Quick answer
Selling with Fulfilment by Amazon (FBA) involves more than the cost of the product. Typical categories are the product itself, shipping to Amazon, Amazon's own fees, storage, advertising and returns. Amazon sets and updates its fees, so check its current fee pages before you work out a budget.
In this article
Why a full budget matters
A product can look profitable until every cost is counted. Listing each category early helps you set a realistic price and avoid surprises.
The main cost categories
| Cost | What it covers | Who sets it |
|---|---|---|
| Product cost | What you pay your supplier, including samples. | You and your supplier |
| Shipping to Amazon | Freight and any customs or handling to reach the warehouse. | Your carrier or forwarder |
| Referral fee | Amazon's fee for selling in a product category. | Amazon |
| Fulfilment fee | Picking, packing and shipping the order to the customer. | Amazon |
| Storage fees | Keeping your stock in Amazon's warehouses. | Amazon |
| Advertising | Optional sponsored ads to help shoppers find the product. | You, within Amazon's auction |
| Returns and prep | Returned units, labelling, packaging or inspection. | Depends on the item |
Planning tips
- Work out the total landed cost per unit before you set a price.
- Leave room for returns, unsold stock and fee changes.
- Start with a small first order while you learn how the process works.
- Keep records from the start so tax and accounting are simpler later.
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The Skills Commerce team
Guides are written by our team in Sialkot. They are general information to help you get oriented, not legal, tax or financial advice.
