Understanding the Real Amazon FBA Cost in the UK (2025)

Amazon’s Fulfilment by Amazon (FBA) programme gives UK sellers a powerful way to outsource logistics, but the true Amazon FBA cost in 2025 can eat into your profits if you're not careful. From updated fulfilment fees to hidden surcharges, understanding your expenses is essential. Here's what UK sellers need to know this year.

Breakdown of Core Amazon FBA Costs (2025 Update)

Fulfilment Fees

Fulfilment fees cover the cost of picking, packing, and shipping your products. These fees vary based on the size and weight of the item.

Note: These fees are effective as of 1st February 2025.

Storage Fees

Storage fees are charged monthly based on the volume of inventory stored in Amazon's fulfilment centres.

Note: These rates are subject to VAT.

Referral Fees

Amazon charges a referral fee for each item sold, which is a percentage of the total sales price, including item price and shipping. The percentage varies by category.

Note: A minimum referral fee of £0.25 applies to most categories. 

Examples Of Fees On Sample Products Sold via Amazon FBA

Here are some sales from my actual Amazon store showing the fees that are incurred.

Additional FBA Fees

Inbound Shipping Costs to Amazon Fulfilment Centres

Why Inbound Shipping Costs Matter

Inbound shipping is often overlooked by new sellers but can significantly affect your profit margins. These are the costs associated with sending your products from your location (or manufacturer) to Amazon’s fulfilment centres.

Amazon Partnered Carrier Program (UPS)

One of the most cost-effective ways to ship inventory to Amazon in the UK is through their partnered carrier program with UPS.

Key Benefits:

• Heavily Discounted Rates: Through Amazon’s UPS partnership, you get access to rates significantly lower than retail.

• Integrated Tracking: Shipments are automatically tracked in Amazon Seller Central.

• Convenient Pickup: You can drop off parcels at a local UPS location or schedule a pickup from your home or work place.

Typical Costs (2025 Estimates)

Note: These rates vary based on shipment volume, location, and any negotiated terms.

How to Use the Partnered Program

1. In Seller Central, create an FBA shipment.

2. Select “Amazon-Partnered Carrier” during the shipment creation.

3. Print shipping labels and affix them to your packages.

4. Drop off at a UPS point or arrange for pickup.

Additional Tips to Save on Inbound Shipping

• Bundle smaller products into one parcel to optimize weight usage.

• Use poly mailers or compact boxes to minimize dimensional weight.

• Plan shipments to avoid peak season surcharges.

Inbound vs. Outbound Considerations

While inbound costs are your responsibility, outbound shipping (to the customer) is covered by Amazon as part of the fulfilment fee. Minimizing inbound shipping directly increases your margins.

By adding inbound shipping strategies, especially leveraging Amazon’s UPS partnered program, you gain tighter control over your expenses, ensuring better profitability across your FBA operations.

Returns Processing Fee

For categories with free return shipping, such as apparel and shoes, Amazon charges a returns processing fee equivalent to 50% of the fulfilment fee.  

If you choose to remove or dispose of inventory from Amazon's fulfilment centres, the following fees apply:

Note: Fees are subject to VAT.

Aged Inventory Surcharge

Inventory stored for more than 365 days incurs an aged inventory surcharge of £6.90 per cubic foot or £0.15 per unit, whichever is greater. 

Strategies to Minimize FBA Costs

Now that you understand the Amazon FBA cost structure, here are proven strategies to help UK sellers reduce fees and improve profit margins in 2025.

• Optimize Packaging: Ensure your products are packaged efficiently to fit into smaller size tiers, reducing fulfilment fees. 

• Monitor Inventory Levels: Regularly assess your inventory to avoid long-term storage fees and aged inventory surcharges.

• Utilize Low-Price FBA Rates: For products priced under £10, consider Amazon's Low-Price FBA Rates for reduced fulfilment fees.

• Participate in 'Ships in Product Packaging' Program: Qualify for discounts by ensuring your products can be shipped without additional Amazon packaging.

Want to know how to choose the best products to minimise your Amazon FBA cost? Check out our product sourcing checklist for UK sellers.

FAQs About Amazon FBA Cost in the UK

1. What is the average fulfilment fee for a standard item?
Approximately £3.00 for a small parcel weighing up to 1.9kg.

2. Are storage fees charged monthly?
Yes, storage fees are calculated monthly based on the volume of inventory stored.

3. How can I avoid aged inventory surcharges?
Regularly monitor your inventory and implement strategies to promote sales of older stock.

4. Do referral fees vary by category?
Yes, referral fees range from 7% to 20% depending on the product category.

5. Is VAT included in the listed fees?
No, VAT is applied on top of the listed fees at the standard rate of 20%

6. What is the 'Ships in Product Packaging' program?
It's a program where products are shipped in their original packaging, qualifying for reduced fulfilment fees.

Conclusion

Final Thoughts on Amazon FBA Cost in the UK (2025)

To thrive as a seller in 2025, managing your Amazon FBA cost isn’t optional - it’s a competitive necessity. Review your inventory regularly, take advantage of Amazon programmes like Low-Price FBA and Ships in Product Packaging, and stay up to date with fee changes. The more you optimise your processes, the more profit you’ll keep.

For more detailed information, refer to Amazon's official FBA Rate Card UK.