Amazon Referral Fee 2021 Update – US Marketplace

We know that Amazon’s referral fees are here for a reason. They cover Amazon’s cost for benefits such as access to their marketplace, processing of credit cards, and use of customer support.

Amazon does reassess their referral fees annually based on industry cost, seller feedback, and, of course, their bottom line.

On February 18, 2020, Amazon introduced changes to the Referral Fee Percentages. For 2021, Amazon released specific referral fee changes in three categories: Personal Computers, Full-Size Appliances, and Veterinary Diets. These changes in the referral fees will commence on June 1, 2021.

It is important to note that sellers pay either the per-item minimum referral fee OR the referral fee (as a percent), whichever is greater of these referral fees Amazon.

Minimum Amazon Referral Fees

The first change is the drop of the Applicable Minimum Referral Fee from $1 to $0.30 on most categories*.  This change of referral fee on Amazon is beneficial for those who are selling items in these select categories under $6.67.

*The $0.30 per item minimum referral fee does not include Collectible Cards products in the Toys & Games category.

Amazon Referral Fee 2021 by Category – Progressive Charges

 

In the following Amazon referral fee by category, the percentage charges are now progressive. This means there is a different fee on the portion of the price above a certain amount for a specific Amazon referral fee by category.

Personal Computers

Upon the implementation of the new referral fees for 2021, Amazon sellers should expect an 8% referral fee for the Personal Computers category. The 2% increase will help align the referral fee under the said category with other electronic device categories.

Full-Size Appliances

Amazon will be splitting the referral fees for the Appliances category. Full-Size Appliances will have an 8% referral fee, and Compact Appliances remain unchanged, which is 15% for the portion of the total sale price up to $300, and 8% for any portion of the total sales price above $300.

Veterinary Diets

This sub-category of pet products will be charging a 22% referral fee starting June 1, 2021. This supplemental increase of 7% will cover the maintenance of the veterinarian confirmation process for Veterinary Diets. Worth noting that for other pet products, the 15% referral fee remains unchanged for 2021.

Amazon Referral Fee 2020 by Category – Progressive Charges

 

Furniture (Including Outdoor Furniture)

The new referral fee update for outdoor furniture products will be reduced to 10% for the portion of the sales price for items above $200. This is a relatively huge cut from its normal percentage fee of 15%. 

Jewelry

Referral fee Amazon percentages were previously 20%. This will change to 20% for the portion of the sales price up to $250 and 5% for any portion of the sales price above $250.

For example: Take a $255 necklace. You will pay 20% on the first $250 which is $50. Plus 5% on the $5 above 250 which is $0.25. Total Referral Fee= $50.25

Pay Close Attention

This next change is where things get a little more complicated. Because the new referral fees are using a tiered system, there are some price ranges where you will get less money due to increased Amazon fees after a certain price point.

Health & Personal Care (including Personal Care Appliances)

Another consolidation of categories has been introduced with the referral fee updates of 2020. The personal care appliances category is now merged with the Health & Personal Care category.

Along with the consolidation, a  referral fee percentage change shall be observed by sellers. From the original 15%, referral fee for items with a total sales price of $10.00 or less is now 8%.

However, for products with $10 total sales under the consolidated category, the 15% referral fee is retained.

Grocery & Gourmet Food

Referral fee percentages will b8% for products with a price up to $15.00 and 15% for products with a price above $15.00. The range where sellers should not sell is between $15.01 and $16.24.

Clothing & Accessories (including activewear)

Activewear’s referral fee will be similar to that of Clothing & Accessories at 17%.

Amazon Device Accessories

After being consolidated into the Amazon Device Accessories, Ring accessories will now have a 45% referral fee.

Shoes, Handbags & Sunglasses

For the updated 2020 referral fee of the Shoes, Handbags & Sunglasses category, Amazon has introduced a significant cut. What used to be an 18% referral fee has been reduced to 15% for items under such a category having a total sales price of more than $75.

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