Learn how to turn Amazon’s thousands of daily returns into a profitable reselling business.
May 15
FBA gives you scale and speed, but knowing the fees upfront is key to keeping your margins healthy.
Selling on Amazon with Fulfillment by Amazon (FBA) can be incredibly powerful for scaling your business. The trade-off? A complex web of fees that can quickly eat into your profit margins if you don’t understand them.
Let’s break down exactly what you’ll pay in 2025 to use Amazon’s fulfillment network, so you can calculate your true costs and make smarter inventory decisions.
Before diving into FBA-specific costs, it’s important to note that all Amazon sellers pay baseline fees regardless of fulfillment method.
These include referral fees (typically 8-15% of your sale price), subscription costs ($39.99/month for Professional sellers or $0.99 per item for Individual sellers), and in some categories, additional closing fees.
For a complete breakdown of these core selling fees, check out our comprehensive guide on how much it costs to sell on Amazon in 2025.
The core of FBA costs are fulfillment fees: per-unit charges covering picking, packing, shipping, customer service, and returns processing.
FBA fulfillment fees are calculated based on:
Here are some examples using current rates (as of August 2025):
Small Standard items (Non-apparel)
Larger items
Apparel items consistently cost more to fulfill. Typically, $0.30-$1.00 higher per tier. For example, a t-shirt weighing 8-12 oz costs $3.72 to fulfill versus $3.43 for a similarly sized non-apparel item.
Beyond fulfillment, Amazon charges for the space your inventory occupies in its fulfillment centers.
Storage fees are calculated based on the daily average volume (cubic feet) your inventory occupies:
Standard-size items
Oversize Items
Interestingly, standard-size items cost more per cubic foot despite being smaller, due to denser shelving requirements.
Amazon penalizes inefficient inventory management through surcharges. For example, if you maintain stock for 25 weeks worth of sales (instead of the ideal 8-10 weeks), you’ll pay additional fees:
Example calculation: For 100 small items (0.05 cubic feet each) with a 25-week utilization ratio:
Items containing batteries, flammables, or aerosols incur higher storage rates:
Beyond core fulfillment and storage fees, several other costs can impact your FBA profitability.
Items stored for more than 181 days incur additional monthly fees (starting at $0.50 per cubic foot):
These fees can significantly impact long-term profitability for slow-moving inventory.
For certain categories (apparel, shoes, watches, jewelry, and luggage), Amazon charges for processing customer returns. The fee equals the original fulfillment fee for the item.
When you need to remove excess inventory from Amazon’s warehouses:
Removal orders (shipping back to you)
Disposal orders (Amazon discards the items)
This often-overlooked fee is charged when Amazon distributes your inventory across multiple fulfillment centers:
Understanding your complete FBA expenses is crucial for accurate profit calculations.
Amazon also provides several tools to estimate your fees:
Smart tactics can significantly reduce your FBA expenses and improve profit margins.
Sometimes it’s cheaper to remove inventory than continue paying storage fees:
FBA isn’t always the most cost-effective option:
Understanding Amazon FBA fees is essential for building a profitable Amazon business in 2025. While the fee structure may seem complex, taking the time to calculate your costs accurately will help you make informed decisions about which products to sell and how to optimize your inventory management.
Remember that FBA fees should be viewed as part of your overall business strategy. The convenience, Prime eligibility, and customer trust that come with FBA can often justify the costs—but only if you’re selecting products with sufficient margins and managing your inventory efficiently.
But beyond just understanding fees, optimizing your entire Amazon operation is critical for long-term success. Managing inventory levels, tracking profitability, and streamlining your prep and ship processes can dramatically impact your bottom line.
Seller 365 can help simplify these complex operations. With features for inventory management, profit tracking, and more all in one platform, you can spend less time juggling multiple software subscriptions and more time growing your business.
By consolidating your tech stack and optimizing your operational workflow, you’ll be well-positioned to maximize your Amazon FBA profitability in 2025 and beyond. Try it free for up to 14 days.