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What are Amazon’s key fees and costs for new sellers?
Ashleigh
Account Performance Manager at Amersify
Introduction
Amazon can be extremely profitable — but only if you understand the real cost of selling on the platform. Many new sellers underestimate how quickly fees eat into margins.
From referral + DSF to fulfilment, storage, and ad spend, this guide breaks down every major cost you’ll face, shows how they’re calculated, and helps you protect your profit.
1. Amazon’s Main Fee Types (Overview)
Every seller pays at least one of these core fees:
Fee Type | Description | Who It Applies To |
|---|---|---|
Subscription Fee | Monthly cost for a Professional account | All Pro sellers |
Referral + DSF Fee | Amazon’s commission (with Digital Services Fee) | All sellers |
Fulfilment Fee (FBA) | Pick, pack, shipping, returns | FBA sellers |
Storage Fee (FBA) | Stock held in Amazon warehouses | FBA sellers |
Advertising Costs | Pay-per-click campaigns | Optional but common |
Refund / Returns Fee | Costs triggered when customers return products | All sellers |
Other Fees | Removal, disposal, currency conversion, etc. | As applicable |
💡 Amersify Tip: Before listing any product, compute your total landed cost per unit — including COGS, freight, DSF, and every Amazon cost. Only then can you see your true margin.
2. Subscription Fee (Professional Account)
£25 per month (+VAT) flat rate in the UK.
Unlocks bulk upload, analytics, Brand Registry, advertising tools, and more.
The non-Professional (Individual) plan charges £0.75 per item sold, but lacks advanced features.
Amersify Tip: This subscription pays for itself if you sell 40+ units per month — after that, the features and control outweigh the cost.
3. Referral + DSF Fees (Commission on Each Sale)
Amazon charges a base referral fee by category, then adds a Digital Services Fee (DSF) in the UK, normally 2% of the referral fee. This increases the effective commission rate slightly above the base.
How It Works
Amazon defines a base commission per product category (e.g. 10%, 15%, 7%).
The UK DSF (2%) is applied on that fee amount — so 10% becomes 10.2%, 15% becomes 15.3%.
The DSF is shown as a separate line item and is charged in addition.
Examples (UK, illustrative):
Alcohol (Beer, Wine & Spirits): base 10.0% → effective 10.2% including DSF
Home & Kitchen (Everything else): base 15.0% → effective 15.3% including DSF
Consumer Electronics: base 7.0% → effective 7.14% including DSF
Formula for Effective Rate:
Effective referral % ≈ Base % × 1.02 (i.e. add 2%)
Notes
Always check Amazon UK's current fee schedule for the base fee by category — Amazon updates them periodically.
Some categories have tiered rates (for example, involving caps or minimums).
DSF is specific to the UK and applies differently in other marketplaces.
4. Fulfilment by Amazon (FBA) Fees
For FBA sellers, Amazon charges fees per unit based on size/weight:
Product Size Tier | Example | Fee Range (UK) |
|---|---|---|
Small Parcel | Cosmetics, small items | ~£2.00 – £2.50 |
Standard | Apparel, household items | ~£2.50 – £3.50 |
Oversize | Larger appliances | £5.00+ depending on dimensions |
These fees cover:
Picking, packing, shipping
Customer service
Returns handling
Amersify Tip: Always use the FBA Revenue Calculator in Seller Central — it considers all current fulfilment rates for your SKU.
5. Storage Fees (FBA Sellers Only)
Amazon charges monthly storage fees based on volume and time of year:
Standard-size inventory (Jan–Sep): ~£0.75 per cubic foot per month
Peak period (Oct–Dec): ~£2.40 per cubic foot per month
Aged inventory surcharge: Applies to stock held more than 181 days
Repeated overstocking or stale inventory will erode profitability much faster than you expect.
💡 Amersify Tip: Maintain a strong Inventory Performance Index (IPI) — underperformance can lead to storage limits and extra costs.
6. Advertising Costs (Amazon PPC)
Advertising isn’t a “fee” per se, but it’s a necessary expense for most sellers.
You’ll pay each time someone clicks your ad, regardless of purchase.
Main campaign types:
Sponsored Products
Sponsored Brands
Sponsored Display
Typical click costs (UK):
~£0.20 to £1.00+ depending on category competition
Good ACOS (Advertising Cost of Sale) benchmarks are often 15–30%
Amersify Tip: Always include ad spend when modelling margin — treat it as a core cost, not optional fluff.
7. Refund / Returns Fee
When a customer returns a purchase, Amazon often charges a refund administration fee. The amount is either the lesser of £5.00 or 20% of the referral fee.
For FBA items, Amazon covers the return shipping within its fulfilment fee.
For FBM items, you’ll bear return handling costs yourself.
If your returns rate spikes, that’s usually a sign your listings or packaging need improvement.
8. Other Fees You Might Encounter
FBA removal or disposal fees — to remove unsellable inventory
Manual processing fees — if barcodes or labels are missing
High-volume listing fees — for accounts with very large catalogues
Currency conversion fees — if Amazon disburses in a different currency
Long-term storage fees — for stock unsold over extended periods
💡 Amersify Tip: Use a multi-currency business account (e.g. Wise, Revolut) if you sell across EU marketplaces — it minimises conversion leakage.
Frequently Asked Questions
Do all products pay DSF in the UK?
Yes, for most categories, DSF is applied to the referral fee — though Amazon excludes or adjusts some special categories.
Do Amazon fee structures differ by country?
Absolutely. Each marketplace (UK, EU, US) has its own base referral rates, taxes, and policies. Always check the local seller help pages.
Can I negotiate lower referral fees?
Not typically. Referral fee is standard. Highly exceptional SKU deals or exclusive partnerships with Amazon might get special pricing, but that’s rare.
Where do I see all these fees in one place?
In Seller Central → Reports → Payments → Transaction View, you’ll see referral + DSF, FBA, storage, and any other charges broken down per order.
Related Articles
What is the difference between Amazon Seller Central and Vendor Central?
How to Set Up an Amazon Seller Central Account Correctly
What Information Do I Need Before Listing Products on Amazon?
Summary
Amazon’s fee landscape is more complex than many new sellers realise — especially when you factor in the Digital Services Fee (UK) that inflates effective referral rates slightly.
Every sale includes a referral + DSF charge, plus possible FBA, storage, advertising, and return costs.
The most successful brands don’t simply “hope fees work out” — they model every cost meticulously before launching any SKU. That stops surprise losses, ensures healthy margins, and gives your brand a sustainable footing on Amazon.
