Your margin looks great on paper. Then you check your bank account.
Where did the money go?
Amazon fees.
But not the ones you’re tracking.
Most sellers account for referral fees and FBA fulfillment. That’s the obvious stuff.
But these 5 fees quietly eat profit every month, and they’re usually not in your COGS:
- Long-term storage fees
Inventory sitting in FBA for 365+ days gets charged. It’s not part of your product cost, but it’s real money gone.
- Removal and disposal fees
Damaged units. Expired products. Returns you can’t resell. Amazon charges to remove or destroy them.
- Inventory placement fees
When Amazon distributes your inventory across multiple warehouses, you pay for it. Small fee per unit, but it adds up fast.
- High-volume listing fees
Over 100,000 SKUs? There’s a monthly fee for that. Most sellers don’t realize it until they see the charge.
- Refund administration fees
Amazon keeps the referral fee even when a customer returns the product. That’s money you never get back.
If these fees aren’t separated out, your gross margin looks better than it actually is.
You think you’re profitable. But you’re actually bleeding cash through fees you’re not tracking.
But then, where should you put them in QuickBooks?
Some belong in COGS (like removal fees for unsellable inventory).
Others belong in operating expenses (like long-term storage).
A2X can help separate these automatically if it’s mapped correctly.
If you’re not tracking these 5 fees separately, your profit number is wrong. And wrong numbers lead to bad decisions.
Bookmark this. Check your Amazon fee reports. Make sure these are accounted for.