Understanding Amazon Fees

Understanding all the Amazon fees

On Amazon invoices it can often happen that we find a fee that is not perfectly self-explaining. In this article we will give you an overview of all the fees and commissions that Amazon charges to its sellers for the many services they offer.

1 Commissions

In this first section we will take a look at the commissions for all the types of services Amazon offers the seller.

1.1 Commissions on sales

Referral Fee | Commission:
This is the commission that Amazon detracts on each sale just for letting you place your ad on the platform.
The amount withheld depends on the category of the product, and usually represents 15% of the purchase price with a minimum of 0,30€.
Click on the seller central link below to discover how much it is for each category:

Referral fees on Amazon

RefundCommission:
In case of returns Amazon refunds only a percentage of the referral commission previously debited for the same sale, and withholds the RefundCommission.

FixedClosingFee | VariableClosingFee:
This is an additional referral commission on multimedia products such as books, DVD’s, Video Games and Music.

HighVolumeListingFee:
This commission is charged to sellers who have exceeded the allowance for published ads. In Europe the allowance is 2 million SKU’s.

SalesTaxCollectionFee:
This fee is charged for the tax-collection service relatively to the application and remission of the Sale Tax (Only for the US marketplace).

Subscription:
Cost of subscription to Amazon’s Pro seller account at €39/month

ShippingHB:
This is the referral fee applied on the cost of the shipping when handled by the seller through FBM.

GiftWrapCommission:
This is the referral fee applied on the cost of the gift package when handled by the seller in FBM.

RunLightningDealFee:
Commission applied for the creation of a lightning deal.

CouponClipFee | CouponRedemptionFee:
Commission applied for the redemption of a coupon.
Amazon debits this commission for making the coupon visible on the offered product. The commission has a fixed price of 0,60€ per each redeemed coupon, and is due regardless of whether the customer that has redeemed it completes the purchase or not.

1.2 Logistics commissions

GiftwrapChargeback:
When the product is handled in FBA, the buyer pays the price of the gift package to the seller, but since it’s actually done by Amazon, the cost of the packaging will be charged back to the seller by Amazon.

ShippingChargeback:
When the product is handled in FBA, the buyer pays the shipping costs to the seller, but since the shipping is actually carried out by Amazon, the equivalent cost will be debited back to the seller.

Fulfillment by Amazon Fee | FBA Pick & Pack Fee | FBAPerOrderFulfillmentFee | FBAPerUnitFulfillmentFee | FBAWeightBasedFee:
Commission applied for Amazon Logistics services that include packaging, delivery, handling returns and support.
Visit the following link to get the updates on these fees:

FBA commissions on Amazon

FulfillmentNetworkFee:
Additional commission for international shipment. For example, if a product is purchased by a customer in Germany and gets shipped from an FBA warehouse located in Italy.

FBAStorageFee:
Commission for storing products in Amazon Logistics warehouses. The price is charged by the month according to the average volume occupied by the products in the warehouse during the period.
Click on this link to see the updated prices:

Storage fees

FBALongTermStorageFee:
This commission is applied to products remaining in the Amazon warehouse for more than 365 days.
Visit this link for the updated rates:

Long-term storage fees

FBAOverageFee:
This commission is applied whenever your inventory exceeds the maximum storage volume allowed during an established period of time.
Check out this link to get the updated fees:

Storage limits

FBARemovalFee:
Commission for the removal of inventory which is no longer sellable.
Go to this link to see the updated fees:https://www.zonwizard.com

Removal fees

FBADisposalFee:
Commission for destroying all the unsellable inventory.

LabelingFee:
Commission applied for labelling the products.

OpaqueBaggingFee:
Commission applied for opaque bagging the products.

PolybaggingFee:
Commission applied for transparent bag packaging.

TapingFee:
Commission applied for taping the package.

BubblewrapFee:
Commission applied in case of packaging with bubblewrap.

FBAInboundTransportationFee | FBA Fees | FBAInboundTransportationProgramFee | FBATransportationFee | TransportationFee:
Fees for transportation of goods to Amazon FBA warehouses.

FBAInboundDefectFee:
Commission for processing inbound goods arriving at Amazon warehouses requiring unexpected preparation.

1.3 Refunds

FBAInventoryReimbursement:
This type of refund is issued for goods that are lost, damaged or missing. Amazon has even designated more specific categories for each of these events.
MISSING_FROM_INBOUND: Products missing from inbound stock of goods
LostOrDamagedReimbursement: Lost or damaged products
WAREHOUSE_DAMAGE: Products damaged in warehouse
WAREHOUSE_LOST_MANUAL: Products lost in warehouse
INBOUND_CARRIER_DAMAGE: Products damaged on incoming carrier
REMOVAL_ORDER_DAMAGED: Product damaged during a removal order

ReimbursementClawback | Clawback | COMPENSATED_CLAWBACK:
This amount debited to the buyer refers to a previous refund that is no longer due. For example, if Amazon has previously issued a refund for having lost some products and these products should later be found, Amazon will take back the amount refunded.

CS_ERROR_ITEMS | CS_ERROR_NON_ITEMIZED | CSErrorNonItemized:
This type of refund is issued following a previous debiting error in order to rectify the mistake.

CRETURN_WRONG_ITEM:
Whenever a customer makes a return but sends back the wrong product Amazon reimburses the seller as if the product has not been returned in the first place.

INCORRECT_FEES_ITEMS | IncorrectFeesNonItemized | INCORRECT_FEES_NON_ITEMIZED | NonSubscriptionFeeAdj | SubscriptionFeeCorrection:
In the event erroneous fees have been previously debited to the seller this type of refund will be issued to rectify the error.

2 Sales-related items

In this second part, we will outline all the items shown in Amazon’s financial reports and relating to the amounts  linked to sales.

2.1 Orders

Principal | litem-price | Product charges: Selling price.
PrincipalTax | Item-tax: VAT on selling price
GiftWrap | gift-wrap-price: Price of the gift package
GiftWrapTax: VAT on price of gift package
ShippingCharge | Shipping | shipping-price: Price of shipping
ShippingChargeTax: Vat on price of shipping

In case the seller uses the VAT calculation service, Amazon effects the extraction and indicates the net amount and VAT amount separately.

2.2 Refunds

Refund: Amount refunded
RefundTax: Vat on refunded amount
ShippingRefund: Amount refunded on shipment
ShippingRefundTax: VAT on refunded shipping amount
Goodwill: “Goodwill” refund, a refund granted to a customer that doesn’t really have the right to it. It is usually granted when the customer is unsatisfied.

3 Conclusion

This overview is surely helpful for a better understanding of the fees that Amazon is charging you.
But if you would prefer to have a complete tool for a clear and in-depth analysis of the revenues, costs and profits of your business activities, come and discover all the features of ZonWizard‘s Pro package.

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