Verified Mathematical Model & Formulation
Referral Fee = MAX(Minimum Fee, Total Sales Price × Category Fee Percentage)
Calculates the category referral deduction applied on the total buyer checkout price, enforcing Amazon’s $0.30 category minimum fee where applicable.
Configurable Parameters & Standard Units
- Product Selling Price ($): (Default: 39.99 usd)
- Category Fee (%): (Default: 15 percent)
- Minimum Fee ($): (Default: 0.3 usd)
Standard Worked Example & Practical Verification
Scenario: Selling a $45.00 chef knife at standard 15% referral fee.
Calculated Solution
$6.75 Referral Fee ($38.25 Net Payout)
Practical Takeaway: Amazon takes 15% off the top prior to any fulfillment fees.
Frequently Asked Questions
Do referral fees apply to shipping charges paid by buyer?
Yes. If you fulfill orders yourself (FBM), Amazon charges the referral fee on the total price including any shipping fee charged to the buyer.