How Amazon Fees Affect Your Profit as a UK Seller
A breakdown of Amazon UK seller fees including referral fees, FBA costs, and how to calculate your true profit per sale.
Amazon UK fee structure
Selling on Amazon involves multiple fees that can significantly reduce your profit. Understanding each fee is essential for pricing your products correctly.
Main fee types
| Fee | Typical Rate | Notes |
|---|---|---|
| Referral fee | 7–45% (typically 15.3%) | Percentage of sale price, varies by category |
| Closing fee | £0.25 | Per-item fixed fee |
| FBA fulfilment | £3.25+ | Picking, packing, and shipping (FBA only) |
| FBA storage | Variable | Monthly per-cubic-foot charge |
| Subscription | £25/month | Professional seller plan |
FBA vs FBM
FBA (Fulfilled by Amazon): Amazon stores, picks, packs, and ships your products. You pay fulfilment fees but get Prime badge eligibility and customer service handling.
FBM (Fulfilled by Merchant): You handle storage and shipping yourself. No Amazon fulfilment fees but you manage all logistics.
Referral fees by category
The referral fee varies widely. Electronics might be 7%, while clothing can be 15% and jewellery up to 20%. Most categories fall in the 12–17% range. Check Amazon Seller Central for current rates in your category.
Advertising costs
Most competitive categories require Amazon PPC advertising to maintain visibility. Typical costs range from 10–30% of sales revenue. Factor this into your profitability calculations.
VAT considerations
If you are VAT-registered, remember to calculate your margin on the ex-VAT selling price. VAT is not revenue — it belongs to HMRC.
Try the calculator
Use our Amazon Fee Calculator to see your exact fees and profit for any product price.
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Last updated
Last reviewed: 2026-04-12T11:32:25.479Z.