Glossary
Glossary

Referral Fee

The referral fee is the percentage of the sale price Amazon takes on every order, regardless of fulfilment method. It is the marketplace commission, set per category — usually 8–15% — and is the single largest fee for most sellers.

referral feeAmazon commissionAmazon take ratecategory fee

The referral fee is Amazon's marketplace commission — a percentage of the total sale price taken on every order. It applies whether the order ships from FBA, FBM, or SFP. It is set per category and is the largest single fee in most sellers' P&L.

Rates by category (indicative, US)

CategoryReferral fee
Most categories15%
Consumer electronics8%
Computers8%
Cameras8%
Apparel17%
Jewellery5–20% (tiered)
Watches16% (tiered)
Personal care appliances15%
Furniture15% (tiered to 10% above $200)
3D printed products12%

EU markets follow similar percentages with regional variation. Always check the current rate card; Amazon updates periodically.

What the fee applies to

The referral fee is calculated on the total amount charged to the customer — item price plus shipping plus gift-wrap charges. Taxes are excluded.

There is a minimum referral fee of $0.30 per item (US) — applies to very low-priced items where the percentage would be smaller.

Referral fee as the dominant margin lever

For a typical mid-margin physical product:

ASP                €20.00
COGS               -€4.00  (20%)
Referral (15%)     -€3.00  (15%)
FBA fee            -€4.20  (21%)
Storage            -€0.20  (1%)
Ad spend (15% TACOS) -€3.00  (15%)
Gross contribution  €5.60  (28%)

Referral is the second-biggest line after FBA. A category miscategorisation that lands the listing in a 17% tier instead of 15% costs 2% of every euro of revenue — often more than the entire annual ad-tooling spend.

Common mistakes

  • Wrong category. Apparel-adjacent products misfiled as "Home" save 2% on every order; the reverse error costs the same. Audit periodically.
  • Forgetting minimum referral on low-ASP SKUs. A €1.20 single product pays €0.30 minimum, not €0.18.
  • Not modelling referral into price tests. A price cut from €20 to €18 reduces referral from €3.00 to €2.70 — small relief, but it bends the gross margin curve.
  • Ignoring category-fee changes. Annual updates can move 1–3 percentage points.

Related terms

Mentioned in