Amazon FBA Fee Calculator UK

Amazon FBA fees consist of three main components: a referral fee (7-15% of the selling price depending on category), a fulfilment fee (based on product size and weight, ranging from GBP 2.70 for small items to GBP 9+ for large items), and monthly storage fees (GBP 0.75 per cubic foot January-September, GBP 1.50 October-December).

FBA (Fulfilled by Amazon) means Amazon stores, picks, packs and ships your products. FBM (Fulfilled by Merchant) means you handle storage and shipping yourself. FBA products get the Prime badge and generally sell better, but FBM can be more profitable for large or slow-moving items.

Referral fees are a percentage of the total selling price (including delivery charges) and vary by category. Electronics is 7%, health and beauty is 8%, and most other categories are 15%. There is also a minimum referral fee of GBP 0.25 per item.

Amazon classifies products into size tiers that determine fulfilment fees. Small (up to 38x26x9cm, 460g): GBP 2.70. Standard (up to 45x34x26cm, 12kg): GBP 3.20-5.50. Large (up to 23kg): GBP 5.50-9.00. Oversize items incur additional weight-based surcharges.

Monthly storage fees are charged based on the volume of space your inventory occupies in Amazon fulfilment centres. The rate is GBP 0.75 per cubic foot from January to September and GBP 1.50 from October to December (peak season). Long-term storage fees apply to items stored over 365 days.

Most successful Amazon FBA sellers in the UK aim for a minimum net margin of 15-20% after all fees. Top performers achieve 25-30%. Margins below 10% are risky as they leave no buffer for returns, price changes, or fee increases.

You must register for VAT if your taxable turnover exceeds GBP 90,000 in a 12-month period. Amazon also requires VAT registration for FBA sellers storing inventory in Europe. Once registered, you charge 20% VAT on sales but can reclaim VAT on business purchases.

Key strategies include: optimise packaging to reduce size tier (smaller packaging = lower fulfilment fees), avoid long-term storage fees by managing inventory levels, use Amazon removal orders for slow-moving stock, consider FBM for heavy or oversized items, and regularly review your product pricing.

Amazon charges long-term storage fees for inventory stored in fulfilment centres for more than 365 days. The fee is GBP 4.33 per cubic foot or GBP 0.10 per unit, whichever is greater. This is charged monthly in addition to regular storage fees. Use the Inventory Age report to monitor at-risk stock.

FBA can be profitable for small sellers if you choose products with good margins (30%+ before fees), manageable size/weight, and consistent demand. The Prime badge significantly increases conversion rates. Start with a few products to test before scaling. Many successful sellers started with fewer than 10 products.