How Much Profit Does Amazon Take from Sellers? A Comprehensive Breakdown

Introduction: The Real Cost of Selling on Amazon

Amazon is the world’s largest online marketplace, connecting millions of buyers with hundreds of thousands of third-party sellers. For entrepreneurs and businesses, selling on Amazon can provide access to a massive customer base and streamlined logistics. However, a key question looms large for anyone considering Amazon sales: how much profit does Amazon actually take from sellers?

Many assume that Amazon simply charges a flat fee or takes a percentage of each sale. The reality, however, is far more nuanced. Amazon’s revenue comes from a complex structure of fees that vary depending on the type of product, its category, size, handling requirements, and the seller’s chosen fulfillment method (Fulfillment by Amazon or Fulfillment by Merchant).

In this article, we’ll break down every fee that Amazon imposes on sellers and show you exactly how much the giant platform could be taking from your profits. Whether you’re an established seller, a startup entrepreneur, or just exploring the idea of selling on Amazon, by the end of this piece you’ll have a clear understanding of Amazon’s cut—and how you can minimize it.

Seller Accounts on Amazon: Choosing the Right Plan

Before evaluating how much Amazon takes from your sales, it’s essential to understand the two primary seller account types: Individual and Professional.

Individual Seller Plan: For Casual Sellers

The Individual plan is ideal for sellers who anticipate selling fewer than 40 units per month. This plan has no monthly subscription fee, but Amazon charges a per-item selling fee of $0.99. In addition to this, all other applicable fees—such as referral fees and fulfillment costs—are still charged.

• No monthly subscription
• $0.99 fee per item sold
• Best for low-volume sellers

If you’re testing the waters with a few products, this plan can help you keep costs low. However, the per-item charge becomes inefficient as sales volume increases.

Professional Seller Plan: For Scaling Businesses

Most serious Amazon sellers opt for the Professional plan, which costs $39.99 per month regardless of sales volume. This flat fee unlocks powerful tools, such as bulk product uploads, access to enhanced reporting, and the ability to create branded storefronts.

Key Benefits of the Professional Plan

• Batch product listing via spreadsheet uploads
• Use of Amazon’s API for integration with inventory and order management systems
• Eligibility for Featured Offer status (Buy Box)
• Access to Sponsored Products advertising

While the monthly fee may seem steep for beginners, it becomes cost-effective when you’re consistently selling over 40 items a month—making it the preferred choice for most business-oriented sellers.

Understanding Amazon’s Fee Structure

Amazon’s total “take” from sellers isn’t just one fee—it’s a combination of charges that impact your net profitability. The major fees include:

1. Referral Fees
2. Per-Unit Fulfillment Fees (FBA sellers)
3. Monthly Storage Fees (FBA sellers)
4. Long-Term Storage Fees (FBA sellers)
5. Advertising and Promotions
6. Optional Service Fees

Let’s examine each in detail.

1. Referral Fees: Amazon’s Percentage Cut

The referral fee is Amazon’s primary source of revenue from sellers. It’s a percentage of the total sales price (including shipping), typically ranging from 8% to 25%, depending on the product category.

Most common referral fees by category:

Note: The referral fee is calculated on the total amount the customer pays: product price + shipping + gift wrapping + taxes (where applicable).

For example, if you sell a $25 kitchen gadget (in the 15% referral category), Amazon takes $3.75 just from the referral fee. If your product costs $100 and is in the Apparel category (17%), your referral fee is $17.

Some categories also have minimum referral fees. For instance, shoes and handbags have a $2 minimum. So even if 15% of the sale is less than $2, Amazon still charges $2.

2. Fulfillment by Amazon (FBA) Fees

If you choose Fulfillment by Amazon (FBA), Amazon handles storage, picking, packing, shipping, customer service, and returns. In exchange, Amazon charges per-unit fulfillment fees based on the product’s size and weight.

These fees vary by season—typically higher during peak periods like the holiday season (October to December).

Standard-Size Item Example (2023 Rates, U.S.)

• Dimension: Under 15 x 12 x 0.75 inches
• Weight: Under 1 pound

Fulfillment Fee: $3.22

• If the product weighs 1–2 pounds: $3.77

For larger or heavier items (e.g., sports equipment, small furniture), fees can exceed $10 per unit.

Storage Fees (Monthly and Long-Term)

Amazon charges monthly storage fees based on the volume of inventory stored in its warehouses. These are calculated per cubic foot.

• January–September: $0.87 per cubic foot (standard size)
• October–December (peak season): $2.40 per cubic foot

For oversized items, the rates are significantly higher.

Additionally, Amazon imposes long-term storage fees on inventory stored for over 365 days. These fees are either:

• $6.90 per cubic foot, or
• Minimum $0.15 per unit (whichever is greater)

Long-term fees are charged every 3 months and can quickly erode profitability if stock turns over slowly.

3. FBM: Fulfillment by Merchant Costs

If you opt for Fulfillment by Merchant (FBM), you assume responsibility for shipping. While this skips FBA fees, it introduces hidden logistical costs:

• Packaging materials
• Shipping labels and carrier fees (USPS, UPS, FedEx)
• Software for managing inventory and shipping
• Customer service overhead for returns and complaints

On average, small sellers spend $3 to $6 per shipment using third-party carriers, plus time and labor. So while avoiding FBA fees, the savings may not be as significant once operational costs are considered.

4. Advertising and Promotions: Optional but Crucial

Amazon does not require advertising, but in today’s competitive environment, most sellers use Amazon Sponsored Products to improve visibility and win the Buy Box.

These operate on a pay-per-click (PPC) model. You bid on keywords, and Amazon charges you only when a shopper clicks on your ad.

Average Advertising Cost of Sales (ACoS) ranges from 15% to 30%. For example, if you spend $300 on ads and generate $1,000 in sales, your ACoS is 30%.

While this is an optional cost, high-performing sellers typically allocate 15–25% of their revenue to advertising to maintain visibility and compete with rivals.

5. Optional and Specialized Fees

Amazon also offers optional services that enhance marketability or efficiency—for a price.

• Amazon Brand Analytics: Free for brand-registered sellers, but product research tools (e.g., Jungle Scout, Helium 10) cost extra.
• Digital Marketing Tools: Sponsored Brands, Sponsored Display ads.
• Product Bundling: Fees apply if Amazon handles combining products.
• Subscription Services: For sellers offering recurring product deliveries.
• Closing Fees: $1.80 per media product sold (DVDs, video games, books).

These fees can add up, especially for niche products or high-volume operations.

Real-World Example: Calculating Amazon’s Cut

To understand how much Amazon truly takes, let’s walk through a real-life scenario.

Seller Profile: Jessica’s Eco-Friendly Yoga Mats

• Product: Yoga mat, 2.5 lbs, dimensions: 72 x 18 x 0.5 inches
• Selling Price: $45
• Cost to Make: $12
• Chosen Fulfillment: FBA
• Category: Sports & Outdoors (15% referral fee)

Fee Breakdown:

1. Referral Fee: 15% of $45 = $6.75
2. FBA Fulfillment Fee (Standard Oversize Tier 1): $5.18
3. Monthly Storage (avg. 0.5 cu ft stored): $0.87 × 0.5 = $0.44 (per month)
4. Advertising: Jessica spends an average of $5 per sale to rank well (~11% ACoS)
5. Professional Seller Plan ($39.99 ÷ 500 units sold/month): = $0.08/unit

Total Amazon-Related Costs Per Unit: