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Fees

Everything Amazon charged you to sell, ship and store the goods.

60 second readAppears on: Amazon Summary, SKU Performance

What it means

Fees is the total Amazon charged against the row on screen: referral commission, fulfilment, closing and storage fees, service charges, refund administration, shipping labels and statutory deductions. Those charges have different causes — some scale with price, some with size and weight, some with how long stock sits still. Advertising, the goods themselves and inbound shipping are billed separately and sit outside this figure.

Show the math

Formula and a worked example

Commission — the referral fee — is a percentage of the sale price, so it moves with revenue.

Fulfilment, shipping labels and closing fees follow the item: its size band, weight and category. They move with units, not euros. Storage, service charges, refund administration and statutory deductions follow time and events — stock sitting still, returns processed, subscriptions running.

Worked example. Net SalesNet SalesSee the full entry. of €50,000 against €15,000 of fees is 30% of what customers paid. Sell the same €50,000 next month in bulkier stock that's been in the warehouse seven months and the bill can reach €18,000 — 36% — without a single rate changing.

It answers the question

What did it cost you to sell through Amazon instead of your own shop? Read it as a share of sales, because the euro total grows every time you have a good month.

Why it matters

It's often one of the largest costs in the Amazon business, and one of the least visible, because it never arrives as an invoice — it's already gone by the time the settlement lands. A size band, a rate change, one pallet that stopped moving: none of them announce themselves.

The share is what to watch. Fees at 30% of sales leave 70 cents in the euro to cover the goods, the ads and everything else, and every point it climbs comes straight out of what's left.

What good looks like

No universal share applies: a small, light, high-priced product keeps far more of its revenue than a bulky cheap one, and commission varies by category before size and storage get involved. Track fees as a percentage of Net SalesNet SalesSee the full entry. and judge your own line month to month — flat is fine at almost any level, while a climb of two or three points across a quarter is worth a morning's work. Compare across your own SKUs too, since the rows sitting far above the rest are usually oversized, slow-moving or heavily returned.

How to improve it

LeverWhat you doExpectHow longWatch out for
Fast
Remove the long-term stock
Run a removal or disposal order on units past six months in Amazon's warehousesStorage charges drop off the next settlement2–4 weeksRemoval costs money per unit, and disposed stock can't sell — demand that comes back finds nothing there.
Fast
Check your size and weight bands
Re-measure the SKUs sitting just over a fulfilment band and repack them under itA lower fulfilment fee on every unit of those SKUs3–6 weeksTighter packing raises damage in transit, and damaged arrivals come back as refunds with their own charges.
Slow
Cut the returns behind the admin charges
Rework the listings for the SKUs with the most refunded unitsLess refund administration and return processing in the total1 quarterHonest listings persuade fewer visitors, so orders dip for a while before the fee line improves.
Slow
Shift the mix towards cheaper-to-sell products
Rank SKUs by fees as a share of their own sales, then back the light, fast, higher-priced end with stock and budgetThe account-wide share falls1–2 quartersThe cheapest products to sell aren't always the ones people want. Units Shipped and rank on your popular lines can slide.

Every lever costs something somewhere. The last column is the one to read twice.

Read it with

Fees on its own is a number that grows when you do well. Next to what customers paid, it tells you whether Amazon is taking more.

Fees and Net Sales, month over month on Amazon Summary
Fees down
Fees up
Net Sales up

Costing less to sell

Sales grew and the bill shrank. Usually a storage clear-out, a packaging change or a mix that moved towards lighter stock. Whatever it was, it's repeatable.

Work out which change did it and hold it.

Growing, and paying for it

Fees rising with sales is normal, because commission is a percentage. The question is whether the share rose too, since that means the extra volume cost you more per euro than the rest.

Compare the share, not the euro total.
Net Sales down

Shrinking slowly

Both down. If fees fell more slowly, the fixed charges — storage, service fees — now take a bigger slice of a smaller month, and that gets worse before it gets better.

Confirm the bill fell as fast as the sales did.

The worst month shape

You sold less and paid more. Long-term storage, a wave of refund administration, or stock that moved into a costlier size band. None of those are fixed in the ad account.

Open the fee breakdown before you touch ad budget.
Fees + Net ProceedsNet ProceedsFinal proceeds total for the date after Amazon economics aggregation.

Two sides of the same settlement. A payout that falls while fees stay flat is a sales or refund story; a payout that falls while fees climb means Amazon is taking more per unit and your selling did nothing wrong. The two need opposite responses.

Fees + Units ShippedUnits ShippedUnits shipped on this date

Fees divided by units is the cost of putting one item in a customer's hands, and it's the only version of this number that compares month to month. A total up 10% on 20% more units is getting cheaper; up 20% on 5% more units means size, weight or storage time moved against you.

Common misreads

“Fees went up, so Amazon raised its rates.”

Most increases are your own doing — bulkier stock, more units, longer storage, more returns. Check which components moved before you assume a rate change.

“Fees are down, so the month was efficient.”

The bill falls whenever you sell less. Read it as a share of sales: a smaller total on a much smaller month is a worse result, not a better one.

“This is the full cost of selling on Amazon.”

It's what Amazon billed on the settlement. Advertising charged separately, the goods themselves and getting stock into the warehouse all sit outside this figure.

Also called

Amazon Fees · seller fees · marketplace fees · settlement deductions

See yoursYour total Amazon fees for the period, next to the sales they came out of.

Open Amazon Summary