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Fees and margin

Where your Amazon margin actually goes

Every deduction between the price a buyer pays and the money that reaches you, in the order it comes out.

On this page

In short

  • The referral fee is the one everyone knows and rarely the one that hurts.
  • Storage and returns are where margin quietly disappears.
  • You cannot price for Amazon until you have counted all of it.

What comes out, and in what order?

Referral fee, fulfilment, storage, returns processing, then advertising. Each one is small and they are not small together.

Most brands price for the referral fee and get caught by everything after it.

What can you actually change?

Packaging size, return rate and which products you back. The fee schedule is not negotiable.

Picture of Max Kanter

Max Kanter

Max started out selling on Amazon himself before co-founding The Launchworks. He looks after the technical side of the agency, building the plans and systems behind every account we work on.

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Keep reading

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