Amazon FBA Fees Explained: What Sellers Need to Include in Profit Calculations

# Amazon FBA fees explained

Amazon FBA fees are the costs Amazon charges to sell, pick, pack, ship, store and process your products through Fulfilment by Amazon.

The biggest mistake sellers make is treating FBA fees as one number. In reality, profit depends on several different fee layers.

Use the free [Amazon FBA fee calculator](/fba-profit-calculator) to estimate the fee stack before you buy inventory.

## Referral fee

The referral fee is charged as a percentage of the selling price. The percentage changes by product category.

This means two products with the same selling price can have different profitability depending on category.

When calculating profit, always select the correct product category instead of using a single flat fee.

## FBA fulfilment fee

The FBA fulfilment fee covers picking, packing and shipping the product to the customer.

It is affected by:

- Marketplace
- Packaged dimensions
- Packaged weight
- Fulfilment tier
- Low-price or special programme eligibility

Small changes in size or weight can push a product into a more expensive tier.

## Storage estimate

Storage cost is easy to ignore before buying inventory, but it matters if the product moves slowly or takes up space.

Your storage cost depends on packaged volume and how long inventory sits in Amazon fulfilment centres.

For a quick screening estimate, include at least one month of storage in your profit calculation.

## Advertising cost

Many FBA products need PPC to rank, launch or defend sales.

If you calculate profit without ad spend, the product may look much stronger than it really is.

A simple way to model this is to add ad spend as a percentage of the sale. For example, if you expect 10% of revenue to go to ads, include that in the calculator.

## Landed cost

Landed cost is not just the supplier invoice price.

It should include:

- Product cost
- Inbound shipping
- Prep or labelling
- Inspection or handling cost where relevant

This is the cost base you compare against net profit and ROI.

## Why FBA fee estimates are not final profit

An FBA calculator is useful before buying, but it is still an estimate.

Actual profit can change because of:

- Returns
- Reimbursements
- Long-term storage
- Placement or inbound fees
- VAT or tax handling
- PPC changes
- Product classification changes

That is why GoWrath focuses on actual P&L tracking after the sale, not only pre-purchase estimates.

## Best way to use the calculator

Use the [Amazon FBA fee calculator](/fba-profit-calculator) before you buy to screen whether a SKU deserves attention.

Then, once inventory is live, track actual Amazon fees, COGS, PPC, storage, reimbursements and payouts in GoWrath.