Understanding Amazon UK Fees: A Simple Breakdown for Profitable Selling

TL;DR

• Understand all Amazon UK fees, including referral, fulfilment, storage, advertising, and misc charges, to protect your margins.
• Compare FBA vs. FBM costs carefully to choose the best fulfilment method for each product.
• Optimise product size, weight, and packaging to lower FBA fees and improve profitability.
• Boost margins by creating bundles or multi-packs that increase average order value and reduce per-unit costs.
• Use Amazon’s Partnered Carrier Programme to cut inbound shipping expenses and improve logistics efficiency.
• Negotiate better supplier pricing to offset Amazon fees and strengthen your overall profit margins.
  

Feeling like your Amazon UK profits keep shrinking no matter how much you sell?

Many sellers struggle with understanding where their money goes and why their margins feel tighter every month. The truth is, Amazon’s fees can quietly eat away at your profits if you’re not paying attention. From referral fees and fulfilment costs to monthly subscriptions, storage charges, and advertising expenses, each small fee adds up fast.

If you don’t fully understand these charges, it’s easy to misprice products or make less money than you planned.

This guide will break down the key Amazon seller fees UK in simple terms, helping you see exactly what you’re paying for and how to manage it smartly. You’ll also learn how to compare FBA and FBM fees and discover practical strategies to cut costs and boost your bottom line.

Why is understanding fees essential for UK sellers?

Understanding Amazon UK fees isn’t just about knowing what you owe — it’s about taking control of your business. Many sellers focus on growing sales, but without a clear picture of the fees behind every sale, that growth can become an illusion.

Because fees shape how you price, source, advertise, and even select your products. If you don’t fully grasp them, you risk running on thin margins without even realising it. You might chase volume, thinking higher sales will bring bigger profits, only to discover that fees scale alongside your growth, wiping out your gains.

Knowing your fee structure gives you the power to make smarter decisions. You can choose between FBA and FBM based on real cost comparisons, adjust your packaging to save on fulfilment charges, or negotiate better supplier rates to offset Amazon’s cut.

More importantly, understanding fees helps you plan for the future. You’re better prepared for seasonal spikes in storage costs, advertising shifts, or changes in Amazon’s policies. Instead of reacting to surprise charges, you can budget confidently and protect your profitability.

In short, understanding fees is not a background task — it’s a core business skill. It’s how you stay profitable, stay competitive, and stay in control of your Amazon UK journey. 

Overview of Amazon UK fee types

#1 Referral fees (category-based % fees)

Understanding Amazon referral fees in the UK is crucial for managing your costs effectively. Referral fees are the percentage-based commission Amazon charges on each sale, depending on your product’s category. While the general referral fee ranges from 8% to 15%, some categories have higher or lower rates that can significantly affect your profits.

It’s important to know that these fees apply to the total sales price, which includes the item price plus shipping or gift wrap charges. Many sellers overlook this and underestimate the final fee.

By reviewing the referral fee percentage for your specific category, you can better price your products, calculate realistic margins, and avoid surprises on your payout reports. Understanding where each fee comes from is the first step toward smarter, more profitable selling on Amazon UK.

#2 Fulfilment fees (FBA vs. FBM costs)

Understanding fulfilment fees is essential for every Amazon UK seller, as they directly affect your profits. Amazon offers two main fulfilment options: Fulfilment by Amazon (FBA) and Fulfilled by Merchant (FBM), each with its cost structure.

With FBA, Amazon handles storage, packing, shipping, and customer service. You pay a fee based on the product’s size and weight, plus storage charges for keeping items in Amazon’s warehouses. While FBA often leads to faster shipping and better customer trust (thanks to the Prime badge), it comes with higher costs, especially for bulky or slow-moving products.

FBM, on the other hand, means you manage fulfilment yourself or through a third-party logistics provider. You avoid Amazon’s fulfilment fees but take on your shipping costs, packaging expenses, and customer service responsibilities.

FBM can be cheaper for large or heavy products and gives you more control, but it requires careful management to maintain strong performance metrics.

Here’s a clear breakdown for Amazon UK sellers in 2024 comparing FBA and FBM fees using average numbers, so you can better understand the typical cost differences.

Moreover, here’s a calculation Amazon profit UK example comparing the profit margins for an Amazon UK seller using FBA and FBM on a £25 product of similar size and weight.

By comparing Amazon FBA costs UK and FBM costs carefully, you can choose the best approach for each product, balancing convenience, expenses, and customer expectations to maximise profitability.

#3 Monthly subscription fees (Pro seller account)

When selling on Amazon UK, understanding the monthly subscription fee is essential for managing your costs effectively. Amazon offers two main types of seller accounts: the Individual account and the Professional (Pro) Seller account.

For most serious sellers, the Pro Seller account is the better choice. It comes with a fixed monthly subscription fee of £25 (excluding VAT), which gives you access to advanced selling tools, bulk listing capabilities, and the ability to run promotions and create special offers.

Unlike Individual accounts, where you pay £0.75 per item sold, the Pro account’s monthly fee covers unlimited sales, making it a cost-effective option if you sell more than 35 items per month. This structure helps you scale without worrying about per-item fees piling up.

Additionally, the Pro account provides access to Amazon’s advertising tools, detailed reports, and eligibility for the Buy Box, which can significantly boost your visibility and sales.

For Amazon UK sellers aiming to grow their business, the Pro Seller subscription is often not just a fee, but an investment. By understanding what you gain in return, you can make smarter decisions and maximise your profitability on the platform.

#4 Storage fees (monthly + long-term)

For Amazon UK sellers, storage fees are an important but often underestimated part of doing business, especially if you use Fulfilment by Amazon (FBA). These fees cover the cost of keeping your inventory in Amazon’s warehouses and are charged monthly, based on the amount of space your products take up.

Monthly storage fees are calculated per cubic foot and change depending on the time of year.

• Typically, fees are higher during the busy October-to-December holiday season when warehouse space is in high demand. This means that even slow-moving items sitting on the shelf can quickly eat into your profits if you’re not careful.
• In addition to regular monthly storage, Amazon also charges long-term storage fees for items stored in FBA warehouses for over 365 days. These long-term fees are significantly higher and are applied twice a year in February and August, making it crucial for sellers to monitor their inventory age regularly.

To stay profitable, Amazon UK sellers should keep a close eye on inventory performance, regularly remove old or slow-moving stock, and consider running promotions to clear out ageing products before long-term fees apply. Proper storage management can make a big difference to your bottom line.

#5 Advertising fees

For Amazon UK sellers, advertising fees are an important part of doing business, but if not managed carefully, they can quickly eat into profits. Advertising fees refer to the costs you pay when running campaigns through Amazon’s platform, such as Sponsored Products, Sponsored Brands, and Sponsored Display ads.

• Advertising fees are based on a pay-per-click (PPC) model — you pay when a customer clicks, not when they buy.
• Without clear goals and good management, ad spend can exceed the sales gained.
• Sellers should regularly track ACoS (advertising cost of sales) and ROAS (return on ad spend) to measure efficiency.
• Set a realistic advertising budget that aligns with product margins.
• Continuously adjust bids and optimise campaigns using performance data to protect profitability.

Amazon UK sellers should regularly monitor key metrics like advertising cost of sales (ACoS) and return on ad spend (ROAS) to ensure campaigns are performing efficiently. It’s also important to set a realistic budget, choose relevant keywords, and adjust bids based on product margins and performance data.

By keeping a close eye on your advertising fees and optimising campaigns over time, you can drive growth while protecting your overall profitability. Thoughtful advertising isn’t just about spending — it’s about spending wisely.

#6 Misc fees

When selling on Amazon UK, it’s easy to focus on the big, well-known costs — like referral fees or fulfilment charges — and overlook the smaller, miscellaneous (misc) fees that quietly add up in the background. Yet, these smaller charges can noticeably impact your profit margins if you’re not careful.

Miscellaneous fees cover a variety of costs that don’t fall under the main fee categories but are still part of running an Amazon UK seller account. For example, you might encounter return processing fees, especially for products in categories with high return rates, like clothing or electronics.

If you use Amazon’s optional services, such as FBA Label Service or FBA Prep Service, you’ll also face small per-unit fees for labelling or preparing your items. There are also removal and disposal fees if you ask Amazon to remove unsold or stranded inventory from its warehouses.

Additionally, sellers using Amazon’s Currency Converter for Sellers (ACCS) pay conversion fees when receiving payments in non-GBP currencies. Understanding these misc fees helps you plan better and avoid unexpected deductions from your payouts.

By reviewing your monthly statements and knowing what’s included, you can spot patterns, adjust your processes, and protect your bottom line more effectively.

Strategies to reduce costs and improve profitability

1. Optimise product size/weight for lower FBA fees

To reduce costs and improve profitability, Amazon UK sellers should start by optimising product size and weight. FBA fees are heavily influenced by how much space your product takes up and how much it weighs, so smart adjustments here can make a big difference.

• First, review your packaging — can you switch to more compact or lightweight materials without compromising product protection? Even small reductions in dimensions can shift a product into a lower FBA fee tier.
• Second, reassess your product variations. For example, offering a smaller pack size or a lighter bundle could lower both fulfilment and shipping costs.

Lastly, use Amazon’s FBA calculator to test how size and weight changes would impact your margins before making adjustments. This proactive approach helps ensure you’re not overpaying on logistics, letting you reinvest those savings into growth-focused activities.

2. Bundle or multi-packs to boost margins

One effective strategy for Amazon UK sellers to reduce costs and improve profitability is to create product bundles or multi-packs. By grouping related items or offering multi-packs of popular products, you can increase the average order value while lowering per-unit fulfilment and shipping costs.

For example, instead of selling a single shampoo bottle, offer a pack of three. This approach helps spread the fulfilment fee across multiple items, reducing the overall cost per unit. Additionally, bundled products often face less direct competition and can stand out in search results, giving you stronger pricing power and better margins.

To succeed with this strategy, analyse your best-selling products and identify natural bundle opportunities. Make sure your product listings highlight the value of the bundle, using keywords like “multi-pack” or “value set” to attract cost-conscious customers and boost sales performance.

3. Use Amazon’s partner carriers for reduced rates

One effective strategy for Amazon UK sellers to reduce costs and improve profitability is to use Amazon’s partner carriers for shipments. By enrolling in Amazon’s Partnered Carrier Programme, you gain access to discounted shipping rates that are often lower than what you’d negotiate directly with couriers.

When sending inventory to Amazon’s fulfilment centres (FBA), using these partner carriers can significantly cut inbound shipping costs, especially for bulk or regular shipments. This not only helps manage expenses but also ensures smoother delivery coordination, as Amazon prioritises shipments using its trusted carrier network.

To maximise savings, plan your shipments carefully — consolidate products, avoid frequent small deliveries, and monitor partner carrier promotions or special offers. Over time, even small per-shipment savings can add up to a meaningful improvement in your overall profit margins, helping you stay competitive in the busy Amazon UK marketplace.

4. Negotiate better supplier pricing to offset fees

One of the most effective ways Amazon UK sellers can improve profitability is by negotiating better pricing with their suppliers. Rather than focusing only on cutting Amazon-related fees, smart sellers look upstream to reduce product costs at the source.

Start by reviewing your purchase volumes and identifying products where you have strong, consistent sales. Use this data to negotiate volume discounts or better payment terms with your suppliers. Even a small cost reduction per unit can significantly improve your margins, especially when combined with other savings strategies.

You can also explore sourcing alternative materials, simplifying packaging, or working with multiple suppliers to encourage competitive pricing. By proactively managing supplier relationships and negotiating favourable terms, you create more room to absorb Amazon’s referral, fulfilment, or storage fees — ultimately keeping your products competitive and your business more profitable.

Final words

Understanding Amazon UK fees is not just about cutting costs it’s about taking control of your profitability. From referral charges and fulfilment fees to storage, advertising costs, and the overall Amazon UK pricing breakdown, each piece of the puzzle affects your bottom line.

Smart sellers don’t just accept these costs; they actively optimise, bundle products, use partner carriers, and negotiate better supplier deals to stay ahead. But navigating these fees and strategies on your own can be overwhelming.

That’s where Amazon consulting experts come in. With their guidance, you gain tailored strategies, deep marketplace insights, and hands-on support to improve margins and scale your business confidently.

Ready to make your Amazon UK business more efficient and profitable? Contact us today!