You can start selling on Amazon for under $500 on the Individual plan, or budget $500 to $2,000 for a proper FBA launch. Ongoing costs include a selling plan ($39.99/mo or $0.99 per item), a referral fee around 15% per sale, FBA fulfillment and storage fees, and ads. Fees scale with sales.
TL;DR
- Two plans: Individual is $0.99 per item sold; Professional is $39.99/mo with no per-item fee.
- Referral fee: roughly 15% of each sale in most categories, taken on the full sale price.
- FBA fees: about $3 to $8 per unit fulfillment, plus monthly storage that spikes in Q4.
- Ads are the variable: budget $300 to $500 to launch and scale from revenue.
- A realistic full startup budget is $500 to $2,000 for most beginners doing FBA.
How much does it cost to sell on Amazon?
You can start for under $500 and scale from revenue, but a realistic FBA launch runs $500 to $2,000 all-in. Amazon has a low financial barrier to entry and a high execution barrier, which is a good thing for beginners: you do not need a big war chest, but you do need to spend what you have wisely.
The costs split into two types. Fixed costs are what Amazon charges to sell: your plan, referral fees, and FBA fees. Variable costs are what you invest to compete: inventory, samples, photography, and ads. According to Amazon Seller Central, the platform itself is inexpensive to join, which is why competition is high. Third-party sellers now account for roughly 60% of the units Amazon sells, per Amazon's own reporting, so the real cost is standing out, not signing up.
Let's break down every line so you can build your own number.
How much is the Amazon monthly selling fee?
Amazon offers two plans, and the right one depends on your sales volume. The Individual plan has no monthly fee but charges $0.99 for every item you sell. The Professional plan costs $39.99 a month with no per-item fee, and it unlocks advertising, Buy Box eligibility, and bulk tools.
The math is simple. If you sell fewer than about 40 units a month, the Individual plan is cheaper. Sell more, and the Professional plan wins, because 40 items at $0.99 already equals $39.60. According to Amazon Seller Central, most serious sellers use Professional because the advertising and Buy Box access it unlocks are effectively required to compete. Beginners often start Individual to test a first product, then upgrade once sales pick up.
What is the Amazon referral fee?
The referral fee is a commission Amazon takes on every sale, usually 15% in most categories. It is charged on the total sale price, including any shipping you charge, and it applies whether you use FBA or ship orders yourself. This is separate from FBA fulfillment and storage fees.
Referral fees vary by category. Most sit at 15%, but some run lower (electronics accessories can be higher, some categories dip to 8%). Per Amazon Seller Central, the referral fee is the single most consistent cost you will pay, and it is why product pricing matters so much. On a $30 sale, a 15% referral fee is $4.50 before you count anything else. Build this into your margin from the start, because it comes off the top of every order.
How much are Amazon FBA fees?
FBA fees are what you pay Amazon to store, pick, pack, and ship your products, and they typically run about $3 to $8 per unit plus storage. There are two main parts: the per-unit fulfillment fee based on size and weight, and monthly storage fees based on the space your inventory occupies.
| FBA fee | Typical amount | Notes |
|---|---|---|
| Fulfillment fee | ~$3 to $8 per unit | Based on size and weight tier |
| Monthly storage | Per cubic foot | Higher October to December |
| Long-term storage | Extra surcharge | Applies to aged inventory |
| Removal / disposal | Per-unit fee | To pull or discard stock |
According to Amazon Seller Central, storage fees rise sharply in Q4 when warehouse space is tight, and long-term storage surcharges hit inventory that sits too long. This is why inventory management matters: overstock costs you in storage, and understock costs you in lost sales and ranking. Oversized and heavy items get expensive fast under FBA, which is why many sellers stick to small, light products.
How much should I budget for ads?
Plan to spend $300 to $500 launching your first product, then scale ad spend from revenue. Advertising is the most variable cost, but it is close to mandatory for new listings, because a product with zero sales has no organic ranking signal. Ads buy the initial visibility that generates the first sales, which then feed ranking.
Amazon Ads notes that click-through and conversion rate feed organic ranking, so early ad-driven sales do double duty: revenue now, plus a ranking boost later. The mistake beginners make is either skipping ads entirely (the listing never gets seen) or overspending on broad, untargeted campaigns. Start with Sponsored Products on your main keywords, watch your ACoS, and reinvest what works.
What is a realistic startup budget?
A realistic all-in budget for a first FBA product is $500 to $2,000, and you do not need every line on day one. Here is what a typical beginner spends before the first sale.
| Item | Typical cost |
|---|---|
| Professional selling plan | $39.99/mo |
| Product samples (3+ suppliers) | $50 - $150 |
| First inventory order | $500 - $1,200 |
| Launch ad budget | $300 - $500 |
| Product photography | $0 - $300 |
| Total to launch | ~$900 - $2,200 |
You can go leaner. Start on the Individual plan, order a small first batch, shoot your own photos, and reinvest early profit into more inventory. A common approach from the Jungle Scout State of the Amazon Seller Report is testing a first product on a tight budget before committing more capital. The goal is to keep the first order small enough to survive if the product flops, and large enough to prove the concept if it works. For the full launch walkthrough, see how to sell on Amazon.
What are the hidden costs sellers forget?
The costs that surprise sellers are rarely the obvious fees; they are the operational ones that only show up once you are running. Budgeting for the plan, referral, and FBA fees is easy. Budgeting for the ongoing work is where most new sellers underestimate.
- Returns and refunds - Amazon charges a return processing fee in some categories, and refunds cost you the sale.
- Long-term storage surcharges - inventory that sits too long gets penalized.
- Repricing losses - if you do not adjust price competitively, you lose the Buy Box and the sale.
- Your time - the biggest hidden cost. Managing listings, ads, pricing, and reviews by hand is close to a full-time job.
That last one is the real story. Marketplace Pulse reports that Amazon's third-party seller services generated more than $140 billion in a recent year, which tells you how much of a seller's cost is now operational rather than upfront. You either pay in hours, pay a virtual assistant, pay for a stack of tools, or pay for an operator that runs the work for you. Whether FBA is worth those costs is a separate question we cover in is Amazon FBA worth it.
Frequently asked questions
How much does it cost to sell on Amazon in 2026?
You can start for under $500 on the Individual plan with a small first order, or budget $500 to $2,000 for a proper FBA launch. Ongoing costs include a selling plan, referral fees around 15%, FBA fees, storage, and ads. Fees scale with sales volume.
How much is the Amazon seller fee per month?
The Professional plan costs $39.99 a month with no per-item fee. The Individual plan has no monthly fee but charges $0.99 per item sold. Most sellers switch to Professional once they sell more than about 40 units a month, since it also unlocks ads and the Buy Box.
What is the Amazon referral fee?
The referral fee is a percentage Amazon takes on each sale, usually 15% in most categories, though some range from 8% to 17%. It is charged on the total sale price including shipping. This is separate from FBA fulfillment and storage fees.
How much are Amazon FBA fees?
FBA fulfillment fees typically run about $3 to $8 per unit, based on size and weight, plus monthly storage fees that rise in Q4. Long-term storage penalties apply to aged inventory. FBA fees are separate from the referral fee taken on each sale.
Can I sell on Amazon for free?
You can start with no monthly fee on the Individual plan, but you still pay a $0.99 fee per item sold plus referral fees on each sale. There is no way to sell entirely free of fees, but you can start with almost no upfront cost and reinvest.
What is a realistic budget to start selling on Amazon?
Many beginners start with $500 to $2,000, covering samples, a small first inventory order, a selling plan, and a launch ad budget. You can start leaner and reinvest profits, but too little capital is a common reason new sellers stall before ranking. See our Amazon FBA for beginners guide.
The fees are the easy part to calculate. The expensive part is the daily work of keeping listings, pricing, ads, and reviews optimized so those fees turn into profit. Jinnify runs that work on autopilot for $49/mo, so your Amazon costs actually convert into sales. And if you do not have a product yet, it can help build one. Start for free.
Author: The Jinnify Team - Amazon growth and automation specialists Published: 2026-07-08 | Updated: 2026-07-08 Sources: Amazon Seller Central, Amazon Ads, Jungle Scout State of the Amazon Seller Report, Marketplace Pulse