Vertical Financials
Marketplaces

Referral Fee (Amazon)

Definition

The commission Amazon charges on each sale, a percentage of the sale price that varies by category, often around 15%.

The referral fee applies to every Amazon sale, FBA or not. Together with fulfillment fees, it often takes 30% to 40% of the price.

It is a variable selling cost and belongs in contribution margin. Watch for: pricing decisions made from gross margin alone, which ignore that Amazon takes a cut before you see a dollar.

Example

A $30 kitchen item with a 15% referral fee costs $4.50 per sale before any FBA fees.

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