Marketplace fees are the largest variable cost for most e-commerce sellers — yet many sellers don't know their total fee percentage until they calculate it from their P&L. This guide gives you the full picture upfront.
Amazon FBA (Fulfilled by Amazon)
The most complex fee structure in e-commerce:
| Fee type | Rate |
|---|---|
| Referral fee (category-dependent) | 8-17% of sale price |
| FBA fulfillment (per unit) | $3.22-$10.10+ |
| Monthly storage (Jan-Sep) | $0.78/cubic foot |
| Monthly storage (Oct-Dec) | $2.40/cubic foot |
| Long-term storage (365+ days) | $6.90/cubic foot |
| Returns processing | $2-12/item |
Example calculation — $25 product, 1 lb, small standard size:
| Fee | Amount |
|---|---|
| Sale price | $25.00 |
| Referral fee (15%) | -$3.75 |
| FBA fulfillment | -$3.22 |
| Storage (monthly, pro-rated) | -$0.25 |
| Total Amazon fees | -$7.22 (28.9%) |
| After fees | $17.78 |
Add product cost, and most sellers net 10-20% margins on Amazon before advertising.
Amazon Advertising (PPC) — the hidden fee: Amazon's algorithm now requires advertising investment for visibility. Most sellers spend 5-15% of revenue on Amazon ads. Effective total fee stack: 35-55% for many categories.
Etsy
| Fee type | Rate |
|---|---|
| Listing fee | $0.20 per listing (4 months) |
| Transaction fee | 6.5% of sale price + shipping |
| Payment processing | 3% + $0.25 |
| Offsite Ads (mandatory over $10K/year) | 12% of attributed sales |
| Optional Etsy Ads | Variable |
Example — $35 handmade item, $8 shipping:
| Fee | Amount |
|---|---|
| Transaction fee | -$2.80 (6.5% of $43) |
| Payment processing | -$1.29 (3% of $43 + $0.25) |
| Listing fee (pro-rated) | -$0.04 |
| Total Etsy fees | -$4.13 (11.8% of revenue) |
Etsy's fee structure is significantly more seller-friendly than Amazon for non-commodity products.
eBay
| Fee type | Rate |
|---|---|
| Insertion fee | Free for first 250 listings/month |
| Final value fee | 13.25% (most categories) |
| Payment processing (built in) | Included in final value fee |
| Promoted Listings Standard | Optional, 2-12% |
Example — $40 used electronics item:
| Fee | Amount |
|---|---|
| Final value fee (13.25%) | -$5.30 |
| Total eBay fees | -$5.30 (13.3%) |
eBay is competitive for used goods, collectibles, and electronics. New goods often compete poorly against Amazon's Prime selection.
Walmart Marketplace
| Fee type | Rate |
|---|---|
| Referral fee (category-dependent) | 8-15% |
| WFS fulfillment (Walmart Fulfillment Services) | $3.45-$6.50+ per unit |
| Storage | Lower than Amazon |
| No monthly subscription fee | — |
Example — $35 product, Walmart Fulfillment:
| Fee | Amount |
|---|---|
| Referral fee (12%) | -$4.20 |
| WFS fulfillment | -$4.00 |
| Total Walmart fees | -$8.20 (23.4%) |
Walmart Marketplace is less saturated than Amazon with growing traffic. Lower PPC competition means lower effective advertising costs.
Shopify (Own Store, Not Marketplace)
Not a marketplace but often compared:
| Fee type | Rate |
|---|---|
| Monthly plan | $29-299/month |
| Transaction fee (if not using Shopify Payments) | 0.5-2% |
| Shopify Payments processing | 2.4-2.9% + $0.30 |
Example — $40 sale, Basic plan, Shopify Payments:
| Fee | Amount |
|---|---|
| Processing fee (2.9% + $0.30) | -$1.46 |
| Monthly plan (pro-rated per order) | Variable |
| Total Shopify fees | ~3.7-4.5% per transaction |
Own-store economics are dramatically better but require your own traffic acquisition.
The Platform Selection Matrix
| Selling situation | Best platform |
|---|---|
| Handmade, vintage, unique | Etsy |
| New branded products | Amazon (scale) or Shopify (margin) |
| Used goods, collectibles | eBay |
| Consumer goods competing on price | Walmart Marketplace (less competition) |
| High margin, own brand | Shopify (own store) |
| Maximum scale | Amazon + Shopify dual-channel |
Total Fee Comparison (Same $35 Product)
| Platform | Total fees | % of revenue |
|---|---|---|
| Shopify (own store) | ~$1.50 | ~4.3% |
| Etsy | ~$4.00 | ~11.4% |
| Walmart Marketplace | ~$6.50 | ~18.6% |
| eBay | ~$4.60 | ~13.1% |
| Amazon FBA (w/o ads) | ~$8.00 | ~22.9% |
| Amazon FBA (with ads at 10%) | ~$11.50 | ~32.9% |
Own-store economics are dramatically better. But Amazon's 500+ million active shoppers means higher sales volume compensates for lower margins for many sellers.
Use the E-commerce Profit Margin Calculator to model your true margin on any marketplace after all fees.