Introduction to Amazon UK Fees
Amazon is the largest online marketplace in the United Kingdom, with millions of active buyers and an infrastructure that gives third-party sellers access to a colossal customer base. But that access comes at a cost. Amazon charges a range of fees - referral fees, subscription fees, fulfilment fees, and more - that can significantly erode your profit margins if you don’t understand them.
For sellers operating under the VAT Margin Scheme, getting a firm grip on these costs is even more critical. The Margin Scheme means you’re already paying VAT on the difference between your purchase and selling price, so every additional fee directly compresses your take-home profit. Misunderstanding or underestimating Amazon’s fee structure can turn what looks like a profitable sale on paper into a loss-making one in practice.
Whether you sell second-hand electronics, vintage clothing, collectibles, or any other goods on Amazon UK, this guide walks you through every fee you’ll encounter in 2026. We cover the referral fee model, the two seller plans, the complete category-by-category rate table, and practical strategies for keeping your costs down.
Use this guide alongside our free VAT Margin Calculator to model your true net profit after both Amazon fees and VAT obligations. For eBay sellers, we also have a dedicated eBay UK fees guide.
How Amazon Fees Work
Amazon’s fee structure centres on the referral fee - a percentage-based commission that Amazon takes from every sale you make. Unlike eBay, which layers multiple charges (final value fee, per-order fee, regulatory fee), Amazon bundles its primary selling cost into one referral fee per item. This makes the headline calculation simpler, but the rates themselves vary significantly between categories.
The referral fee is calculated as a percentage of the total sale price, which includes the item price and any delivery charges the buyer pays. Amazon applies a minimum referral fee of £0.25 per item in most categories - so even on very cheap items, you’ll pay at least 25p in referral fees. If the percentage-based fee exceeds £0.25, the higher amount applies.
Referral fees are category-specific. Amazon assigns each product to a category when you list it, and the category determines the percentage rate. Some categories use a flat rate regardless of price, while others apply tiered rates where the percentage changes above a certain price threshold. For example, Jewellery charges 20% on the portion up to £250 but only 5% above that.
Example: You sell a piece of jewellery for £400. The referral fee is (£250 × 20%) + (£150 × 5%) = £50 + £7.50 = £57.50. That’s an effective rate of 14.4% rather than the headline 20%.
On top of referral fees, you may also face fulfilment fees if you use Fulfilment by Amazon (FBA), subscription fees depending on your seller plan, and closing fees on media products. We cover each of these in the sections below.
Individual vs Professional Seller Plans
Amazon UK offers two seller account types, each with its own cost structure. Choosing the right plan depends on your sales volume, the tools you need, and whether you want access to advanced selling features like advertising, bulk listing tools, and the Buy Box.
Individual Plan
£0.75/item
No monthly subscription
- £0.75 per-item fee on every sale
- Plus category referral fee
- No Buy Box eligibility
- No advertising or bulk tools
Professional Plan
£25/month
No per-item fee
- Flat £25/month subscription
- Plus category referral fee only
- Buy Box eligible
- Advertising, reports & bulk tools
The crossover point is straightforward arithmetic. If you sell more than about 34 items per month, the Professional plan is cheaper (34 × £0.75 = £25.50, which exceeds the £25 subscription). But volume isn’t the only consideration - Professional accounts also unlock the Buy Box, Amazon Sponsored Products advertising, inventory reports, and the ability to create new product listings. For any serious seller, the Professional plan pays for itself quickly.
If you’re just starting out or selling fewer than 30 items per month, the Individual plan lets you test the water without a fixed monthly commitment. You can upgrade to Professional at any time as your volume grows.
Amazon UK Referral Fee Table - All Categories (2026)
Below is the complete category-by-category breakdown of Amazon UK referral fees. Where a category uses tiered pricing, the rate changes at the specified threshold. In most categories, a minimum referral fee of £0.25 applies per item. Rates shown exclude VAT.
| Category | Referral Fee | Threshold | Rate Above |
|---|---|---|---|
| Automotive & Powersports | 12% | - | - |
| Baby Products | 8% | £10 | 15% |
| Books, Music, DVD & Video | 15% | - | - |
| Clothing & Accessories | 5% | £15 | 10% / 17%* |
| * 5% up to £15, 10% from £15 to £20, 17% above £20 | |||
| Consumer Electronics / Cameras / Phones | 8% | - | - |
| Furniture | 15% | - | - |
| Grocery & Gourmet | 5% | £10 | 8% |
| Health & Personal Care | 8% | £10 | 15% |
| Home & Kitchen | 8% | £20 | 15% |
| Industrial & Scientific | 12% | - | - |
| Jewellery | 20% | £250 | 5% |
| Musical Instruments | 15% | - | - |
| Office Products | 15% | - | - |
| Personal Computers | 7% | - | - |
| Pet Supplies | 15% | - | - |
| Sports & Outdoors | 15% | - | - |
| Tools & Home Improvement | 12% | - | - |
| Toys & Games | 15% | - | - |
| Watches | 16% | £1,500 | 3% |
| Everything Else | 15% | - | - |
Rates shown are the standard Amazon UK referral fees before VAT. A minimum referral fee of £0.25 applies in most categories. Where a threshold is specified, the lower rate applies up to that price and the higher/lower rate applies above it. Tiered categories like Clothing & Accessories use multiple thresholds as noted. A dash (-) means the flat rate applies to the entire sale amount. Always verify current rates on Amazon Seller Central.
Fulfilment Fees: FBA vs FBM
Beyond referral fees, the biggest cost decision Amazon sellers face is how to fulfil orders. You have two options: Fulfilment by Amazon (FBA), where Amazon stores, picks, packs, and ships your products, or Fulfilment by Merchant (FBM), where you handle everything yourself.
Fulfilment by Amazon (FBA)
- • Pick & pack fee: from ~£1.63 for small/light items up to £5+ for large/heavy items
- • Monthly storage: £0.70-£1.10 per cubic foot (higher Oct-Dec)
- • Long-term storage: surcharges on inventory stored 181+ days
- • Prime badge & faster delivery boost conversions
Fulfilment by Merchant (FBM)
- • No Amazon fulfilment fees - you pay your own postage & packaging
- • Full control over packing, branding, and shipping speed
- • No storage fees - store stock at your own premises
- • Typically no Prime eligibility (unless Seller Fulfilled Prime)
For VAT Margin Scheme sellers dealing in second-hand goods, FBM is often the more practical choice. Your stock is typically unique (one-off items rather than replenishable inventory), which makes FBA’s warehouse model less suited - you’d be constantly sending individual items to Amazon’s fulfilment centres. FBM gives you direct control over inspection, photography, and dispatch without the overhead of FBA storage fees on slow-moving items.
That said, if you sell standardised second-hand goods at volume (e.g., refurbished electronics), FBA can significantly boost your sales through the Prime badge. The key is modelling the full cost - referral fee plus FBA fulfilment fees plus storage - against your margin to see if the higher conversion rate justifies the extra expense. Our calculator can help you run those numbers.
Amazon vs eBay: Fee Comparison
Both platforms charge percentage-based selling fees, but the structures differ considerably. Here’s a side-by-side look at the key differences to help you decide where to list - or whether to sell on both.
| Feature | Amazon UK | eBay UK |
|---|---|---|
| Main selling fee | Referral fee (7-20%) | Final Value Fee (6.9-14.9%) |
| Per-order fixed fee | £0.75/item (Individual only) | £0.30-£0.40/order |
| Subscription | £25/month (Professional) | Free (eBay Store optional) |
| Regulatory/extra fees | None separate | 0.35% regulatory fee |
| Fulfilment option | FBA available (extra cost) | Self-fulfilment only |
| Fee discounts | None standard | Top Rated: -10% FVF |
In general, Amazon’s referral fees tend to be higher than eBay’s FVF rates in many categories, but Amazon doesn’t layer on a separate regulatory fee or per-order charge (for Professional sellers). eBay offers fee discounts through its seller level programme, whereas Amazon’s fees are fixed. Amazon’s primary advantage is its vast Prime customer base and higher average conversion rates.
For a deeper dive into eBay’s fee structure, see our complete eBay UK fees guide. You can also use our marketplace comparison tool to model the same item across both platforms side by side.
Tips for Reducing Your Amazon Fees
Amazon’s fees are non-negotiable at the individual seller level, but there are legitimate strategies to minimise their impact on your bottom line:
Upgrade to the Professional plan early
If you sell more than 34 items per month, the £25 monthly subscription eliminates the £0.75 per-item fee. At 100 items/month, you save £50 compared to the Individual plan. Plus, you gain Buy Box eligibility and advertising tools that can increase your sales volume.
List in the correct category
Referral fees vary significantly between categories. An item listed under “Everything Else” at 15% might legitimately belong in “Consumer Electronics” at 8% or “Personal Computers” at 7%. Check Amazon’s category guidelines and ensure your products are correctly classified.
Leverage tiered referral rates on high-value items
Categories like Jewellery (20% up to £250, 5% above) and Watches (16% up to £1,500, 3% above) become proportionally cheaper for higher-value items. A £2,000 watch pays an effective rate of about 13%, not 16%. Factor this into your pricing strategy and consider focusing on higher-value items in tiered categories.
Optimise FBA inventory to avoid storage surcharges
If you use FBA, monitor your Inventory Performance Index (IPI) score. Long-term storage fees kick in at 181 days and escalate at 365 days. Regularly review your aged inventory and remove or discount slow-moving stock before surcharges apply. Send inventory in smaller, more frequent shipments rather than large batches.
Reclaim VAT on Amazon fees
If you’re VAT-registered, all Amazon fees are subject to 20% VAT - and you can reclaim that input VAT. Download your VAT invoices from Seller Central monthly. This effectively reduces your fee burden by one-sixth. For Margin Scheme sellers who can’t reclaim VAT on stock, reclaiming it on fees is especially valuable.
Sell across multiple channels
Don’t limit yourself to Amazon alone. Some product categories are cheaper to sell on eBay, while others perform better on Amazon. Use our marketplace comparison tool to find the most profitable channel for each product type, and diversify to reduce your dependency on any single platform’s fee changes.
Calculate Your True Costs
Use our free VAT Margin Calculator to see exactly how Amazon referral fees, fulfilment costs, and VAT Margin Scheme obligations affect your net profit on every sale.