Starting an Amazon business can cost less than opening a physical store, but selling on the platform is not free. You may need to pay for a selling plan, referral fees, inventory, fulfillment, storage, advertising, product images, software, and other business expenses.
So, how much does it cost to sell on Amazon? A small seller may start with a few hundred dollars, while a private label business may need several thousand dollars to source inventory and launch properly. Your actual cost depends on what you sell, how many products you carry, and whether you fulfill orders yourself or use Fulfillment by Amazon.
Amazon offers an Individual plan that charges $0.99 for every item sold and a Professional plan that costs $39.99 per month, before other selling fees. Referral fees also apply to each sale and vary by product category.
This guide explains the main Amazon seller fees, monthly costs, FBA expenses, optional services, and startup budgets for US sellers in 2026.
Key Takeaways
- The Individual plan charges $0.99 per product sold and has no monthly subscription.
- The Professional plan costs $39.99 per month, plus other selling fees.
- Amazon charges a referral fee on each sale, based on the product category.
- FBA sellers pay fulfillment and storage fees in addition to normal selling fees.
- Advertising, inventory, photography, packaging, and software can add to the total cost.
- There is no single fixed startup amount that works for every Amazon business.
- Sellers should calculate profit per unit before ordering inventory or launching ads.
How Much Does It Cost to Sell on Amazon?
There is no single price because Amazon sellers use different business models.
At a minimum, you normally pay:
- A selling plan fee
- A referral fee on each sale
- The cost of purchasing or producing your product
- The cost of shipping orders to customers
Additional expenses may include:
- FBA fulfillment fees
- FBA storage fees
- Advertising
- Returns
- Product photography
- Branding and packaging
- Research or management software
- Trademark registration
- Third-party services
Amazon explains that its standard charges are divided into selling plan fees and referral fees. Sellers may then pay optional costs for programs such as FBA or Amazon Ads.
A new seller testing a few products could begin with a limited budget. A private label seller ordering custom inventory will usually need much more capital.
Amazon Individual vs Professional Selling Plans
Amazon offers two main selling plans in the United States.
Individual Selling Plan
The Individual plan has no fixed monthly subscription. Instead, Amazon charges $0.99 for each product sold, in addition to referral fees and any other applicable charges.
This plan may suit sellers who:
- Expect to sell fewer than 40 products per month
- Are testing Amazon for the first time
- Have a small number of products
- Do not need advanced selling tools
- Do not plan to run large advertising campaigns
For example, selling 20 items would result in $19.80 in per-item plan fees.
Professional Selling Plan
The Professional plan costs $39.99 per month, plus referral fees and other applicable charges.
It is normally better for sellers who:
- Plan to sell more than 40 items per month
- Want to advertise through Amazon
- Need advanced reports and selling tools
- Manage several products
- Want to build a serious brand
- Need access to more selling features
Which Amazon Selling Plan Is Cheaper?
The simple break-even point is around 40 units per month:
- 39 sales on the Individual plan cost $38.61 in per-item fees.
- 40 sales cost $39.60.
- 41 sales cost $40.59.
At that point, the $39.99 Professional subscription generally becomes more economical based only on plan fees. However, features and advertising access may make the Professional plan useful even before you reach 40 monthly sales.
How Much Does It Cost to Sell on Amazon Per Month?
Your monthly cost depends on sales volume, inventory, product size, fulfillment method, and marketing activity.
Here is a planning example:
| Monthly expense | Possible cost |
| Individual or Professional plan | $0.99 per sale or $39.99 per month |
| Referral fees | Percentage of each sale |
| Inventory | $200 to $10,000+ |
| FBA fulfillment | Based on each unit’s size and shipping weight |
| FBA storage | Based on storage volume and time of year |
| Advertising | $100 to $5,000+ |
| Seller software | $0 to $500+ |
| Photography and design | One-time or ongoing |
| Returns and damaged stock | Varies |
| Shipping inventory to Amazon | Varies |
The figures above are planning ranges, not fixed Amazon prices. A reseller testing a few products may spend only a few hundred dollars, while a growing brand may spend thousands every month.
When estimating how much does it cost to sell on Amazon per month, separate fixed costs from variable costs.
Fixed costs may include:
- Professional account subscription
- Software subscriptions
- Bookkeeping
- Staff or agency retainers
Variable costs may include:
- Referral fees
- FBA fulfillment
- Storage
- Advertising
- Inventory
- Returns
- Shipping
Variable expenses rise or fall based on the number of units you sell and store.
Amazon Referral Fees Explained
Amazon charges a referral fee when a product sells. The percentage varies by product category and may also depend on the item’s total sale price.
Many categories commonly fall within an 8% to 15% range, but sellers should always check the official category fee schedule before pricing a product.
The referral fee is generally calculated using the total sale price, which may include:
- Product price
- Shipping charges
- Gift wrapping charges
Taxes collected through Amazon’s tax calculation services are generally treated separately.
Referral Fee Example
Suppose you sell a product for $30 in a category with a 15% referral fee:
$30 × 15% = $4.50
Amazon would charge a $4.50 referral fee before fulfillment, advertising, inventory, and other costs.
If your product costs $9 to source and another $6 to fulfill, your estimated amount before advertising and other expenses would be:
$30 – $4.50 – $9 – $6 = $10.50
This is why sellers must calculate every major fee before choosing a product.
Amazon FBA Fees Explained
Fulfillment by Amazon allows sellers to send inventory to Amazon fulfillment centers. Amazon can then store products, pick and pack orders, ship purchases, provide customer service, and process eligible returns.
FBA is optional, and its costs are added to your normal selling plan and referral fees. Amazon provides a Revenue Calculator that lets sellers compare estimated FBA expenses with self-fulfillment costs.
FBA Fulfillment Fees
Amazon charges a fulfillment fee for each unit shipped through FBA.
The amount depends on factors such as:
- Product dimensions
- Shipping weight
- Size tier
- Product type
- Whether the item falls under special handling rules
Small, lightweight products normally cost less to fulfill than large or heavy products.
Before ordering inventory, enter accurate dimensions and weight into Amazon’s Revenue Calculator. A small packaging change can sometimes move a product into a different size tier and affect profit.
Monthly Inventory Storage Fees
FBA storage fees are based on how much space your products occupy in Amazon’s fulfillment centers.
Storage costs can change based on:
- Product size
- Number of units stored
- Time of year
- How long inventory remains in storage
- Storage utilization
Storage usually becomes more expensive during the busy holiday period when warehouse space is in higher demand.
Is There an Amazon FBA Monthly Fee?
The phrase Amazon FBA monthly fee can be confusing.
Amazon does not charge one flat monthly FBA subscription that covers all fulfillment. Instead, FBA sellers usually pay a combination of:
- Per-unit fulfillment fees
- Monthly inventory storage charges
- Inbound shipping costs
- Possible inventory surcharges
- Removal or disposal fees
- Return-related costs in applicable categories
The $39.99 Professional plan is a selling account subscription, not an all-inclusive FBA payment.
Low-Inventory-Level Fee
Amazon may apply a low-inventory-level fee to eligible standard-size products when inventory levels remain low compared with customer demand. Amazon announced rate and policy changes for this fee effective January 15, 2026.
The purpose is to encourage sellers to maintain enough inventory to meet expected demand. However, holding too much inventory can create storage and aged-inventory costs, so sellers need balanced stock planning.
Aged Inventory Surcharge
Products that remain in Amazon fulfillment centers for a long time may incur an aged inventory surcharge.
Amazon announced updated rates for inventory aged 366 days or more, effective January 16, 2026.
Slow-moving inventory can damage profit because you may pay for:
- Normal monthly storage
- Aged inventory surcharges
- Removal or disposal
- Discounting to clear stock
Track inventory age and create a plan before products become expensive to store.
Inbound Placement and Shipping Costs
You must also account for the cost of sending products to Amazon.
Expenses may include:
- Freight from your supplier
- Customs and import duties
- Preparation and labeling
- Shipping to fulfillment centers
- Inbound placement services
- Product inspections
These expenses are easy to overlook because they occur before the product is sold.
Amazon FBM Costs Explained
Fulfilled by Merchant, or FBM, means you store products and ship orders yourself or use another fulfillment company.
FBM sellers still pay their selling plan and referral fees. However, instead of FBA charges, they manage their own fulfillment costs.
Common FBM expenses include:
- Warehouse or storage space
- Boxes and packing material
- Shipping labels
- Carrier charges
- Employees or fulfillment labor
- Customer service
- Return processing
- Order management software
- Third-party logistics fees
FBM is not automatically cheaper than FBA.
It may make sense for:
- Large or bulky products
- Slow-selling products
- Made-to-order items
- Businesses with existing warehouse operations
- Products needing special handling
FBA may be easier for businesses that want Amazon to handle daily logistics. The right choice depends on product size, sales volume, storage needs, and your existing operations.
Product Sourcing and Inventory Costs
For many sellers, inventory is the largest startup expense.
The cost depends on your business model.
Retail or Online Arbitrage
Arbitrage sellers buy discounted products and resell them on Amazon.
Possible starting costs include:
- $100 to $1,000+ for initial inventory
- Product research tools
- Packaging
- Shipping to customers or Amazon
This model may require less starting capital, but sellers must carefully check product restrictions, demand, competition, and profit margins.
Wholesale
Wholesale sellers purchase branded products in bulk from distributors or manufacturers.
Possible expenses include:
- Minimum order quantities
- Supplier deposits
- Freight
- Product preparation
- Insurance
- Resale certificates and business setup
Wholesale inventory may start at several hundred dollars, but established suppliers may require larger orders.
Private Label
A private label seller creates or customizes a product under their own brand.
A complete Amazon private abel launch may include:
- Product samples
- Initial inventory
- Custom packaging
- Logo and brand design
- Product photography
- Quality inspections
- Freight and customs
- Trademark registration
- Advertising
- Listing content
Private label often requires more capital than arbitrage, but it can give sellers greater control over branding, pricing, and long-term growth.
Other Costs Amazon Sellers Should Plan For
Amazon platform fees are only part of your total business expense.
Product Samples
Samples help you check product quality before making a large order.
You may pay for:
- Sample units
- Express shipping
- Product testing
- Packaging samples
- Revisions
Skipping samples can lead to poor reviews, returns, and unsellable inventory.
Product Photography
Customers cannot inspect products in person, so images play a major role in conversion.
Professional photography may include:
- Main product images
- Lifestyle images
- Infographics
- Comparison graphics
- Packaging photos
- Video content
Costs depend on the product and the number of assets required.
Branding and Packaging
Private label sellers may need:
- Logo design
- Packaging design
- Labels
- Inserts
- Barcodes
- Product instructions
- Compliance markings
Better packaging can strengthen the customer experience, but every extra feature affects unit cost.
Trademark and Brand Registry
Amazon Brand Registry does not generally charge an enrollment fee, but your brand must meet Amazon’s eligibility requirements. Trademark filing, legal support, and brand design can still create costs.
Brand Registry may provide access to tools such as enhanced brand content, brand protection features, and branded storefront options.
Listing Copy and A+ Content
Strong listing content helps explain your product, answer customer questions, and support conversion.
Professional Amazon A+ content can include:
- Brand story sections
- Enhanced product images
- Feature modules
- Comparison charts
- Product education
- Cross-selling opportunities
Amazon reports that Basic A+ Content can help increase sales by up to 8% in certain cases, although results vary by product and execution.
Amazon Advertising
Many sellers use Sponsored Products or other Amazon advertising formats to increase visibility.
There is no fixed PPC price. Advertising cost depends on:
- Keyword competition
- Product category
- Bid amount
- Conversion rate
- Daily budget
- Campaign structure
- Seasonality
Professional Amazon PPC services may add a management cost, but proper campaign control can reduce wasted spend and improve the use of your advertising budget.
Amazon Seller Software
Optional tools can help with:
- Product research
- Keyword research
- Inventory planning
- Repricing
- Profit tracking
- Review monitoring
- PPC management
- Competitor research
Monthly subscriptions can range from free plans to hundreds of dollars, depending on the platform and number of products.
Account Management and Automation
Running an Amazon business requires ongoing work, including:
- Listing updates
- Inventory monitoring
- Customer support
- Advertising
- Competitor tracking
- Reporting
- Account health management
Sellers may handle these tasks themselves, hire staff, work with an agency, or invest in best Amazon automation support. Management costs should be compared with the time saved and the value of professional execution.
Example Amazon Startup Budgets
The following examples are planning models, not guaranteed requirements.
Budget 1: Small Reseller Testing Amazon
| Expense | Example amount |
| Individual selling plan | $0 upfront |
| Initial inventory | $250 |
| Packaging and labels | $50 |
| Shipping | $75 |
| Basic software | $0 to $50 |
| Advertising | $0 to $100 |
| Estimated starting budget | $375 to $525 |
This approach may work for testing a small number of products, but the seller still needs enough cash to replace sold inventory.
Budget 2: New FBA Seller
| Expense | Example amount |
| Professional plan | $39.99 |
| Initial inventory | $1,000 |
| Samples | $100 |
| Shipping to Amazon | $250 |
| Packaging and labels | $100 |
| Photography | $300 |
| Advertising | $500 |
| Software | $100 |
| Estimated starting budget | About $2,390 |
Actual FBA costs will depend on the product’s dimensions, weight, category, and inventory level.
Budget 3: Private Label Brand
| Expense | Example amount |
| Professional plan | $39.99 |
| Product development and samples | $500 |
| Initial inventory | $4,000 |
| Branding and packaging | $700 |
| Freight, customs, and inspection | $1,200 |
| Photography and listing content | $800 |
| Trademark and business setup | $500+ |
| Launch advertising | $1,500 |
| Software and other costs | $300 |
| Estimated starting budget | About $9,540+ |
Some private label products can launch for less, while products with high minimum orders, expensive materials, or compliance requirements may cost much more.
Hidden Amazon Selling Costs
Unexpected expenses can quickly reduce your margin.
Returns and Refunds
Returns may create costs through:
- Refund processing
- Damaged products
- Unsellable inventory
- Return shipping
- Inspection
- Disposal or removal
Return rates vary by category, so use realistic assumptions when forecasting profit.
Damaged or Lost Inventory
Products can be damaged during manufacturing, freight, storage, or delivery.
Build a small loss allowance into your budget instead of assuming every unit will sell at full price.
Inventory Removal and Disposal
If stock does not sell, you may need Amazon to return, liquidate, or dispose of it. Each option can create additional charges.
Seasonal Storage
Storing too much inventory during high-demand periods can increase warehousing costs. Send enough stock to avoid running out, but do not treat Amazon fulfillment centers as permanent low-cost storage.
Advertising Waste
Poor keyword targeting can generate clicks without sales.
Monitor:
- Advertising Cost of Sales
- Total Advertising Cost of Sales
- Conversion rate
- Search term performance
- Profit after ad spend
Pattern explains ACoS as ad spend divided by advertising sales. For example, spending $84 to generate $300 in ad sales creates a 28% ACoS.
Cash Flow Gaps
You often pay suppliers, freight companies, and advertisers before receiving all sales proceeds.
A profitable product can still create cash flow problems when:
- Inventory takes months to produce
- Shipping is delayed
- Sales rise quickly
- You need to reorder before receiving payouts
- Returns increase
Keep working capital available for reorders and unexpected expenses.
How to Calculate Amazon Profit Per Unit
Use this basic formula:
Selling price – Amazon referral fee – fulfillment cost – product cost – shipping – advertising – other unit costs = estimated profit
Example
Assume you sell a product for $35:
| Cost | Amount |
| Sale price | $35.00 |
| Referral fee at 15% | -$5.25 |
| FBA fulfillment estimate | -$5.50 |
| Product cost | -$9.00 |
| Freight and preparation | -$2.00 |
| Advertising per sale | -$4.00 |
| Returns and overhead allowance | -$1.25 |
| Estimated profit | $8.00 |
Estimated margin:
$8 ÷ $35 × 100 = 22.9%
Do not rely on revenue alone. A product generating $20,000 in monthly sales can still lose money if fees, advertising, and inventory costs are too high.
Amazon’s Revenue Calculator can help compare estimated FBA and merchant-fulfilled costs before launch.
How to Reduce Amazon Selling Costs
Choose Products With Enough Margin
Calculate all likely costs before ordering inventory.
Include:
- Referral fee
- Fulfillment
- Storage
- Product cost
- Freight
- Advertising
- Returns
- Software
- Taxes and overhead
A product with strong sales demand is not automatically profitable.
Reduce Package Size and Weight
Packaging affects shipping and FBA fee tiers.
Remove unnecessary space while still protecting the product. Even a small reduction may improve per-unit economics.
Manage Inventory Carefully
Use sales history and lead times to decide how much inventory to send.
Avoid:
- Long stockouts
- Excess storage
- Aged inventory
- Emergency air freight
- Reordering too late
Improve Conversion Rate
A listing that converts better can create more sales from the same amount of traffic.
Improve:
- Main image
- Title
- Bullet points
- Product description
- Price
- Reviews
- A+ Content
- Video
- Product offer
Review PPC Search Terms
Pause or reduce bids on search terms that spend money without generating profitable sales.
Move strong search terms into focused campaigns and continue testing bids, match types, and product targeting.
Use Amazon’s Fee Calculator
Check fees before sourcing a product and again when packaging, dimensions, costs, or prices change.
Amazon’s calculator lets sellers compare Amazon fulfillment with their own fulfillment method.
Build the Store Correctly From the Start
Professional Amazon store creation can reduce costly mistakes involving category selection, listing structure, branding, inventory setup, and launch planning.
Is Selling on Amazon Worth It in 2026?
Selling on Amazon can still be worthwhile when the product has healthy demand, enough margin, reliable inventory, and a clear marketing plan.
Amazon gives sellers access to a large customer base and provides optional services for fulfillment, advertising, analytics, and brand building. However, competition and fees mean sellers cannot depend on revenue alone.
Amazon may be suitable when you can:
- Source a reliable product
- Maintain enough profit after all costs
- Keep inventory available
- Build a strong listing
- Manage advertising carefully
- Follow marketplace policies
- Reinvest in stock and growth
It may not be the right option when:
- Your margin is already very small
- Your item is expensive to store or ship
- You cannot afford initial inventory
- You have no cash reserve for reorders
- Your category has high returns
- You have not validated demand
The best decision comes from building a complete profit forecast before launching.
Frequently Asked Questions
How much money do I need to start selling on Amazon?
A small reseller may begin with a few hundred dollars. A new FBA business may need $1,500 to $3,000 or more, while a private label launch may require several thousand dollars. Your product, order quantity, shipping, branding, and advertising plan determine the actual amount.
Can I sell on Amazon without paying a monthly fee?
Yes. The Individual plan has no monthly subscription, but Amazon charges $0.99 for each product sold, plus referral fees and any other applicable costs.
What is Amazon’s $39.99 charge?
The $39.99 charge is the monthly subscription for a Professional selling account in the United States. Referral fees, fulfillment, storage, advertising, and other expenses are separate.
Does Amazon charge a listing fee?
Amazon’s main standard charges are the selling plan fee and referral fees. Additional charges may apply when sellers use optional services or programs. Review the current pricing page for your product category and account type.
What percentage does Amazon take from a sale?
The total percentage varies. Referral fees depend on product category, while FBA, advertising, storage, refunds, and optional services can increase the total cost. Many referral fees are commonly between 8% and 15%, but some categories follow different rates or pricing tiers.
Is FBA cheaper than FBM?
It depends on the product and your operations. FBA may be cost-effective for businesses that do not have their own storage and shipping systems. FBM may work better for large, slow-moving, customized, or special-handling products. Compare both options using accurate product data.
Do I need an advertising budget?
Advertising is optional, but many new products need paid visibility during launch. Start with a controlled budget, monitor profit after ad spend, and increase spending only when campaigns produce useful results.
How much should I spend on Amazon PPC?
There is no fixed amount. Your budget should reflect product margin, keyword costs, conversion rate, sales goals, and available cash. A smaller seller might begin with a limited daily test budget, while an established brand may invest thousands per month.
Are Amazon fees tax-deductible?
Many ordinary business expenses may be deductible for US businesses, but tax treatment depends on your business and records. Consult a qualified tax professional for advice based on your situation.
Final Thoughts
So, how much does it cost to sell on Amazon? The Professional plan is $39.99 per month, while the Individual plan charges $0.99 per item sold. However, your real budget must also include referral fees, fulfillment, storage, inventory, shipping, advertising, returns, and business operations.
The safest approach is to calculate profit for each unit before buying stock. Use realistic estimates, include a reserve for unexpected costs, and compare FBA with self-fulfillment.
Ecom Eternals supports sellers with Amazon store creation, best Amazon automation, Amazon private label, Amazon A+ content, and Amazon PPC services. With the right product, accurate cost planning, and ongoing optimization, you can build an Amazon business that focuses on profit instead of sales numbers alone.