What is Amazon’s cut when you sell your product through its platform?
For many Canadian sellers, the answer comes down to two words: referral fees.
The number is simple to understand. It has no complexity. Adding it to the P&L statement is easy.
But when your margin on a $50 product is only $5, you realize something is missing: six different hidden fee layers that did not exist two years ago.
Amazon made a promise in 2025. “We are not changing the referral fees,” they said. They even increased the discount rate. The vibe of the news was positive. But what most sellers brushed past was the increase in storage fees. And a few other spots that compound quietly, eating the margins away.
This guide will go deep into Amazon’s FBA fees in Canada. It will make you understand what you are missing, what you see, and how you can reduce the shipping cost to keep your profits.
Why So Many Canadian FBA Sellers Are Losing Money Without Knowing It
Amazon’s promise of not increasing the referral fees, or the FBA fulfillment fees in Canada, is true. Even the FBA discount rate ramped up, going from CAD $11 to CAD $14.
So why are many Canadian FBA sellers still losing money?
Simple answer: referral fee is only 1/7th of the whole FBA fees picture. 43% of Amazon sellers don’t understand the complex FBA fees before their first year.
According to ProMerit, FBA fees in Canada can consume 25% to 55% of the product’s retail price. Clearly showing that a lot more than referral fees is part of the margin erosion “concoction.”
Here’s a clear example.
A $25 baking mat gets a 15% referral fee: $3.75, a $3.22 fulfillment fee for a small standard item. Then add costs for monthly storage, advertisement, and incidentals.
In the end, what could’ve been a gross profit of $17.50 (assuming $5.50 COGS), comes down to $12.53 before storage and ads.
Canada’s 3% digital service tax (DST) adds another layer to this margin erosion that’s never accounted for.
But that’s not all.
In the end, the reduced margin of $12.53 before storage and ads reduces to just $3.
“I lost $40k on FBA fees last year because of bad math,” wrote one user on Reddit.
The comments revealed that many sellers layer fees individually. Referral fee on every sale. Fulfillment fee on every unit. Storage fee every month. And then DST on top. They mistakenly look at each fee individually, each appearing small.
But when they compound, margins erode substantially.
What Are Amazon FBA Fees in Canada?
The confusion about Amazon FBA fees is due to no explanation about the different components from which the fee is derived. Fulfillment fee gets the most explanation. Referral fee gets the most priority. Monthly storage and closing fees get sidelined.
Fulfillment Fees
Fulfillment fees are charged when a unit ships from Amazon.ca to fulfillment centres. It is a per-unit fee for pick, pack, and ship.
The lightest tier meant for standard-size items starts at CAD $5.92 per unit. For oversized products, the fee can exceed CAD $82.20 per unit.
Surcharges on fulfillment fees include:
- Peak season surcharge: Peak season surcharge is applied from October 15 to January 14 each year. The percentage of surcharge varies. For instance, a 350 gram item would cost $6.73 in non-peak seasons. During peaks, it will be $7.13.
- Dangerous good surcharge: Surcharge for dangerous goods/hazmat items carry an additional surcharge of $0.11 per unit.
Depending on the size and weight of the product, Amazon offers a Ships in Product Packaging discount. It ranges from $0.05 to $1.68.
Despite these different elements baked into the fulfillment fees, Amazon says that its FBA fees in Canada are 38% cheaper as compared to other major 3PLs.
Monthly Storage Fees
Monthly storage fees are charged per cubic metre in Canada. Calculated based on daily average volume of space occupied.
The FBA storage fees in Canada are lower during off-peak seasons. During peaks, it surges by CAD $13/cubic metre since 2025. That’s a significant spike compared to the US, which is $0.78/cubic foot off-peak and $2.40/cubic foot during peak.
Rates for oversize storage have also bumped. They have gone from CAD $3/cubic metre off-peak and CAD $8/cubic metre during peak.
The surcharge on monthly storage fee is the Storage Utilization charge. It is charged when your storage-to-sales ratio exceeds approximately 26 weeks of cover. This punishes sellers with long-term warehousing needs.
The good news is that as of July 2024, Amazon discontinued inventory storage overage fees in the US, Canada, UK, and EU. But due to capacity limits still being active, exceeding them prevents creating new shipments.
Referral Fees
Amazon Referral fees in Canada is the percentage of the total sale price (including shipping and gift wrap) that Amazon takes as a cut from Canadian sellers for every sale. It applies regardless of whether you choose FBA or FBM.
It ranges from 8% to 45% depending on category, with the most common rate being 15%.
Here’s a small list highlighting key product categories and their referral fees:
- Consumer Electronics: 8%.
- Beauty, Health & Personal Care: 8-15% depending on sale price.
- Kitchen & Dining: 15%.
- Jewellery: 20%.
- Amazon Device Accessories: 45%.
A minimum referral fee of CAD $0.30 is applied. It creates cost dissonance. Amazon’s approach increases referral fees on cheaper items.
The good news is that Canada hasn’t increased the referral rate. The bad news is that the rate is still high. Sellers of low-cost products lose much of their profit margins.
Closing Fees
Closing fee covers payment processing and customer support. It has two components:
- Media closing fee: It is charged on top of the referral fee. CAD $1.80 per item on books, music, video, and DVD products.
- Refund Administration Fee: It triggers during refunds. Amazon refunds the referral fee minus an admin recharge. It’s less than $5 or 20% of the referral fee.
Hidden Amazon FBA Fees Canadian Sellers Miss
When sellers ask how much does Amazon FBA cost in Canada, most answers that they receive online miss the hidden context. The hidden part of the fee is the parasite that compounds, eating away at the margins.
The fees are subtle. They look small when looked at individually. But when compounded over a month, they blow a chunk out of the profit margin.
Long-Term Storage Fees
“Can I use FBA, but not their storage?” said a user named Abject_Baby305, hinting at the long-term storage fee that sellers have to contend with when dealing with Amazon.
As Amazon takes a delivery snapshot on the 15th of every month, an aged inventory surcharge kicks in at 271+ days.
Considering the inventory storage fees are already high, this increase in additional charge makes sellers vulnerable. Some have said that cities like Toronto and Vancouver are especially vulnerable.
Sellers have voiced their complaints on the forum, saying that they cannot ship to FBA during winter months due to freeze risk when sitting outside Amazon’s warehouse waiting to be received.
Others have complained that instead of the “insane” low-inventory-level fee, Amazon should have just removed all the affected products from FBA.
Amazon now automatically removes the inventory without active listings after 60 days, and products that are stored over 270 days. It often happens without notification. You won’t even know about it.
Removal & Disposal Fees
Amazon’s removal fee ranges from CAD $0.36 to CAD $5.70 + CAD $0.97/kg above the first 5kg per unit in Canada, depending on item size tier.
The disposal fee ranges from CAD $0.30 to CAD $3.53 + CAD $0.59/kg above the first 5kg per unit.
This fee is not exactly hidden. Amazon used to reveal it as a lump sum charge after the order completed. As of March 2026, removal and disposal fees are now billed per unit as each item is processed.
Removal and disposal fees have gone through one of the biggest jumps since 2021. According to Carbon6, removing a standard sized pillow in the US now costs $12.37, a 930% increase from 2021 levels. Canada follows the same pattern.
There is a manual processing fee on top of that. A charge of CAD $0.11 per unit if you don’t provide box content information in Seller Central.
Returns Processing Fees
Returns processing fee applies to Clothing, Accessories, and Footwear in Canada. For other categories, the fee is only applied when the return rate exceeds a category-specific threshold.
The return rate is calculated over a 3-month tracking window.
In applicable categories, the return processing fee is equal to the original fulfillment fee.
Additional elements to the returns processing fees include:
- Refund administration fee: Charged as referral fee. Could either be $5 or 20% (whichever is greater) on all refunds.
- Restocking fee: Charged for restocking when the item returned is opened or damaged.
Dimensional Weight Surcharges
When the product is large standard, large bulky, or extra large, Amazon uses the greater of actual unit weight and dimensional weight to calculate the fee.
It means that if the product is lightweight but bulky, like a pillow, a large toy, or a lampshade, dimensional weight charges are 2 to 4 times the actual weight.
There is also a hidden cross-border layer to this. A seller on the Seller Central Canada forum described that shipment from Canada to US Amazon FBA is overpriced.
He talked about how a $60 CAD fee was imposed on a $3.5 lb box.
Small packages counter this issue. Shifting the product to a lower size tier, reducing the package size by 1 or 2 centimetres can save $0.50-$2.00 per unit.
Another solution is the SIPP program, which rewards sellers whose products don’t require the Amazon overbox before shipping.
Additional Hidden Fees
Other hidden categories such as the digital services tax add a 3% surcharge on Canadian sellers on all Amazon Marketplace fees.
Low-level inventory fee is a big penalty on sellers when a product’s inventory falls below 28 days of historic ranges. It ranges from $0.32 to $1.11 depending on size tier and severity.
Currency conversion fees and custom brokerage fees are other charge sources that could erode margins quickly.
How to Reduce Amazon FBA Shipping Costs from Canada
There are many ways to reduce Amazon FBA fees in Canada. You can take help of shipping aggregators, optimize packaging for dimensional weight, and time your inventory replenishment.
Shipping Aggregators & Cross-Border Services
For Canadian sellers, the cheapest way to ship to Amazon FBA in Canada is to rely on high-profile 3PLs, and not standard carriers.
Why not something like UPS? Because according to sellers posting on Seller Central Canada, “Shipment from Canada to USA Amazon FBA overpriced!!!” They revealed that UPS Partnered Shipping doesn’t work cross-border. 3PLs are much better.
Stallion Express, ChitChats, and Cross Border Pickups are commonly recommended.
They pick up from Canadian addresses, handle border crossing, and deliver to UPS facilities in Niagara Falls/Buffalo.
When creating your Amazon shipment plan for the US marketplace, they give you a US ‘ship from’ address to use. Good way to reduce shipping costs.
Certain 3PLs include FBA prep services such as labeling, bundling, shrink wrapping, and poly bagging. All within 24-72 hours. Toronto-based Beta Prep Canada is one example.
With eShipper, you can get DDP (Delivered Duty Paid) and DDU services for Canada-US cross-border. A licensed broker handles customs clearance, further putting the mind at ease.
If you are from the Greater Toronto Area, Lower Mainland, or Greater Montreal, you can access bulk order cross-border rates through aggregators due to proximity to US border crossings and volume of e-commerce shipments from these hubs.
Packaging Optimisation for Dimensional Weight
Reducing any dimension of a product by even a single inch can drop a product to a lower FBA size tier. It can save $0.50-$2.00 per unit across hundreds of shipments.
Nesting is another packaging optimization approach. Design packaging so products fit inside each other or pack flat. Helps reduce cubic volume without changing the product.
Using SIPP is another option. Using your own packaging and not relying on Amazon overbox could give you $0.05 to $1.68 per unit in fulfillment fee discounts.
For a more analytical option, use Amazon’s FBA calculator. Canada-based sellers should check out the Size Tier Optimizer.
It takes the initial unit dimensions and weight, product information, and current tier size. As an output, it generates a PDF report giving you adjustments you can do to save costs.
For a more rugged approach, let go of bubble wrap and choose kraft paper and air pillows instead. It brings down the actual weight of the package while keeping it safe.
FBA vs FBM Decision Framework for Canadian Sellers
Understanding which to pick between FBA and FBM is another way to save on Amazon Shipping in Canada.
FBA gives you a prime badge, which has significantly high conversion rates. Since Amazon handles customer service, returns, and fast delivery speeds, your buy box positioning becomes better.
FBA brings cost issues too. The FBA fees can exceed 30% of an item’s selling price. In simple terms, Amazon FBA profitability for Canada-based sellers is low.
If cost is the concern, FBM is better.
The costs are predictable. There are no storage fees, and no limits to inventory capacity. You also have full control over packaging and branding. It is flexible, with no dimensional weight surcharges from Amazon. Perfect for low-margin products.
During peak times, FBM is attractive as FBA restricts inventory intake and increases storage fees.
FAQ Amazon FBA Canada Fees
What are Amazon FBA fees in Canada?
Amazon FBA fees in Canada include fulfillment fees (CAD $5.92 to $82.20 per unit), monthly storage fees charged per cubic metre, referral fees (8% to 45% depending on category), and closing fees for media products. A Professional seller account costs CAD $29.99 per month. Products priced under CAD $14 qualify for a discounted fulfillment rate. Use Amazon’s Canada FBA Calculator to estimate your total per-unit cost before listing.
Are Amazon FBA fees higher in Canada than the US?
On a converted basis, Canadian FBA fees are comparable to US fees. Amazon claims its Canadian FBA rates are 38% cheaper than other major 3PLs. The gap shows up elsewhere. Canadian sellers pay a 3% Digital Services Tax that US sellers on Amazon.com don’t. Currency conversion eats 2 to 4% per transaction. Storage fees in Canada rose by CAD $13/cubic metre during peak season in 2025. The base rates look similar. The effective cost of selling from Canada is higher.
What hidden Amazon FBA fees do Canadian sellers miss?
The biggest ones are aged inventory surcharges starting at 271 days, the 3% Digital Services Tax, removal and disposal fees that have jumped over 900% since 2021, and returns processing fees in apparel and footwear. Unplanned service fees of CAD $0.60 per unit hit when labeling is wrong. Low-inventory-level fees penalize you for stocking below 28 days of demand. Currency conversion and customs brokerage fees add another 2 to 4% that never shows up in Amazon’s fee calculator.
Is FBA or FBM better for Canadian sellers in 2026?
FBA is better for fast-moving, lightweight, standard-size products where the Prime badge drives conversions. FBM is better for oversized items, seasonal products, and anything with thin margins where FBA fees exceed 30% of sale price. Most profitable Canadian sellers run both. FBA for Prime-eligible inventory that turns fast. FBM for everything else.
How can Canadian sellers reduce Amazon FBA shipping costs?
Use cross-border shipping aggregators like Stallion Express, ChitChats, or Cross Border Pickups for bulk rates to US FBA centres. Optimize packaging to reduce dimensional weight. Even a 1-inch reduction can drop you to a lower size tier. Ship to 5 or more Amazon locations to avoid inbound placement fees. Time inventory arrivals before October and sell through Q4 instead of storing through peak. Sellers in the GTA, Lower Mainland, and Greater Montreal get the best aggregator rates due to border proximity.
