Amazon Selling Fees Explained: What You Need to Know

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Selling on Amazon is a massive opportunity for entrepreneurs looking to tap into a vast online marketplace. Majority of small to medium sized businesses (SMBs) contribute to more than a majority of Amazon’s total sales, leading to more sellers to start their journey into the e-commerce world.


But the biggest question lies: what are the costs involved in selling on Amazon?


Whether you're currently an Amazon seller or considering becoming one, understanding these costs is crucial for developing a profitable selling strategy. Here's a breakdown of Amazon's current selling fees.

  • Amazon Monthly Subscription Fee
  • Shipping Fees 
  • Referral fees
  • Category and Subscription Dependent Fees


We’ll guide you through these fees and show you how to estimate your costs for each product sold.


Amazon Monthly Subscription Fee


When you set up your Amazon account and get ready to sell, you'll need to select a selling plan. Amazon provides two choices:


  • Individual Plan: No monthly subscription, but you pay $0.99 per item sold plus the referral fee.
  • Professional Plan: $39.99 monthly, with no additional per-item fee.


Shipping Fees 2024 Update


To ship the items you sell, you may choose either of the following options for your listings:


  • FBM (Fulfilled By Merchant): The seller is responsible for packing, preparing shipping labels, and handling the shipping.
  • FBA (Fulfilled by Amazon): The seller sends their inventory to Amazon, which then handles customer service, refunds, shipping, and labels.


As of February 5th, 2024, Amazon updated the rates for standard size and bulky & extra-large tiers. These updates have been implemented as of April 15th, 2024.



Size tier

Shipping weight

2024 fulfillment fee

Small oversize

70 lb or less

$9.73 + $0.42/lb interval above first lb

Medium oversize

150 lb or less

$19.05 + $0.42/lb interval above first lb

Large oversize

150 lb or less

$89.98 + $0.83/lb interval above first 90 lb

Special oversize1

Over 150 lb

$158.49 + $0.83/lb interval above first 90 lb




Amazon Referral Fees 2024 Update


Some fee changes have been implemented starting in January 2024. To summarize:

Amazon will drop the referral fee to 5% for items costing less than $15, rather than the typical 17%.

For items priced between $15 and $20, the referral fee will be lowered to 10% instead of 17%

Category and Subscription Dependent Fees

Different charges based on the size of your item and the category it’s in will apply to selling on Amazon. Certain categories have unique fee structures or additional costs. For example:

  • Dangerous Goods: Items that require special handling due to their hazardous nature may incur higher fees.
  • Media Products: Books, DVDs, and CDs might have different fee structures compared to other categories.


Understanding the various fees associated with selling on Amazon is crucial for any successful seller. From referral fees to fulfillment costs and special category charges, being aware of these expenses helps you plan your pricing and business strategy effectively. By leveraging Amazon's range of tools and services, you can tailor your approach to fit your business needs and maximize profitability. Remember, the key to success on Amazon lies in careful planning and smart use of the available resources. Happy selling!



A man is standing next to a cell phone with a negative seller feedback on it.
By William Fikhman February 3, 2025
Negative feedback is an inevitable part of selling on Amazon, but it doesn’t have to be a roadblock. Instead of viewing critical reviews as setbacks, see them as valuable insights—opportunities to refine your product, elevate customer satisfaction, and reinforce your brand’s credibility. When handled strategically, negative feedback can become a catalyst for growth, helping you build a stronger, more customer-focused business. Let’s dive into how you can effectively manage, respond to, and even leverage negative reviews to your advantage. Why Negative Feedback Matters Amazon reviews play a crucial role in influencing purchasing decisions. While a handful of negative reviews won’t ruin your sales overnight, ignoring them can lead to: Lower Visibility & Conversions – Amazon’s algorithm factors in ratings when ranking products. Too many negative reviews can hurt search performance and reduce conversions. Brand Reputation Damage – Shoppers check reviews to gauge reliability. A brand that doesn’t address customer concerns may lose potential buyers. Account Health Risks – High volumes of negative feedback can affect seller metrics, potentially leading to suppressed listings or account suspensions. By addressing feedback promptly, you can mitigate these risks and even turn dissatisfied customers into loyal brand advocates. How to Handle Negative Reviews Effectively 1. Respond Quickly & Professionally Acknowledge negative feedback within 24-48 hours to show you care. Stay calm, empathetic, and solution-focused. ✅ Example Response: "We’re sorry to hear about your experience. Customer satisfaction is our priority, and we’d love to make things right. Please reach out via Amazon’s messaging system so we can assist you." 2. Offer a Solution If the issue is product-related, provide troubleshooting steps, a refund, or a replacement. 3. Move the Conversation Offline For complex concerns, encourage direct messaging to prevent further public complaints. ✅ Example: "Thank you for your feedback. Please contact us via Amazon’s messaging system so we can resolve this for you." 4. Ethically Request a Review Update Once an issue is resolved, you can politely ask the customer if they’d consider updating their review. However, never offer incentives—this violates Amazon’s policies. ✅ Example: "We’re glad we could resolve your concern. If you’d like to update your review, we’d greatly appreciate it. Thank you for the opportunity to make things right!" Handling Reviews That Violate Amazon’s Policies Some reviews violate Amazon’s guidelines and can be reported for removal. These include: Profanity, hate speech, or personal attacks False or misleading claims Irrelevant content (e.g., complaints about shipping delays on FBA items) Suspected competitor sabotage (fake negative reviews) How to Report a Review: Locate the review in Seller Central. Click “Report Abuse.” Choose the relevant reason and submit your request. Amazon will review and determine if the feedback should be removed. How to Minimize Negative Reviews While negative feedback is inevitable, proactive strategies can significantly reduce its occurrence and improve customer satisfaction. 1. Optimize Your Product Listings Ensure your product descriptions, images, and specifications are 100% accurate. Clear and detailed listings prevent mismatched expectations, reducing the chances of disappointment and negative feedback. 2. Use High-Quality Images & Videos Showcase your product in real-world scenarios from multiple angles. High-quality visuals help set accurate expectations, giving customers confidence in their purchase. 3. Deliver Outstanding Customer Service Fast, friendly, and solution-focused customer support can turn potential complaints into positive experiences. Address concerns promptly and proactively to prevent frustration from escalating into negative reviews. 4️. Maintain Strict Quality Control Regularly inspect inventory for defects or inconsistencies before shipping. Ensuring top-notch quality minimizes returns, complaints, and negative feedback. 5. Encourage Positive Reviews (the Right Way) Use Amazon’s “Request a Review” feature to invite happy customers to share their experience. Avoid incentivizing reviews, as this violates Amazon’s policies—let your excellent service and product quality speak for themselves. By implementing these best practices, you can reduce negative feedback, enhance customer satisfaction, and build a stronger, more reputable brand on Amazon. Using Negative Feedback to Improve Your Business Rather than seeing negative feedback as a setback, use it as a tool for continuous improvement. Here’s how: Identify Recurring Issues – Monitor your reviews for common complaints. Are customers frustrated by unclear assembly instructions? Are they reporting durability issues? Spotting patterns in negative feedback allows you to address underlying problems at their root. Use tools like Helium 10’s Review Insights to analyze customer sentiment efficiently. Enhance Product Quality – If customers repeatedly point out a specific flaw—whether it’s weak stitching on a bag or a flimsy handle on a kitchen gadget—it’s time to revisit your product design. Collaborate with your manufacturer to improve materials, durability, or functionality based on real user experiences. Optimize Packaging & Instructions - Many negative reviews stem from poor packaging (damaged items on arrival) or unclear instructions. Consider upgrading to protective packaging to prevent shipping damage and rewriting your instruction manuals to be more user-friendly. Including a QR code linking to a step-by-step video guide can also enhance the customer experience. Improve Listing Accuracy & Transparency - Mismatched expectations often lead to dissatisfaction. Ensure that your product descriptions, images, and specifications accurately reflect what the customer will receive. If your item runs smaller than expected, mention it in your listing and suggest sizing up. If assembly is required, make that clear and provide helpful resources. Innovate Based on Feedback - Negative feedback is a goldmine for product development. Use it as an opportunity to innovate—whether it’s launching a new and improved version of a product, offering an additional accessory or bundle, or even creating a brand-new product that better meets customer needs. Final Thoughts Negative feedback isn’t a liability—it’s an opportunity. A well-handled complaint can turn a dissatisfied customer into a loyal buyer. Your success on Amazon isn’t about avoiding bad reviews but about how effectively you respond to them. Don’t let negative feedback hold your brand back—turn it into a competitive advantage! Reach out today or book a Zoom call to explore how we can take your Amazon business to the next level. Let’s unlock your brand’s full potential together with CMO !
A cartoon illustration of an amazon brand store.
By William Fikhman January 31, 2025
Want to boost your brand on Amazon? A dedicated Brand Store lets you showcase your products, engage shoppers, and drive sales — all with no coding required! What is an Amazon Brand Store? An Amazon Brand Store is a multi-page storefront hosted by Amazon, designed to showcase your brand and products. Available to brand owners on Seller Central, it’s a powerful way to share your story, highlight key products, and engage shoppers without coding or extra costs. Shoppers can access your store from search results or product pages, entering an immersive, customizable shopping experience. Choose from Amazon’s pre-made templates or create a unique layout to match your brand identity and drive more sales. How Much Does It Cost? Great news! Building an Amazon Brand Store is completely free. There are no setup fees or hidden costs. However, you may need to invest in an Amazon Store consultant to help you optimize your storefront, attract more visitors, and drive sales across your product catalog. Why Build an Amazon Brand Store? An Amazon Brand Store is more than a storefront. It’s your brand’s stage, designed to captivate shoppers with stunning visuals, engaging content, and seamless navigation that drives sales and loyalty. Drive More Traffic Share your custom store link via email, social media, and ads to attract shoppers. Build Brand Loyalty Highlight your values, expertise, and full product lineup in one central hub. Promote With Ease Integrate product promotions and social sharing to increase awareness and conversions. Leverage Powerful Insights Use Amazon Store Manager’s analytics to refine your listings and marketing strategies. Launch Your Amazon Brand Store in 5 Simple Steps Join the Brand Registry Register your trademark through Amazon’s Brand Registry to protect your intellectual property and gain access to exclusive tools. Design Your Homepage Log into Seller Central, click “Stores,” and select “Create Store.” Choose your brand and pick a theme — Marquee, Product Highlight, Product Grid, or start from scratch. Build & Organize Pages Structure your store with intuitive pages and sub-pages like product categories, best-sellers, and an About Us section. Use the drag-and-drop feature to easily arrange content. Add Content & Products Customize your store with hero images, product grids, videos, and more. Use Amazon’s drag-and-drop tools to showcase your products and boost conversions. Add items automatically or manually via ASIN search. Preview, Polish & Publish Review your store for errors and ensure brand consistency across all platforms. Once ready, submit for approval. Most stores go live within 24 hours, but allow up to two weeks during peak times. Optimize with Data Track daily visitors, sales, and traffic sources to refine your strategy. Use these insights for targeted advertising and listing improvements. Are You Ready to Boost Your Sales? Engage shoppers and drive conversions with a perfectly created Brand Store. By curating high-quality visuals, compelling product stories, and seamless navigation, you can create an immersive shopping experience that builds trust and encourages purchases. At CMO , we’ll help you showcase complementary products, add lifestyle images, and incorporate videos to bring your brand to life. Let’s turn browsers into loyal customers and maximize your sales potential. Reach out here or book a zoom call today!
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