Amazon fees eat into your margin at multiple layers, and sellers who do not understand the full fee structure often make pricing and product decisions that destroy profitability. This guide breaks down every fee you will encounter as an Amazon UK seller in 2026 — referral fees, FBA fulfilment fees, storage fees, returns, aged inventory surcharges, and how they interact to determine your real net margin.
Referral Fees
Amazon’s cut of every sale
FBA Fees
Pick, pack & ship costs
Storage Fees
Monthly & long-term holding
Returns
Processing & refund fees
Subscription
Professional selling plan
Other Fees
Removal, disposal, inbound
1. Selling Plan Fee
Before any product-specific fees, you pay for your selling account:
| Plan | Cost | Best for |
|---|---|---|
| Individual | £0.75 per item sold | Fewer than 35 sales/month |
| Professional | £25/month + VAT | Anyone selling more than 35 items/month |
The Professional plan unlocks advertising (Sponsored Products, Brands, Display), A+ Content, bulk uploads, advanced reports, and the Buy Box. If you are serious about growing on Amazon, the Professional plan is non-negotiable.
2. Referral Fees
Amazon charges a referral fee on every sale — a percentage of the total selling price including VAT. Referral fees vary by category and are Amazon’s primary revenue source from third-party sellers.
| Category | Referral Fee | Minimum |
|---|---|---|
| Amazon Devices & Accessories | 45% | £0.30 |
| Gift Cards | 20% | £0.30 |
| Books | 15% | £0.30 |
| Health & Beauty (most products) | 8% | £0.30 |
| Clothing & Accessories | 17% | £0.30 |
| Electronics (consumer) | 8% | £0.30 |
| Garden & Outdoors | 15% | £0.30 |
| Home & Kitchen | 15% | £0.30 |
| Sports & Outdoors | 15% | £0.30 |
| Toys & Games | 15% | £0.30 |
| Pet Supplies | 15% | £0.30 |
| Grocery & Gourmet | 8% (≤£10) / 15% (>£10) | £0.30 |
| Jewellery | 20% (first £250) / 5% (above) | £0.30 |
| Shoes | 15% | £0.30 |
Amazon calculates the referral fee on your selling price including VAT. If you sell a product for £30 (inc. VAT at 20%), Amazon charges 15% on £30 = £4.50, not on the ex-VAT price of £25. Factor this into your pricing from the start.
3. FBA Fulfilment Fees (UK, 2026)
FBA fulfilment fees cover pick, pack, and ship. They are charged per unit and depend on the product’s size tier and weight. Amazon classifies products into size bands:
| Size Tier | Max Dimensions | Max Weight | Fee Range |
|---|---|---|---|
| Small envelope | 33 × 23 × 2.5 cm | 400g | £1.90 – £2.15 |
| Standard envelope | 33 × 23 × 2.5 cm | 1kg | £2.25 – £2.55 |
| Large envelope | 33 × 23 × 4 cm | 1kg | £2.55 – £3.15 |
| Small parcel | 45 × 34 × 26 cm | 2kg | £2.70 – £3.95 |
| Standard parcel | 45 × 34 × 26 cm | 12kg | £3.95 – £5.85 |
| Large parcel | 61 × 46 × 46 cm | 30kg | £5.85 – £10.70 |
| Special oversize | Up to 175 × 100 × 100 cm | Up to 150kg | £10.70+ |
For bulky but light items, Amazon uses dimensional weight (length × width × height ÷ 5,000) if it is greater than the actual weight. A lightweight product in a large box can incur the same fee as a much heavier item. Packaging optimisation directly reduces FBA fees.
4. Monthly Inventory Storage Fees
Amazon charges monthly storage fees per cubic metre for inventory held in FBA warehouses. Storage fees increase significantly in Q4 (October–December) to encourage sellers to clear stock before the holiday peak:
| Month | Standard Size (per m³) | Oversize (per m³) |
|---|---|---|
| January – September | £22.50 | £19.60 |
| October – December | £40.80 | £33.60 |
5. Aged Inventory Surcharge
Inventory that has been in an FBA warehouse for more than 181 days incurs an aged inventory surcharge on top of the regular monthly storage fee. This is one of the most commonly underestimated fees and can make slow-moving SKUs severely unprofitable:
| Days in warehouse | Surcharge (per unit) |
|---|---|
| 181 – 270 days | £0.50/unit |
| 271 – 365 days | £1.00/unit |
| 365+ days | £1.50/unit |
Amazon assesses aged inventory on the 15th of each month. Use the Inventory Age report in Seller Central to identify slow movers and run promotions, lower prices, or initiate removal orders before the 181-day threshold.
6. Returns Processing Fee
For most product categories, Amazon refunds the referral fee when a buyer returns a product, but charges a returns processing fee for categories with high return rates:
- For Clothing, Shoes, and Accessories, the returns processing fee equals the referral fee — meaning you pay the referral fee twice (once on sale, again on return).
- For all other categories, Amazon typically refunds 80% of the referral fee on return (retaining 20% as a restocking fee).
- FBA fulfilment fees are not refunded on returns in most cases.
7. Removal and Disposal Fees
If you want to remove inventory from FBA warehouses (to send back to your warehouse or dispose of unsellable stock), Amazon charges per-unit removal fees:
| Size | Return to Seller | Disposal |
|---|---|---|
| Small/Standard envelope | £0.55 – £0.70 | £0.25 – £0.35 |
| Small/Standard parcel | £0.90 – £1.45 | £0.45 – £0.70 |
| Large parcel | £2.80 – £4.10 | £1.40 – £2.05 |
8. FBA Inbound Placement Fees
Since 2024, Amazon charges inbound placement fees when you send inventory to FBA. These fees reflect Amazon distributing your inventory across its fulfilment network. You can pay a lower fee by sending inventory to multiple Amazon-designated locations, or a higher fee to send everything to a single location:
- Minimal shipment splits (one location): higher fee, simpler logistics for you
- Partial shipment splits (some distribution): mid-range fee
- Amazon-optimised splits (multiple locations): lowest fee, but more complex sending
For standard-size products, the minimal-split fee ranges from approximately £0.15 to £0.70 per unit depending on size tier. For high-volume senders, optimising shipment splits can produce meaningful savings.
Calculating Your True Profit Margin
Many sellers look only at their selling price and COGS. Your true profit calculation must include all fees:
Amazon provides a free Revenue Calculator in Seller Central (search “Revenue Calculator”) that computes FBA vs FBM profit estimates for any ASIN. Enter your COGS and selling price to get an instant breakdown. Use it before launching any new product — not after.
Fee Reduction Strategies
- Optimise packaging dimensions: Reducing package dimensions even slightly can drop you into a lower FBA size tier, saving £0.50–£1.50 per unit on high-volume SKUs.
- Manage inventory age aggressively: Monitor the Inventory Age report monthly. Run coupons, lower prices, or bundle slow movers before the 181-day surcharge kicks in.
- Use FBA removal orders proactively: It is cheaper to remove and re-send inventory than to pay 12+ months of storage fees on stock that won’t sell.
- Choose Multi-Location Inbound: For high-volume ASINs, the Amazon-optimised split placement saves on inbound fees at scale.
- Price strategically for your category: In tiered referral fee categories (Grocery, Jewellery), pricing just below a fee threshold (e.g. £9.99 vs £10.01) can save significant referral fees on high-volume SKUs.
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