The Amazon referral fee is the commission Amazon deducts from every sale you make on their marketplace. It is charged automatically before your earnings are disbursed, and it applies regardless of whether you fulfil orders yourself or use FBA. Understanding it is essential for accurate margin calculations.
What is the Amazon referral fee?
The referral fee is Amazon's charge for providing you access to their marketplace, customer base, and payment infrastructure. It is calculated as a percentage of the total selling price — including any delivery charge passed on to the buyer.
In the UK, the standard referral fee is 15% for most product categories.
Amazon referral fee rates UK (2026)
| Category | Referral fee |
|---|---|
| Baby | 15% |
| Books | 15% |
| Clothing & Accessories | 15% |
| Consumer Electronics | 8% |
| Computers | 8% |
| Garden & Outdoors | 15% |
| Health & Beauty | 15% |
| Home & Kitchen | 15% |
| Jewellery | 20% |
| Kitchen | 15% |
| Music | 15% |
| Office Products | 15% |
| Pet Supplies | 15% |
| Sports & Outdoors | 15% |
| Toys & Games | 15% |
| Video Games | 15% |
Minimum referral fee: Amazon charges a minimum of approximately £0.25 per unit regardless of selling price. This mainly affects very low-priced items.
How the referral fee is calculated
The fee is applied to the total transaction value — item price plus any shipping fee the customer pays. Most FBA sellers include shipping in their listing price and offer free delivery, so the calculation is simply the percentage of the item price.
Example: A toy listed at £22.00 in the Toys & Games category
- Referral fee: 15% × £22.00 = £3.30
Example: Electronics item listed at £45.00
- Referral fee: 8% × £45.00 = £3.60
Referral fee vs FBA fulfilment fee
These are two separate charges that often get confused:
| Fee | What it covers | When it applies |
|---|---|---|
| Referral fee | Amazon's marketplace commission | Every sale, all sellers |
| FBA fulfilment fee | Pick, pack, and ship | FBA sellers only |
If you fulfil orders yourself (FBM), you pay only the referral fee plus your subscription. If you use FBA, you pay both. The referral fee is the same regardless of fulfilment method.
How to factor the referral fee into your margins
When evaluating a product, always deduct the referral fee first, before calculating profit:
Net profit = Selling price − referral fee − FBA fee − cost of goods − advertising
Example: Home & Kitchen product at £30.00
- Referral fee (15%): £4.50
- FBA fee (standard parcel): £3.88
- Cost of goods (landed): £8.00
- PPC estimate: £1.50
- Net profit: £12.12 (40% margin)
If the referral fee tips your margin below 20%, you either need to raise your selling price, find a lower-cost product, or look at a different category.
Can you get a lower referral fee?
No. The referral fee is fixed by category and applies to all sellers. There is no volume discount or negotiation.
The only levers available to you are:
- Choosing products in lower-fee categories (8% for electronics vs 15% for most)
- Pricing your product high enough that the percentage leaves you adequate margin
- Keeping your other costs (COGS, FBA fees, advertising) tightly controlled
A common strategy is to target the £20–£50 price range where the referral fee is high enough to meet Amazon's minimum but the absolute fee amount (£3–£7.50) is manageable relative to the margin available.
Use an FBA fee calculator to see the exact referral fee alongside FBA fulfilment fees for any product before you commit to buying stock.