The referral fee is Amazon's commission on every sale — a percentage of the total sale price that varies by product category. Knowing the exact rate for your categories is essential for accurate profitability calculations.
How Referral Fees Work
When you sell a product on Amazon, Amazon charges a referral fee based on the product's category. This fee is a percentage of the total sale price (including any shipping charges if applicable). It is deducted from your sale proceeds before disbursement.
Most categories charge 15%, but there are notable exceptions both above and below this rate. The referral fee applies regardless of whether you use FBA or FBM — it is the cost of selling on Amazon's marketplace.
Common Category Rates
Here are some of the most common categories and their typical referral fee rates. Note that Amazon updates these periodically, so always check the current fee schedule in Seller Central for exact rates.
Most categories including Home & Kitchen, Toys & Games, Sports & Outdoors, Health & Beauty, and Garden sit at 15%. Books are 15%. Clothing and Accessories can be 15% or higher depending on the price point. Electronics and Computers tend to be lower at around 7–8%. Amazon Device Accessories are 45% (yes, really). Grocery and Gourmet Food is 15% but may have a lower rate for items under a certain price threshold.
Minimum Referral Fees
Some categories have a minimum referral fee — even if the percentage-based calculation would result in a smaller amount. For example, if the minimum is £0.25 and 15% of your £1.50 product would only be £0.23, Amazon charges £0.25 instead. This minimum disproportionately affects very low-priced items.
Impact on Pricing Strategy
The referral fee directly affects your minimum viable selling price. For a product in a 15% referral fee category, every £1 increase in selling price costs you an additional £0.15 in referral fees. This means price increases do not translate 1:1 into profit increases — Amazon takes their cut of every pound.
When comparing products across categories, the referral fee difference matters. A product with a 7% referral fee (electronics) leaves you with significantly more margin than an identical-priced product with a 15% fee. This does not mean you should only sell electronics — demand and competition matter more — but it is a factor in your product selection.
Checking Your Actual Fees
In Seller Central, go to Reports > Payments > Transaction View to see the actual fees charged on each sale. The Revenue Calculator also shows referral fees for any product you look up. Use these tools rather than assumptions — category assignments are sometimes surprising, and a product you assumed was in one category might actually be classified differently.
Fee Changes
Amazon adjusts its fee schedule annually, typically in the spring. Changes can increase or decrease referral fees in specific categories. Stay informed about upcoming changes — they can affect the profitability of products you are already selling. Amazon announces changes weeks in advance, giving you time to adjust pricing or sourcing decisions.
The referral fee is a fixed cost of selling on Amazon. You cannot negotiate it or avoid it. What you can do is factor it accurately into every sourcing decision, ensuring that every product you sell generates a genuine profit after Amazon takes their share.