vary by region, category, and even season. Below is a side-by-side comparison of the core parameters sellers pay for (fulfillment, storage, referral, and other charges) across the US, UK, India, and Australia in 2025.
Parameter | United States & India | United Kingdom | Australia |
Fulfillment Fees | Size and weight based, separate brackets for apparel vs non-apparel | Based on size/weight tiers. oversize products may attract Pan-EU surcharges | Size and weight based, fewer tiers compared to US/UK |
Storage Fees | Monthly storage varies, peak Oct–Dec higherAged inventory surcharge starts at 271 days | Seasonal storage (higher Oct–Dec), Aged inventory surcharge after 241 days | Monthly storage by cubic meter Annual long-term charge after 365 days |
Referral Fees | 8–20% depending on category | 7–45% depending on category | Approximately 9–12% depending on category |
Special / Other Charges | Returns processing fees (esp. apparel), Unplanned service fees Labeling & prep services | Return processing fees (clothing, expanding to more categories) Prep services, optional Utilisation surcharge (2025) | 10% GST for sellers with revenue > AUD 75,000, Disposal/removal fees |
Amazon FBA fee updates for 2025
Amazon has introduced several important changes to its FBA fee structure in 2025. Below is a breakdown of the key updates by region:
Note: These are the confirmed updates as of early 2025. Amazon may release additional adjustments throughout the year. To stay completely up to date, always check Amazon Seller Central.
How to calculate Amazon FBA fees (across regions)
The calculation process is the same everywhere:
- Find your product’s size & weight tier.
- Apply the referral fee % for your category.
- Add the fulfillment fee for that tier.
- Include storage fees (monthly or aged).
- Add any extra charges (returns, prep, labeling, special handling).
- Adjust for regional differences (e.g., GST in India & AU, Pan-EU surcharges in UK).
Example: Selling a $25 T-shirt (Standard-Size, Apparel)
Fee Component | United States | United Kingdom | India | Australia |
Referral Fee | 17% of $25 = $4.25 | 17% of £25 = £4.25 | 15% of ₹2,000 = ₹300 | 15% of AUD $25 = AUD $3.75 |
Fulfillment Fee | Std-size apparel = $3.22 | Std-size = £2.10 | Std-size apparel = ₹95 | Std-size = AUD $3.00 |
Storage Fee (Monthly Avg) | $0.60 | £0.50 | ₹20 | AUD $0.70 |
Other Charges | – | Pan-EU surcharge (varies) | +18% GST on fees ≈ ₹32 | +10% GST on fees ≈ AUD $0.75 |
Total FBA Fees | $8.07 | £6.85+ | ₹447 | AUD $8.20 |
Net Revenue | $25 – $8.07 = $16.93 | £25 – £6.85 = £18.15 | ₹2,000 – ₹447 = ₹1,553 | AUD $25 – $8.20 = AUD $16.80 |
Profit | $16.93-10 =$6.93 | £18.15 – £10 = £8.15 | ₹1553 – ₹683 = ₹870 | AUD $16.80 -$10 =AUD $6.80 |
How to balance FBA Fees for maximum profitability?
Example: A $25 product fulfilled through FBA may have $8–$10 in combined fees (fulfillment + referral + storage). That doesn’t mean FBA reduces profitability, it means sellers need to factor these charges into their pricing strategy.
Many sellers overlook hidden costs like returns processing or prep services, which can skew profit calculations.
The key isn’t avoiding FBA, it’s tracking all costs accurately. With tools like KwickMetrics Profit Analytics, you can see your true profit after every fee and make informed decisions on pricing, inventory, and campaigns.
Strategies to reduce & optimize FBA fees
- Optimize packaging: Avoid oversize classification.
- Improve inventory forecasting: Reduce aged inventory surcharges.
- Audit returns & removals: Avoid unnecessary charges.
- Bundle products smartly: Reduce per-unit costs.
- Use analytics tools (KwickMetrics): Track every fee and optimize pricing.
FBA is powerful, but the fees are complex, and increasingly region-specific. Sellers who fail to track them risk losing profits. By staying updated with 2025 fee changes, planning inventory wisely, and using tools like KwickMetrics, you can turn FBA fees into manageable costs instead of profit killers.
Try KwickMetrics today and see your real profit after every fee, across every Amazon marketplace.
Frequently Asked Questions (FAQs)
FBA fees may change annually, as Amazon often reviews and updates them in Q1. However, adjustments depend on Amazon’s business policies, operational costs, and marketplace developments, so changes aren’t mandatory every single year. Mid-year updates can also happen when Amazon introduces new fee structures or programs.
FBA fees vary by marketplace and product category.
- In the UK, referral fees can go as high as 45% in some categories, and aged inventory surcharges are among the steepest globally (Amazon UK Fee Schedule).
- In the US, apparel sellers face higher fulfillment fees compared to non-apparel categories (Amazon US 2025 Fee Update).
Overall, the UK tends to have higher referral and long-term storage costs, while the US has heavier category-based fees (especially apparel).
Yes, you can estimate FBA fees using Amazon’s official FBA Fee Calculator or third-party tools like KwickMetrics. These tools give you a reliable range of expected costs based on product size, weight, and category.
However, the exact amount may vary once Amazon measures your product at the fulfillment center, or if additional charges (like storage surcharges or returns) apply.
Regularly review inventory age reports, discount slow movers, and remove items before surcharges apply.
Yes. For example, the UK has Pan-EU surcharges, while Australia applies GST on sales.
Monitor inventory age, remove unsold stock before surcharges, and optimize demand planning.