What is Amazon's referral fee and how is it calculated?
Amazon's referral fee is a percentage of the total sale price (item + shipping + gift wrap) charged on every unit sold. Most categories are 15%, with a $0.30 per-item minimum. Amazon Devices sit at 45%, jewellery at 20% above $250, and consumer electronics at 8%. The fee applies to both FBA and FBM sellers.
How the referral fee is charged
Amazon deducts the referral fee at the moment the customer is charged. It applies to the total price the buyer pays, including any shipping and gift wrap charges you set for FBM orders. There is a $0.30 minimum per item, which mainly bites on low-priced accessories.
Common category rates
The 15% rate is the default for most consumer goods (home, kitchen, toys, beauty, pet). A few large categories deviate:
- Amazon Devices Accessories: 45%
- Jewellery: 20% up to $250, 5% above
- Watches: 16% up to $1,500, 3% above
- Consumer Electronics: 8%
- 3P Sellerpower Fulfilment: same as FBA rates apply
- Cell Phone Devices: 8%
- Groceries: 8% below $15, 15% above
Where to find your exact rate
Amazon's Selling Fees Schedule is the source of truth per marketplace. Rates differ between the US, UK, and EU sites, so a SKU priced identically in two marketplaces can carry different referral fees. Nova stores the referral fee per SKU per marketplace, so profit is computed with the correct rate automatically.
Frequently asked questions
Is the referral fee charged on shipping?
Yes for FBM. Amazon charges the referral percentage on the total the buyer pays, which includes any shipping you charge. FBA orders bundle shipping into the FBA fee separately.
Do referral fees change between marketplaces?
Yes. Rates vary by country, especially in electronics and grocery. Selling in the UK and Germany at the same price as the US can produce different net margins.
Does the $0.30 minimum apply to every sale?
It applies when the calculated percentage falls below $0.30. On a $1.50 item at 15%, the fee would be $0.23; Amazon bills $0.30 instead.
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How do I calculate profit per unit on Amazon?
Profit per unit on Amazon equals sale price minus referral fee, FBA fulfilment fee, per-unit COGS, allocated ad spend, and a refund reserve. A quick formula: Profit/unit = Price - (Referral% x Price) - FBA fee - COGS - (Ad spend / units sold) - (Refund rate x Price).
How do I find hidden Amazon fees eating my margin?
The fees that hurt most are rarely hidden, they are just scattered across multiple Seller Central reports. Check monthly storage, aged inventory surcharges, low-inventory-level fees, inbound placement fees, returns processing, subscription-and-save discounts, and coupon redemption fees. Rebuilding a per-SKU P&L from the Fee Preview and Payments reports usually reveals a 3 to 8 point margin gap.
What is a good net profit margin on Amazon FBA?
A healthy Amazon FBA net profit margin sits between 15% and 25% after fees, COGS, PPC, and refunds. Under 10% usually signals hidden fees or overspending on ads. Established brands with private-label pricing power can hold 25% or more, while resellers and wholesalers typically operate closer to 10% to 15%.