How much does selling on Amazon really cost in 2026?

Last updated: 19/10/2026

Selling on Amazon may look attractive from the perspective of turnover alone. The problem arises when a business tries to answer the more important question: how much of that revenue actually remains after accounting for all costs?

The mere difference between the purchase price and the selling price is not enough to assess profitability. The calculation must account for Amazon fees, logistics, and advertising, as well as costs related to taxes, compliance, and managing the entire channel.

Only then can you truly assess whether selling on Amazon is genuinely worthwhile.

Table of contents:

1. Amazon fees are just the beginning

2. FBA is more than just shipping costs

3. Advertising directly impacts your margin

4. International selling means additional costs

5. The cost of sales management

6. So how much does selling on Amazon really cost?

7. FAQ - Frequently Asked Questions

You can read this article in 5 minutes.

Amazon fees are just the beginning

The first group of costs consists of fees directly associated with running a sales operation on the platform. In the case of a Professional account, you need to factor in a monthly subscription fee of around €39 or £30 net per month, depending on the marketplace. On top of this comes the Referral Fee (sales commission). Its rate depends, among other things, on the product category and usually stands at around 8–15% of the transaction value. In practice, this means that a portion of every product's sale price goes straight to Amazon.

For example: with a selling price of €100 and a commission rate of 15%, the Referral Fee alone accounts for a cost of €15. And that is still without factoring in FBA, advertising, storage, taxes, or account management costs.

At this stage, you should already be looking not at turnover, but at what margin remains after deducting basic platform fees.

FBA is more than just shipping costs

If you use Fulfilment by Amazon, logistics costs become another significant item. These cover order handling, item picking and packaging (i.e. Pick & Pack), as well as storage. The level of fulfilment fees depends, among other factors, on the dimensions and weight of the product. 

However, the cost of FBA does not end with the fee for fulfilling a single parcel. Amazon also charges monthly storage fees, the amount of which depends on the space occupied by the inventory, notably calculated per m³. Therefore, it is not just the quantity of products in the warehouse that matters, but above all their turnover rate.

Products that remain in Amazon fulfilment centres for too long can generate additional costs in the form of an Aged Inventory Surcharge. This means that a product might have a good margin at the point of sale, but lose it through sluggish inventory turnover and mounting storage costs. On the other hand, maintaining too low an inventory level — resulting in the Low-Inventory Cost Coverage Fee — can also erode sales profitability. Therefore, inventory management is directly tied to profitability.

On the one hand, excessive inventory can generate storage costs and aged inventory surcharges. On the other, stock levels that are too low can also drive up the cost of sales. A product can therefore sell well and yet see its margin slip away due to poorly planned inventory levels.

Advertising directly impacts your margin

Another major cost category is Amazon Ads. Sponsored Products, Sponsored Brands, or Sponsored Display can bolster sales and product visibility, but they also represent a tangible cost of acquiring revenue. It is not enough simply to observe the sales generated by campaigns. You need to monitor metrics such as ACoS and TACoS and analyse how ad spend affects the overall profitability of the product. ACoS shows the share of advertising spend relative to sales directly attributed to the campaign.

If campaigns have generated €10,000 in sales and ad spend was €2,500, the ACoS is 25%. However, this figure alone does not answer the question of whether the advertising is profitable.

If a product's margin before advertising is lower than the cost of acquiring the sale, you may be increasing turnover whilst simultaneously deteriorating your bottom line.

TACoS provides a broader view because it measures advertising costs against total sales, rather than solely against revenue attributed to ads. This makes it easier to evaluate how heavily a product or brand’s performance relies on paid traffic.

Advertising should therefore be evaluated not only through the lens of traffic or order volume, but also by how much margin remains after paying for it. It is entirely possible to increase sales while diminishing real profit.

That is why professional Amazon Ads management should focus not only on driving sales, but also on controlling campaign costs and their impact on product margins.

International selling means additional costs

Expanding to further Amazon marketplaces increases business scale, but at the same time complicates its cost structure.

Depending on the sales model, expenses related to VAT, OSS, EPR, WEEE, or packaging compliance obligations may arise. Every additional marketplace can therefore bring not only new sales potential, but also added tax, administrative, and compliance costs.

In addition, there are financial costs such as:

• currency conversion fees,

• exchange rate spreads,

• fund transfers between different currencies and marketplaces.

Each of these items might seem small on its own. At scale, however, they start to exert a substantial impact on final profitability. Cross-border sales growth should therefore not be judged purely on additional revenue; you must also factor in the cost of entering and maintaining presence in those additional markets.

This is precisely why cross-border selling on Amazon should start with a profitability analysis of individual markets, accounting for logistics, taxes, compliance, and potential margins.

The cost of sales management

A cost that is frequently overlooked in calculations is managing the Amazon channel itself. Selling requires work connected with listings, advertising, logistics, data analysis, account maintenance, and compliance, among other tasks.

Comprehensive Amazon management requires competencies across several disciplines, including:

• PPC,

• SEO and copywriting,

• graphic design,

• Compliance,

• customer service.

On top of this come the software tools used for analysis and sales management, such as Helium 10 or SellerBoard.

A business can either develop these competencies in-house or rely on the support of an external partner.

With an in-house team, you should not simply look at one person's salary. The true cost must encompass the entire suite of skills, tools, and processes required to operate and expand sales.

Such an in-house model generally only becomes economically viable at very large scales, above roughly €10 million in annual turnover.

When working with an agency, on the other hand, the cost may include a retainer fee alongside a Success Fee, which is performance-based remuneration.

Comparing an agency fee with a single employee’s salary therefore does not provide the full picture. You must compare the cost of the entire sales management system.

An alternative to building all these competencies in-house is end-to-end Amazon sales management, covering the coordination of advertising, operational activities, and sales growth strategies.

So how much does selling on Amazon really cost?

A complete calculation should factor in:

• product cost,

• Amazon referral fee, typically around 8–15% depending on the category,

• around €39 or £30 net per month for a Professional account,

• FBA and Pick & Pack fees,

• storage fees,

• Aged Inventory Surcharge,

• Low-Inventory Cost Coverage Fee,

• Amazon Ads spend,

• tax and compliance costs, including VAT, OSS, EPR, WEEE, and packaging regulations,

• currency conversions, spreads, and transfer fees,

• tools such as Helium 10 or SellerBoard,

• the cost of an in-house team or an external agency managing your sales.

Only after deducting all these components from gross revenue can you see your true profitability. This is especially vital when sales are expanding, yet the business sees no proportional rise in profits.

The issue may not stem from product pricing. It might lie in FBA fees, slow inventory rotation, an excessively high ACoS, additional costs linked to international expansion, or an account management overhead that was never factored into product unit economics.

Amazon should therefore be analysed not merely as a revenue-generating channel, but as a complete business model in which profitability hinges on multiple interconnected factors. Only a comprehensive cost calculation reveals how much of that revenue truly remains.

FAQ - Frequently Asked Questions

1. How much does it cost to start selling on Amazon?

The cost of starting to sell depends on the chosen plan, product categories, fulfilment method, and the marketplaces in which you plan to operate. You need to factor in seller account fees, Amazon referral fees, listing preparation, logistics, and potential advertising spend. When expanding abroad, tax and compliance costs may also come into play.

2. What commission does Amazon charge on product sales?

Amazon's commission, known as the Referral Fee, depends on the product category and the specific marketplace rules. In many categories, it sits at around 8–15% of the sale value, although other rates may apply. When calculating profitability, always consult the current fee schedule for your specific category.

3. What additional costs are involved in using Amazon FBA?

Beyond the order fulfilment fee, Amazon FBA incurs product storage costs. In certain scenarios, additional fees may apply for long-term inventory storage or inadequate stock levels. FBA costs should therefore be analysed in conjunction with stock turnover and inventory forecasting.

4. Is selling on Amazon viable with low profit margins?

Selling low-margin products can be difficult to sustain, especially once Amazon referral fees, FBA charges, and advertising spend are added. However, viability depends on your overall cost structure, retail pricing, and business scale. Every product should have its profitability assessed individually after accounting for all relevant expenses.

5. What is the difference between ACoS and TACoS in Amazon advertising?

ACoS reflects the ratio of ad spend to sales directly attributed to advertising, whereas TACoS measures that spend against total sales. The first metric helps assess campaign efficiency, while the second illustrates how heavily your overall revenue relies on advertising spend. Neither replaces a full product margin analysis.

6. What hidden costs arise when selling on Amazon in Europe?

International sales can trigger extra costs related to VAT registrations and filings, EPR and WEEE obligations, packaging directives, and administrative maintenance across different markets. Currency conversions, spreads, and transfer fees are also key factors. Their combined impact can considerably erode cross-border profitability.

7. How much does it cost to hire an agency for Amazon management?

The cost of working with an agency depends on the scope of work, the number of marketplaces, catalogue size, and the billing model. Fees typically include a fixed monthly retainer and a performance-based Success Fee. When comparing an agency with an in-house team, be sure to account for all the skills and software tools required to run the sales channel.

8. How do you calculate actual profit from Amazon sales?

To calculate real profit, deduct the cost of goods sold, Amazon referral fees, logistics, storage, advertising, management costs, and any other sales-related outlays from your net revenue. Tax liabilities must also be accurately accounted for. It is best practice to run this calculation on a per-product and per-market basis.