Spoiler alert, it’s not just about listing fees. From selling plans and referral fees to storage costs and ad spend, the costs stack up fast if you’re not clear from day one.
Amazon Selling Plan: Individual vs. Professional
The fulfillment fees were only part of the full picture; selling on Amazon requires a plan, too. So, let’s start with the fundamental cost for listing your products on the Amazon site: the fees associated with making transactions and setting up your Amazon seller account.
For now, Amazon provides two different options for FBA sellers. Individual Plan and the Professional Plan.
1. Individual Plan: Pay-As-You-Sell
- Cost: $0/month
- Per-item fee: $0.99 per unit sold
- Best for: Casual sellers, small volume, testing waters
As a startup entrepreneur, this is by far the best option if you have no experience. You don’t pay a monthly fee, just a $0.99 charge per item sold, deducted directly from your seller account balance. Plus point: deduction occurs only after you make a sale.
Sounds great, right? Only if you’re selling less than 40 items each month. Because if you’re thinking of scaling, this won’t remain sustainable for a long time.
In short: Good for hobby sellers, bad for anyone serious about growth.
2. Professional Plan: Monthly Subscription
- Cost: $39.99/month (flat)
- Per-item fee: $0.00
- Best for: Businesses, scaling brands, serious sellers
If you’re serious about scaling or already selling in volume, the Professional Plan is the smarter bet. You pay a flat fee of $39.99, and the more you sell, the more you save. It’s built with momentum in mind, not margins.
This plan unlocks crucial features like bulk listing, advertising tools, Buy Box eligibility, and access to restricted categories.
In short: If you want to run an actual Amazon business, go Pro. Period.
The per-item fees applying to each and every sale are the defining dealbreaker here. This fee is fine for small-scale sellers or those experimenting with an Amazon storefront. But if growth on the charts, paying $0.99 per item will soon catch up to the subscription fee model. Also, there’ll be a loss of perks like order management, inventory, and sales reports.
Are You Struggling To Generate Sales?
Let Paid Advertising Turn Your Woes To Business Triumphs!
- Attract targeted potential audience
- High conversion rate
- Boost in Return On Investment (ROI)
Amazon Referral Fees: The Non-Negotiable Cut
1. What You’ll Pay
- Standard fee: 8% to 15%
- Average across categories: 15%
- Example: If you sell a $30 kitchen item, Amazon pockets $4.50.
Referral fees vary by category.
- Books have a 15% referral fee.
- Electronics starts from 8%.
- Jewelry invites a fee of 20%.
- Digital products and services have their own fee rules, too.
In most cases, Amazon charges at least $0.30 per sale, even if the category referral rate is lower. So, if your 8% fee comes out to less than $0.30, you’ll still pay the minimum. For categories not included above, read the full Amazon referral fee structure.
In short: Amazon always takes its share. So, know your margin before pricing anything.
Your Product Decides Your Cost: Fulfillment by Amazon or Merchant
Start with the Product - Not the Plan
Small, fast-moving, lightweight items?
- FBA (Fulfillment by Amazon) is usually a smarter option. You get Prime shipping, hands-off logistics, and better visibility.
Heavy, fragile, oversized, or custom products?
- FBM (fulfillment by Merchant) gives you more control and can save you from FBA’s storage and handling fees.
Don’t guess, use Amazon’s FBA Revenue Calculator to compare both routes side-by-side. Just plug in your product’s size, weight, and price. But remember: that tool only works if you’ve already figured out your product’s pricing and shipping behavior. Save this link for future use when you’re clear about the total investment pouring into your Amazon venture.
| Cost Element | FBA (Fulfilled by Amazon) | FBM (Fulfilled by Merchant) |
|---|---|---|
| Fulfillment Fee | ✅ Yes — starts at ~$3.22/unit (depends on size & weight) | ❌ No — you handle shipping |
| Storage Fees | ✅ Yes — $0.87 to $2.40+ per cubic foot | ❌ No — you manage your own storage |
| Returns & Support | Amazon handles it all | You’re on the hook |
| Prime Eligibility | ✅ Yes — boosts trust and sales | ❌ No — limited exposure to Prime buyers |
| Control & Flexibility | Moderate | High — you manage everything |
| Best For | Lightweight, fast-moving, high-volume items | Heavy, fragile, low-volume, custom items |
For a clear understanding;
FBA streamlines operations and gives you reach, but it comes with ongoing fees. Whereas, FBM cuts overhead costs but demands more time and effort from you.
Choose what your product, margin, and long-term growth plan can actually handle.
Amazon Advertising Costs
Amazon sellers must know that, to stay visible in a saturated marketplace, an investment in Amazon PPC (Pay-Per-Click) becomes quite necessary. Although this fee is optional for the seller, the seller must opt for it for better visibility.
What Amazon Ads Cost in 2025
- Average CPC (Cost Per Click): $0.85 to $1.20 (category-dependent)
- Starter budget: $500–$2,000/month
- Ad types: Sponsored Products, Sponsored Brands, Sponsored Display
Better SEO and high conversion rates help lower your ad costs over time, but to gain initial traction, ads are often non-negotiable.
Hidden Amazon Seller Fees You Shouldn’t Ignore
Other Amazon Fees to Watch
Even after product listing and branding costs, Amazon has a few more charges you’ll want to factor in:
- Closing Fee (Media only): In addition to referral sales, Amazon imposes a closing fee on each sale of media products like books, videos, DVDs, and software. These fees used to be variable, but they’ve recently been replaced with a fixed fee of $1.80 per unit sold. If you’re pricing your product low (under $10), you’ll likely eat the margin.
- High-Volume Listing Fee: If you’re sitting on more than 100,000 inactive listings (no sales in 12+ months), Amazon charges $0.005 per listing. Though hitting this limit will be very difficult for most sellers, knowing this cost upfront reaps better planning of the budget.
- Refund Administration Fee: When a customer returns a product, Amazon keeps 20% of your referral fee or $5, whichever is less.
Example: Let’s say you refunded a $20 product with a 15% referral fee. That’s $3 originally. Amazon keeps $0.60 as its admin fee.
It is small, but it adds up. Always use Amazon’s RMA Number when processing returns to ensure proper tracking and avoid seller account issues.
In short: These fees may seem small, but stacked across many orders, they chip away at your profits. Know them upfront.
Inventory & Product Sourcing
Before you sell, you need products. That means your cost of goods sold (COGS) is the first number that matters.
Selling through Amazon doesn’t negate other costs that you might incur if you were selling elsewhere. This cost is the price it takes to source your product onto the shelves.
- Private label products: $2–$10+/unit
- Wholesale deals: Based on your supplier
- Custom manufacturing: Varies by material, Labor, complexity, and MOQ
In short: Your real profit starts after you’ve paid for your product, not before.
Branding & Photography
Every businessman knows that visuals sell. Professional-looking listings with clear photos, clean branding, and a strong narrative don’t just attract attention; they convert it.
- Product photography: $200–$800+
- Listing optimization tools/services: $100–$1,000+
- Trademark & Brand Registry: ~$350 one-time
Good branding also protects your listing from knockoffs and hijackers.
In short: Clean design and strong visuals aren’t just about looks — they protect your margins.
Is Your Business Website Not Visible On Google?
Get It Ranked On #1 Page With Us!
- Google #1 page ranking for targeted keywords
- Rank #1 on your local maps
- Increased brand engagement & sales
Quick Recap: What’s the Total Cost to Sell on Amazon in 2025?
| Cost Type | Low-End Estimate | High-End Estimate |
|---|---|---|
| Professional Plan | $39.99 | $39.99 |
| FBA Fulfillment Fees | $3.22/unit × 100 | $4.50/unit × 100 |
| Referral Fees (15%) | 15% of $25 × 100 | 15% of $40 × 100 |
| PPC Ads | $500 | $2,000+ |
| Photography + Branding | $200 (once) | $1,000+ |
| Software Tools | $49/month | $249/month |
| Refund/Admin Fees | $20–$50 | $100+ |
| Misc. / Storage / Prep | $50–$200 | $300+ |
That’s not counting your time, opportunity cost, and scaling tools.
Total Monthly Range: $1,000–$3,500+, depending on your product volume and marketing.
Is Selling on Amazon Worth the Cost in 2025?
Yes — but only if you play the long game.
Amazon gives you scale, access, and massive buyer intent. But it also takes its share and punishes bad prep. Now, if you understand your niche and audience, allow margins for Amazon’s cut. However, if you’re entering without a clear plan, you’re set to bleed money fast. The right advice would be, build smart, price right, and optimize early, so you can turn Amazon into a long-term revenue machine.
Amazon in 2025 is no longer the gold rush. It’s a marketplace of mature competition. Though with the right product, smart pricing, and a margin-first mindset, it’s still one of the most scalable platforms out there.
Ready to Start Selling on Amazon?
At Softtrix, we help eCommerce brands build, launch, and scale profitably on Amazon. From listing optimization to paid campaign management and brand store setups — we cover it all, so you can sell smarter.
To grow a profitable eCommerce business, you need a data-driven strategy to optimize every dollar. Book a free consultation and let’s map your Amazon growth strategy from day one.
Frequently Asked Questions
Amazon takes 15% referral fees on average, plus fulfillment, storage, and optional ad costs.
So your true profit starts after you’ve covered:
- Cost of Goods (COGS)
- Amazon’s cut
- Any return/refund losses
Aim for at least 30% margins after all costs if you want to grow sustainably.
Realistically, you should plan for $1,000–$3,000 to get started the right way.
That covers:
- Your first inventory batch
- Professional plan fee ($39.99/month)
- Basic product photography & branding
- PPC ads to gain traction
- Buffer for Amazon fees and refunds
Thus, you can start leaner — but cutting corners upfront often leads to poor listings, wasted ad spend, and slower growth.
