Every marketplace in this hub charges some combination of the same four fee categories — the exact rates differ (see each marketplace hub), but the categories are consistent, which makes them a useful common language for comparing platforms that otherwise look very different on the surface.
1. Referral / transaction fees
A percentage of the sale price, charged on every completed sale — this is the core "cost of doing business" on any marketplace and typically ranges from about 6% to 15%+ depending on category and platform. Some platforms (eBay, Etsy) also layer on a separate payment-processing fee, while others (Amazon, Walmart) bundle payment processing into the referral fee itself. Always check whether a quoted "fee" already includes payment processing or not, since comparing an all-in rate to a rate that excludes processing understates the true cost of the second platform.
2. Fulfillment fees
If you use the marketplace's own fulfillment program (FBA, WFS), you pay per-unit fees based on size/weight, plus ongoing storage fees. Self-fulfilled sellers pay their own carrier/3PL costs instead — see Fulfillment & Logistics. Fulfillment fees typically include:
- Pick, pack, and ship fees — a per-unit fee scaled to size and weight tier.
- Monthly storage fees — charged per cubic foot (or similar unit) of space your inventory occupies, often with seasonal rate increases during peak periods.
- Long-term storage or aged-inventory surcharges — additional fees for inventory that's sat unsold beyond a stated threshold, designed to discourage warehousing slow-moving stock indefinitely.
- Returns processing fees, on some platforms — a fee associated with processing a returned unit, separate from any refund to the buyer.
3. Advertising costs
Optional but, in practice, close to necessary for meaningful visibility in most competitive categories — see Marketplace & Retail Media Advertising. Advertising is typically auction-based (you bid on placement, and pay per click or per impression depending on the ad type), which means the effective cost varies by competition level in your specific category rather than being a fixed rate.
4. Subscription/platform fees
Some platforms charge a flat monthly fee for a seller plan (Amazon's Professional plan) or optional add-on subscriptions (Etsy Plus/Pattern); others (Walmart, TikTok Shop) charge no standing monthly fee at all. This is typically the smallest fee category in dollar terms for a seller doing meaningful volume, since it doesn't scale with sales — but it can be a meaningful fixed cost for a very low-volume or just-launched seller.
Fee categories side by side
| Fee category | What it covers | Applies even with zero sales? |
|---|---|---|
| Referral/transaction fee | Percentage of each completed sale | No — only charged on a sale |
| Fulfillment fee | Per-unit pick/pack/ship | No — only charged on a fulfilled order |
| Storage fee | Space your inventory occupies in the platform's warehouse | Yes — accrues whether or not the item sells |
| Advertising | Sponsored placement in search/browse | Only if you choose to advertise |
| Subscription/platform fee | Flat monthly seller-plan cost | Yes, if enrolled, regardless of sales |
Notice that two of these five (storage and subscription fees) accrue independent of whether you actually sell anything — a slow-moving SKU sitting in a fulfillment center can quietly cost money every month even with zero orders.
A worked example: modeling the full stack for one SKU
Take an illustrative $22 item using the marketplace's own fulfillment program (figures are illustrative only — model your actual product with the Marketplace Fee Calculator):
| Line item | Illustrative amount |
|---|---|
| Sale price | $22.00 |
| Referral fee (~13%) | -$2.86 |
| Fulfillment fee (pick/pack/ship) | -$4.20 |
| Monthly storage (amortized per unit) | -$0.30 |
| Advertising (if running ads, per attributed unit) | -$1.50 |
| Net before product cost | $13.14 |
If the landed cost of this item is $9.00, the resulting contribution margin is roughly $4.14 per unit before any other overhead — a very different picture than looking at the referral fee alone would suggest. This is why "the referral fee is only 13%" is not, by itself, a meaningful profitability statement.
How to actually compare marketplaces on cost
Don't compare referral fee percentages alone — model the full stack (referral + fulfillment + realistic ad spend + returns) for your specific product using the Marketplace Fee Calculator and Product Profitability Calculator. A marketplace with a lower referral fee but much higher fulfillment costs for your product's size/weight can end up more expensive overall.
Common mistakes
- Comparing only referral fee percentages across marketplaces and concluding one is "cheaper" without modeling fulfillment and realistic ad spend.
- Forgetting that storage fees accrue on unsold inventory, turning a slow-moving SKU into a quiet, ongoing cost even without any sales.
- Not re-checking current fee schedules — these change (sometimes annually, sometimes with less notice for specific surcharges), and a stale mental model of "the fees" can lead to mispricing.
- Ignoring returns-related fees when modeling profitability for a category with an above-average return rate.
FAQs
Which fee category is usually the largest? It varies by product and category, but for many sellers using a fulfillment program in a competitive category, fulfillment fees and advertising spend combined often meet or exceed the referral fee — don't assume the referral fee is automatically the biggest line item.
Do all marketplaces charge storage fees? Only if you use their fulfillment program — self-fulfilled sellers store inventory themselves (in their own space or a 3PL) and pay that cost directly rather than through the marketplace's storage fee schedule.
How often do marketplace fees change? Fee schedules commonly get at least an annual review, and some fee categories (peak-season storage surcharges, for example) can change more frequently or seasonally — always check the current schedule for your specific category rather than relying on a fee comparison you did previously.