How Much Does it Cost to Sell on Amazon? A Complete Guide to Amazon Seller Rates (2026)

Selling on Amazon has become one of the easiest ways to start an online business. Whether you are a beginner or an experienced seller, one of the first questions you ask is: How much to sell on Amazon? Understanding Amazon seller rates, pricing plans, referral fees, fulfillment costs, and other expenses helps you estimate your profit and plan your business smarter.

This complete guide explains how much it costs to sell on Amazon, how the pricing works, and what charges you must know before creating your Amazon seller account. 

Let’s get started.

What Are Amazon Seller Rates?

Amazon seller rates are the fees and charges that Amazon collects from sellers for using its platform. These fees apply whether you sell a few products or run a large online store.

Amazon offers two plans for sellers:

1. Individual Plan
2. Professional Plan

Understanding the Amazon seller rates for each plan helps you choose the right one for your business.

Amazon Individual Seller Plan

This plan is best for beginners or those who sell fewer than 40 items per month.

Cost: $0 monthly + $0.99 per sale

If you’re trying to understand how much it costs to sell on Amazon with the Individual Plan:

• No monthly subscription
• You pay $0.99 every time your product sells
• Referral fees apply
• No access to advanced selling tools

This plan works well for hobby sellers or testing products.

Amazon Professional Seller Plan

This plan is ideal for serious sellers and businesses.

Cost: $39.99 per month + referral fees

Amazon recommends this plan if you sell more than 40 items per month.

If you calculate how much to sell on Amazon with this plan, it becomes cheaper than paying $0.99 per item once your sales grow.

The Professional Plan includes:

• Advertising tools
• Advanced selling reports
• Buy Box eligibility
• Inventory management features
• Bulk listing uploads

Most Amazon sellers use this plan because it offers more profit opportunities.

How Much Is It to Sell on Amazon? Full Breakdown of Fees

To fully understand how much it costs to sell on Amazon, you must look beyond subscription fees. Amazon also charges:

1. Referral fees
2. Fulfillment fees (FBA or Easy Ship)
3. Closing fees (certain categories)
4. Storage fees
5. Labeling and prep fees
6. Refund fees
7. Advertising costs (optional)

Let’s break these down.

Amazon Referral Fees

Referral fees are Amazon’s commission for selling on their platform. This fee depends on your product category.

Referral fees range between 8% to 15% of the product price.

Examples:

• Electronics: 8%
• Beauty: 15%
• Home & Kitchen: 15%
• Clothing: 17%
• Jewelry: up to 20%

If you ask, how much to sell on Amazon, referral fees form the biggest part of your Amazon costs.

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Fulfillment Fees (FBA or Self-Ship)

Amazon offers two ways to deliver products:

A. Fulfillment by Amazon (FBA)

You send your products to Amazon warehouses, and Amazon handles packing, shipping, returns, and customer service.

FBA costs include:

• Pick and pack fees
• Weight-based shipping fees
• Storage fees
• Long-term storage fees

FBA fees depend on size and weight, but typically range from $3 to $8 per unit for small to medium items.

FBA is popular because:

• You qualify for Prime shipping
• You offer fast delivery
• Customers trust "Amazon Fulfilled" sellers
• Higher conversion rates

So when calculating how much it costs to sell on Amazon, include FBA expenses for accurate profit planning.

B. FBM (Fulfilled by Merchant)

Here, you pack and ship orders yourself.

Costs you handle:

• Packaging
• Shipping
• Handling
• Returns processing

FBM is cheaper if you sell heavy or oversized products.

Variable Closing Fees

Some categories like media products (books, DVDs, music) have an additional closing fee.

Examples:

• Books: $1.80 closing fee per item
• DVDs & media: category-specific fees

Monthly Storage Fees

If you use FBA, Amazon charges you storage fees based on how much space your products occupy inside their warehouses.

Storage fees depend on:

• Month
• Product size
• Storage duration

For example:

• January–September: Lower rates
• October–December: Higher rates due to holiday season demand

Storage fees are important when estimating how much it is to sell on Amazon with FBA.

Long-Term Storage Fees (LTSF)

Items stored for more than 365 days incur long-term storage fees. This can affect your cost significantly, so it’s important to manage inventory properly.

Returns and Refund Fees

When Amazon processes a refund for a customer, they charge a fee. This is usually 20–25% of the referral fee.

Advertising Fees (Optional but Recommended)

Amazon PPC ads help increase visibility and sales. Many sellers spend between:

• 10%–30% of revenue on ads

If you want to grow fast, include advertising in your Amazon cost estimate.

Real Example: How Much It Costs to Sell on Amazon

Let’s break it down.

• Product Price: $30
• Referral Fee: 15% = $4.50
• FBA Fee: $4.00
• Storage Fee: $0.20
• Total cost: $8.70
• Profit: $21.30

This is how you calculate how much to sell on Amazon profitably.

How Much Does It Cost to Sell on Amazon - Hidden Costs to Consider

In addition to Amazon seller rates, there are other business expenses:

1. Inventory Cost: Buying bulk stock from suppliers.

2. Packaging: Branded or standard packaging.

3. Shipping to Amazon Warehouses: If using FBA.

4. Software Tools: For example:

• Product research tools
• Inventory management
• PPC automation

5. Taxes and Accounting: Depending on your location.

These hidden expenses help you understand the real cost of selling on Amazon.

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Benefits of Selling on Amazon

Even with different Amazon seller rates, the platform offers huge advantages that most businesses cannot ignore. Many new sellers search “how much to sell on Amazon” or “how much is it to sell on Amazon” because they want to understand the costs before starting but the real value lies in the benefits Amazon provides.

Access to Millions of Customers

Amazon is one of the largest ecommerce marketplaces in the world. The moment you list your products, you get access to a massive audience ready to buy. Instead of spending years building an online store from scratch, Amazon gives you instant visibility. This is one major reason sellers research how much it costs to sell on Amazon because the potential reach is worth the investment.

Higher Trust and Credibility

Customers trust Amazon’s product quality, return policies, and secure payment system. Even new sellers gain credibility simply by selling on the platform. When shoppers see the Amazon name, they feel confident purchasing. This trust factor is why many sellers don’t mind Amazon seller rates they know they will get sales.

Global Selling Opportunities

With Amazon Global Selling, you can expand into international marketplaces such as the USA, UK, UAE, Australia, and more. You can sell worldwide without creating separate websites or marketing campaigns. For sellers wondering how much to sell on Amazon in different regions, this global access becomes a major advantage.

Easy Fulfillment Through FBA

Fulfillment by Amazon (FBA) is one of the biggest reasons sellers join the platform. With FBA:

• Amazon stores your products
• Picks, packs, and ships orders
• Handles customer service
• Manages returns

You don’t need a warehouse, logistics team, or shipping partners. This convenience makes sellers ask “how much is it to sell on Amazon using FBA” because FBA often boosts sales significantly.

Built-In Marketing Tools

Amazon offers several tools to help you grow faster:

• Sponsored ads
• Promotions and coupons
• A+ content
• Brand Registry options
• Product ranking algorithms

These tools help your products appear in front of the right buyers. Many sellers consider Amazon’s fees reasonable because the platform already has a marketing infrastructure ready.

Customer Support Managed by Amazon

Handling customer queries, complaints, or returns can be stressful. Amazon manages most of it for you, especially with FBA. This saves time, money, and resources, allowing sellers to focus on product quality and business growth.

How to Reduce Amazon Seller Costs

Amazon offers huge opportunities, but managing your expenses wisely is the key to earning maximum profit. Many sellers who research how much it costs to sell on Amazon also want to know how to reduce Amazon seller rates and improve margins. Below are practical steps to help you cut costs without affecting sales.

1. Switch to the Professional Plan

If you are selling more than 40 items per month, the Professional Plan is cheaper compared to the Individual Plan.

• The Individual Plan charges a per-item fee, which adds up quickly.
• The Professional Plan has a fixed monthly fee, making it cost-effective for active sellers.

This is why understanding how much to sell on Amazon helps you choose the right plan for your business.

2. Choose Lightweight Products

FBA fees depend on product size and weight.

• Smaller, lighter products cost less to store and ship.
• Heavy or oversized products quickly increase fulfillment charges.

By selecting lightweight items, you can reduce your overall FBA expenses and increase your profit margins.

3. Use Inventory Planning

Proper inventory management helps you avoid Amazon’s long-term storage fees.

• Track stock levels regularly.
• Restock on time without over-ordering.
• Clear slow-moving items using discounts or ads.

Good inventory planning ensures you pay only for what you actually store, lowering your monthly costs.

4. Optimize PPC Ads

Amazon PPC can become expensive if not managed properly.

To reduce ad spend:

• Use keyword targeting wisely
• Remove irrelevant or non-performing keywords
• Monitor ads daily
• Use automated rules to control budgets

Optimizing PPC directly lowers your cost per sale and improves overall profitability.

5. Improve Your Conversion Rates

Better listings lead to more sales with the same traffic.

Higher conversion rates mean:

• Lower ad spend
• Better organic rankings
• More revenue for the same number of clicks

To improve conversions, optimize product images, write clear descriptions, use A+ content, and collect more reviews. This helps reduce the effective cost of selling on Amazon.

How Quantum IT Innovation Can Help You Reduce Amazon Costs and Increase Profit

At Quantum IT Innovation, we help Amazon sellers grow faster, reduce costs, and compete more effectively.

Our Amazon Services Include:

1. Product Listing Optimization - We improve titles, descriptions, keywords, and images to increase visibility.

2. Advanced Keyword Research - We help you rank on Amazon search results.

3. PPC Advertisement Management - We reduce wasted ad spend and improve ROI.

4. A+ Content and Brand Store Design - Better content = higher conversion rates = lower cost per sale.

5. Competitor Analysis - We analyze top sellers and help you outperform them.

6. Inventory & Profitability Planning - We guide you on how much stock to buy, pricing strategy, and cost reduction.

7. Complete Amazon Account Management - We handle everything while you focus on business.

If you want to grow your Amazon brand, lower costs, and improve profit, Quantum IT Innovation is here to help you scale.

At Quantum IT Innovation, we also specialize in Business optimization solutions, Web & App Development, Digital Marketing & AI Consulting for B2B and B2C agencies and companies across the USA, UK, Canada, Australia, Ireland, UAE and the Middle East.

FAQs

1. How much to sell on Amazon?

It depends on your selling plan. Individual sellers pay $0.99 per item, while professional sellers pay $39.99 per month plus fees.

2. How much is it to sell on Amazon using FBA?

FBA fees depend on product size and weight, usually between $3–$8 for small/medium items.

3. What are Amazon seller rates?

Amazon seller rates include referral fees, fulfillment fees, closing fees, storage, and more.

4. How much it costs to sell on Amazon monthly?

If using the Professional Plan:

$39.99 + referral fees + fulfillment costs + advertising (optional).

5. Can I sell on Amazon for free?

No, Amazon charges fees whether you use the Individual or Professional plan.

6. Is selling on Amazon profitable?

Yes. With proper pricing, optimization, and cost management, Amazon sellers can earn high profits.

7. How can Quantum IT Innovation help Amazon sellers?

We offer complete Amazon listing optimization, PPC management, keyword research, branding, competitor analysis, and full account management.

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