It’s no secret that Amazon is a wildly successful tech and e-commerce company, and this globally recognized platform is as popular for shoppers as it is for sellers.
In fact, Amazon has over 1.9 million small and medium-sized merchants on Marketplace, making up nearly 60% of the total retail sales.
These impressive numbers are understandably attractive to many product manufacturers and retailers.
That being said, if you’ve considered joining Amazon Marketplace, you may be wondering what is an Amazon referral fee? I wanted to figure this out as well, which is why I did a lot of research as you can see below!
What Is Amazon Referral Fee In 2022?
An Amazon referral fee is the portion Amazon takes from each Marketplace sale. As of 2022, most Amazon referral fees fall within the 8% to 15% range, although it depends on the category. Referral fees are charged alongside individual or professional selling plans and fulfillment fees, as well as optional costs for advertising or storage.
If you want to know more about Amazon referral fees, including typical fees for popular products and how much it costs to sell on Amazon, continue reading our comprehensive guide!
What Are Referral Fees For?
It always helps to understand why Amazon charges referral fees in the first place. Essentially, these fees are like a commission for Amazon because the company brings extensive web traffic right to your product.
Think of all the times someone searches for a certain product on Amazon and winds up on your listing, or your product shows up as a recommendation for shoppers who are browsing similar items.
Amazon collects a referral fee on all Marketplace items sold to account for this undeniable traction and exposure.
These referral fees are charged for completed sales and are calculated based on what’s greater – a minimum set price or a percentage of the total sale.
Amazon is not alone in charging referral fees, as many major e-commerce companies charge commission for products sold via their platforms. After all, this is how many businesses make money, and Amazon is no exception.
By connecting sellers and buyers, Amazon makes millions of successful referrals every day, which is just one reason why the company has grown in value year after year.
How Much Are Amazon Referral Fees?
Amazon referral fees vary by product category, which helps the e-commerce giant maintain fairness between competing sellers.
All items classified within a category are charged the same referral fee percentage or minimum, as outlined on Amazon’s referral fee chart.
Referral fees by percentage are calculated using the total sale price, so it depends on how much the Marketplace seller lists items for.
If you are interested in selling on Amazon, keep in mind the referral fee minimum is $0.30 on most items, although usually the referral fee percentage is higher so that is charged instead.
Here are a few referral fee percentages to consider for different categories:
- Personal computers – 8%
- Janitorial and sanitation – 12%
- Home and garden – 15%
- Shoes and sports – 15%
- Clothing – 17%
- Gift cards – 20%
Remember, these are just some of the category referral fees listed on the Amazon Seller site, so you will want to review the full chart to understand estimated costs for your items.
For any product categories not listed on Amazon’s referral fee page, you can expect Amazon to collect around 15% in commission.
One last thing to keep in mind is that some categories have a split referral fee percentage, so Amazon takes a higher percentage for a portion up to a certain amount, and then a smaller percentage as the total sale increases.
Entertainment or sport collectibles are a great example. The Amazon referral fee is 15% for up to $100, then 10% for the total sales price ranging from $100 to $1,000. Amazon takes a 6% referral fee for the portion of the total over $1,000.
Compact appliances, fine art, electronics, furniture, decor, grocery, gourmet food, health, personal care, jewelry, and watches are some of the other categories that have referral fees by portion, so make sure you check that out.
What Are Amazon Seller Fees?
Amazon referral fees are charged to all Marketplace sellers on every item they sell, and there are some other costs to factor in, too.
This includes the selling plan, which is $0.99 per unit sold on the individual plan, or $39.99 per month on the professional plan regardless of total units sold.
Then there are fulfillment fees, which vary for sellers fulfilling their own orders vs. those using Fulfillment by Amazon (FBA).
For items in the media category, Amazon also charges a fixed $1.80 closing fee per product sold. The referral fee is taken out first before the closing fee is deducted.
Remember, closing fees only apply to the media category, including items like computer games, software, books, videos, DVDs, Blu-ray discs, and gaming consoles.
There are a few more costs that may apply, such as long-term storage, advertising, or premium services. If you choose these optional add-ons, then the total amount Amazon collects from your sales will be higher.
Nearly two million small and medium-sized companies are selling on Amazon Marketplace, which is set to continue growing in the coming years along with the rest of Amazon.
If you’re thinking about joining Amazon Marketplace as a third-party seller, the referral fees are something to keep in mind, as this is like Amazon’s commission for bringing buyers and sellers together.
Generally, referral fees are within 8%-15% of the item cost or a minimum dollar value, whatever is higher.
Although Marketplace sellers cannot get out of being charged referral fees, which are automatically deducted from every transaction, they can be strategic with what items they choose to sell, as the referral fees are lower in some categories.
For example, appliances, cell phone devices, and electronics have a fixed referral fee of 8%, while sports, tools, and games are higher at 15%.
You can check out referral fees and other applicable Amazon charges on the official sell.amazon.com/pricing page.