Amazon FBM Fees UK: The Complete Breakdown

Selling via Amazon FBM can be significantly cheaper than FBA. But is it worth it?

Selling on Amazon using Fulfilment by Merchant (FBM) involves both fixed and variable fees that sellers need to understand for effective budgeting and profit calculations.

Fixed Amazon FBM Fees

Certain costs are constant every month for FBM sellers:

1. Monthly Selling Plan Fee
   Professional sellers, those who sell more than 35 items each month, must pay a monthly subscription fee of £25 (excluding VAT).
2. Individual sellers are not charged this fee but instead incur a per-item charge detailed below.
3. Referral Fee Percentage
   This key fee is charged for each product sold. It is based on a percentage of the total sales amount, which includes shipping and any applicable gift wrap costs.
4. The usual percentage ranges from 8% to 15%, varying by product category.
5. Here are some examples:
   • Electronics: 7.14%
   • Home & Kitchen: 15.3%
   • Clothing & Accessories: 15.3% for items above £15; 8.16% for items at £15 or lower
   • Books: 15.3%
   Many categories have a minimum referral fee of £0.25 per item. Sellers can view a complete list of referral fees on Amazon’s official fee schedule for further details.
6. Closing Fee for Media Items
   An additional fee of £0.50 is applied per order for sales involving media products such as books, music, DVDs, video games, and software.

Variable Amazon FBM Fees

These fees change based on sales activities or specifics of seller operations:

1. Per Item Fee for Individual Sellers Individual sellers must pay a fee of £0.75 for each item sold. This adds up for those with higher sales volumes, making individual sellers potentially pay more as they sell more products.
2. High Volume Listing Fee For sellers managing more than 2 million active non-media stock-keeping units (SKUs), a fee of £0.0003 is charged for each SKU exceeding this limit. For example, if a seller has 3 million SKUs, they would incur a charge of £300 for the additional million SKUs that surpass the 2 million threshold. This limit applies to each Amazon store; thus, a seller operating in both the UK and France can have 2 million SKUs in each location without incurring extra fees. The fee in France is slightly higher, at €0.0004 per SKU over the threshold. The fee in France is slightly higher, at €0.0004 per SKU over the threshold. This fee is evaluated monthly based on the highest SKU count during that period and will be reflected on the seller’s statement the following month.
3. Refund Administration Fee If a seller refunds a customer for an order after receiving payment, Amazon will return the referral fee paid, minus £5.00 or 20% of the referral fee, whichever is less. For instance, if a customer buys an item for £10.00 with a referral fee of 15%, the seller initially pays £1.50 in fees. If that order is later refunded, Amazon would deduct £0.30 from the fee they refund, resulting in a return of £1.20.

Important Note: These fees are subject to change, so sellers should regularly consult Amazon’s official fee schedule for the latest information.

Sellers must also account for shipping costs when operating under FBM. Although these are not classified as Amazon fees, they significantly impact overall spending.