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Fulfillment by Amazon handles storage, packing, shipping, customer service and returns. It also brings Prime eligibility, which can lift sales. The trade-off is a set of fees that change with your product’s size and weight. You can test different fee levels in the FBA section of the Amazon seller fee calculator.

The fulfillment fee

Amazon charges a fee for each unit it ships. The amount depends on the size tier (small standard, large standard, large bulky and so on) and the shipping weight, which is the greater of the actual weight and the dimensional weight for larger items. Small, light items cost a few dollars. Oversize items can cost many times more. Amazon also adjusts the fee for very low-priced items and during peak season in some years.

Why an inch matters

Size tiers have hard limits. A package that is slightly too long or heavy moves into the next tier and the fee jumps. Here is how the fee changes profit on the same $24.99 product.

Profit on a $24.99 product costing $6 as the FBA fee rises. Calculated with the default rates in our calculators.
FBA feeTotal feesPayoutFees %Profit
$3.25$7.39$17.6029.57%$11.60
$3.75$7.89$17.1031.57%$11.10
$4.25$8.39$16.6033.57%$10.60
$5.25$9.39$15.6037.57%$9.60
$6.50$10.64$14.3542.57%$8.35
$8.50$12.64$12.3550.57%$6.35

Going from a $3.25 fee to $6.50 cuts profit by more than a quarter. Redesigning packaging to fit a smaller tier is one of the best returns on effort in FBA.

Storage fees

Monthly storage is charged per cubic foot, with higher rates from October to December. Stock that sits too long attracts an aged inventory surcharge on top. Slow sellers can end up costing more to store than they earn.

Placement and other fees

The inbound placement fee depends on how Amazon splits your inbound shipment. You can choose to send to fewer locations and pay a higher fee, or split shipments to pay less. Removals, disposals, labelling and returns processing in some categories have their own charges.

Estimating fees per unit

Divide monthly storage by units sold to get a per-unit figure, and enter it in the calculator. For the full picture, including referral fees, read Amazon seller fees explained. If fees look too high, compare with shipping yourself in FBA vs FBM.

Frequently asked questions

How is the Amazon FBA fee calculated?

By size tier and shipping weight. Amazon measures and weighs each product and uses the greater of actual and dimensional weight for larger items.

When are Amazon storage fees highest?

From October through December, when monthly storage rates rise for most products.

Run your next sale through the calculator before you commit.

Open the Amazon US fee calculator