Key takeaways
- Referral fee rates depend on category.
- Minimum fees can matter for low-priced items.
- Check what the fee base includes.
- Verify fees against real orders each month.
What a referral fee is
A referral fee is a charge Amazon takes on each sale, normally as a percentage of the total selling price, with a category-specific rate and sometimes a minimum per item. It is charged whether you fulfill the order yourself or use FBA, and it is separate from fulfillment charges.
Categories decide the rate
Each product category has its own referral fee structure, and some use tiered rates depending on price. Where a product could fit multiple categories, the classification is determined by Amazon. Check which category your listing sits in, because the rate difference can be significant.
What the percentage applies to
The fee base can include elements beyond the item price, such as shipping or gift wrap charges in certain circumstances. Read the current definition for your marketplace. Misreading the base is a common reason forecasts differ from settlement reports.
Minimum fees
Some categories apply a minimum referral fee per item. For low-priced products, the minimum can raise the effective percentage well above the headline rate. Always calculate the actual fee per unit at your selling price.
- Headline percentage by category
- Minimum fee per item where applicable
- Price bands that change the rate
- What is included in the fee base
Referral fees and pricing decisions
When you change the price, the fee changes too. Build a calculator that takes a price and returns net proceeds after referral fees and other costs. Use it to test promotions and discounts before launching them.
Verify fees on real orders
Compare the fee shown in settlement or transaction reports with your expectation for a sample of orders each month. If the fee does not match the schedule, investigate the category assignment and the base calculation, and document your findings.
Referral fees in multiple countries
Fee structures and categories differ across marketplaces, so do not copy a model from one country to another. Create a separate fee table per marketplace and keep it up to date.
A worked example
A seller discounts a low-priced product for a promotion. Because the product's category has a minimum referral fee, the fee as a share of the discounted price rises sharply. The promotion looks successful on sales but loses money per unit. A simple calculator would have shown this before the promotion ran.
Common mistakes
Typical errors include assuming one rate for all products, ignoring minimum fees and not rechecking categories after listing changes. Make fee verification part of your monthly routine.
Your next three steps
Check your assumptions against real data.
- Confirm the referral fee category and rate for your top products.
- Check minimum fees on your lowest-priced items.
- Compare expected and actual fees on ten recent orders.
Key terms
A few terms used above, in plain language.
- Referral fee: Amazon's commission on each sale.
- Fee base: the amount the percentage is applied to.
- Minimum referral fee: the lowest fee charged per item in some categories.
Frequently asked questions
Can I choose my category to lower fees?
No. Categories must reflect the product and Amazon assigns classification according to its rules.
Do referral fees apply to FBM?
Yes. They apply whichever fulfillment method you use.
This guide is general information. Amazon's fees, policies and program rules change and vary by marketplace, so confirm current details in Seller Central and, for tax or legal questions, with a qualified adviser.