FBA Calculator UK – Amazon Seller Fee Calculator

Amazon UK charges several fees: a referral fee (percentage of selling price), FBA fulfilment fees (for picking, packing, and shipping), monthly storage fees, and a professional selling plan fee of £25 per month if applicable. Individual sellers pay £0.75 per item instead of the monthly subscription.

The referral fee is calculated as a percentage of the total selling price, including VAT. The percentage varies by product category, typically ranging from 8% to 20%. There is a minimum referral fee of £1.00 for most categories. For example, electronics incur a 15% referral fee, whilst jewellery carries a 20% fee on the first £225 and 5% thereafter.

FBA fulfilment fees are determined by your product’s size tier and weight. Amazon categorises products into envelopes, parcels, and oversize tiers. Lighter and smaller products generally have lower fees. For instance, a small envelope under 80g costs £1.71, whilst a standard parcel over 5kg costs £5.84 or more.

Storage fees increase significantly during the peak season from October to December. Additionally, long-term storage fees apply to inventory stored for over 241 days, with rates escalating every 30 days. After 365 days, the fee reaches £5.71 per cubic foot per month. It’s advisable to maintain lean inventory to avoid these charges.

FBA offers Prime eligibility, better Buy Box chances, and Amazon handles customer service and returns. However, it costs more in fees. FBM gives you more control over fulfilment and lower fees but requires you to manage shipping, returns, and customer service. Low-margin or slow-moving products often suit FBM better, whilst high-volume, fast-selling items benefit from FBA.

Reduce FBA costs by optimising packaging to fit smaller size tiers, managing inventory turnover to avoid long-term storage fees, removing slow-selling stock before day 241, considering the Small and Light programme for eligible products priced under £10, and regularly auditing your inventory to identify overstock situations.

Most successful Amazon sellers target a minimum profit margin of 30-40% after all fees and costs. This provides buffer for returns, advertising costs, and unexpected expenses. Products with margins below 20% are generally considered risky unless you have very high sales volume. Always factor in additional costs like PPC advertising, photography, and brand registry fees.

Yes, this calculator includes VAT at the standard UK rate of 20%. VAT is calculated on the selling price and must be remitted to HMRC. If you’re VAT registered, you’ll collect VAT from customers and pay it to the tax authority. Some product categories have reduced VAT rates, but most Amazon products fall under the standard 20% rate.