Selling on Amazon allows companies to generate a lot of money, but they also have to consider the expenses involved. Among the most significant expenses consumers pay are the referral fee Amazon. Ignorance of this cost makes mistakes with gains easy and results in loss of money. Knowing exactly what is referral fee Amazon helps sellers to better plan, price their products, and remain competitive in a saturated industry.
We’ll dive deep into explaining what is the referral fee on Amazon, its 2024 value, and the reasons of importance of keeping this in mind. Whether you are a new seller or wish to expand your store with more items, your Amazon strategy heavily relies on referral payments. Tools like Plugbooks can help simplify fee tracking and provide clear insights so you always know where your profits stand. Let us simplify and follow clear, simple guidelines.
Keynotes
- Most referral fees range from 8% to 15%, other areas—like Amazon devices—may have 45% as the range.
- Whether either FBM (Fulfilled by Merchant) or FBA, you have to pay a referral fee for every item sold.
- Amazon alters its charge structures annually, hence merchants must keep current as well.
- Though the percentage charge is higher, certain items have a minimum referral cost of $0.30.
- Every kind of good has a distinct referral fee %.
What Is Referral Fee Amazon? (Clear Breakdown)
Every item you sell on Amazon counts as a commission charge paid to Amazon by you as a vendor. This is the reference fee. Amazon is a massive market, hence millions of individuals can purchase your products there. For allowing Amazon vendors access to this enormous audience, Amazon earns a percentage of every sale. It goes under the name “referral fee.”
- Usually a part of the whole sales price, the referral fee covers shipping and gift wrapping if necessary.
- The type of products determines the percentage variations.
- Some categories include minimum connection cost amounts. This guarantees Amazon’s profitability even on somewhat low-priced goods.
Example:
In this instance, Amazon will collect $7.50 from a laptop case sold for $50 in a location with a 15% referral fee.
What Is the Referral Fee on Amazon in 2024?
When people ask what the referral fee is on Amazon, they usually want to know the exact numbers for their products.
Here’s the updated 2024 breakdown:
| Product Category | Referral Fee (%) |
| Books, Music, DVDs | 15% |
| Electronics | 8% |
| Clothing, Shoes & Accessories | 17% |
| Beauty & Personal Care | 8%-15% (based on price) |
| Grocery & Gourmet Food | 8% |
| Amazon Device Accessories | 45% |
| Large Appliances | 8% |
2024 Note:
Referral fees in various beauty fields are now split according to the item’s pricing, either under $10 or beyond $10. To be sure it’s accurate for your location, always double with Amazon Seller Central.
What Is a Referral Fee on Amazon and How Does It Work?
When we dive deeper into what is a referral fee on Amazon, it’s important to understand how it operates behind the scenes. The referral fee is deducted straight from your income upon a sale, but Plugbooks.io helps track it automatically for accurate profit insights. Amazon removes it from the sale money before paying you; you are not paid separately.
- This holds true for any item you offer, whether you ship it yourself or employ Fulfilment by Amazon (FBA).
- We work it out using the complete selling price rather than merely the starting price.
- The referral fee considers present wrapping and delivery costs as well.
Important:
Even if you satisfy your own sales, you will still have to pay Amazon the referral fee. It has nothing to do with the path of fulfillment.
What Is Referral Fee on Amazon vs Other Amazon Selling Fees?
Understanding what is referral fee on Amazon is important, but so is knowing the difference between referral fees and other selling costs.
| Fee Type | Description |
| Referral Fee | Percentage of each sale paid to Amazon |
| Fulfillment Fee (FBA) | Fee for packing, shipping, and handling (if FBA) |
| Subscription Fee | $39.99/month for Professional Seller accounts |
| Closing Fee (Media Products) | Small fee on media items like books or DVDs |
Pro Tip:
Referral fees are paid by all buyers. Your business’s operations will determine whether you have to pay FBA fulfillment or membership dues.
How Plugbooks Helps with Amazon Referral Fees
Understanding and managing Amazon referral fees is essential to maximizing your profits and that’s exactly where Plugbooks becomes your best ally. Plugbooks simplifies Amazon bookkeeping by automatically tracking all types of fees, including referral charges, fulfillment costs, and other hidden deductions that affect your margins.
Instead of manually calculating referral fees on Amazon or worrying about discrepancies in your payouts, Plugbooks gives you real-time financial clarity with clean, categorized breakdowns of every transaction. More importantly, Plugbooks seamlessly integrates with QuickBooks, allowing sellers to sync their Amazon sales data directly into their accounting software.
This automation not only saves time but ensures 100% accuracy, helping you stay tax-compliant and profit-focused. If you’re aiming to take full control over your Amazon profit margins, Plugbooks makes it easier to plan smarter and grow faster.
Conclusion
One of the most crucial things customers should know if they want to turn a profit is regarding the referral fee Amazon charges. Find out for your specific purchases what the Amazon referral fee is and what it is overall. Knowing these costs will help you really greatly. It saves you from getting shocked when you review your payouts and helps you choose the ideal pricing.
Though you cannot escape the connection cost, if you are a knowledgeable seller you may manage it without suffering losses. Long-term success on Amazon depends on understanding the annual adjustments and how to properly figure your profits.
Whether you are launching your first product or expanding your catalogue, your company should consider the referral fee Amazon levies. Tools like Plugbooks can help you keep track of these fees, profits, and margins with ease, so you always stay in control. Keep going and sell better.
Disclaimer
This blog content serves simply for your knowledge. It’s not intended to be legal, financial, or expert tax advice. Before making decisions on their businesses, sellers should consult experts and review official, current information on fees on Amazon Seller Central.
FAQs
1. What is referral fee Amazon for books?
The whole book cost including shipping has a regular 15% referral fee put on.
2. How much is Amazon’s apparel advertising cost?
More than in many other departments, clothes, shoes, and accessories have a 17% referral fee.
3. On Amazon, what is a phone and tablet promotion fee?
Electronics is one of the few groups with a lower referral fee 8%, which helps increase margins.
4. How much is the referral fee if I sell on Amazon via FBA?
Whether you use FBA or perform fulfillment on-site, the referral fee remains similar. They charge varied rates for fulfillment.
5. Is there any way to have Amazon charge me less for recommendations?
No, the kind of product determines the referral fees; they cannot be altered for every single consumer.