A per-item fee Amazon charges on media products (books, DVDs, video games) in addition to the referral fee. Typically a fixed amount per unit sold in these specific categories.
Understanding Variable Closing Fee
A variable closing fee is an additional per-item fee that Amazon charges on sales of media products — books, music, DVDs, video games, and software. This fee is charged in addition to the standard referral fee and varies by product sub-category.
The variable closing fee is typically $1.80 per item for most media categories. It was originally introduced when Amazon's marketplace was primarily a book-selling platform and has been retained as a legacy fee structure even as Amazon expanded into all product categories.
This fee only applies to the "Media" category (books, music, video, DVD, video games, software, and computer games). Sellers in all other categories do not pay this fee. For media sellers, the variable closing fee represents a significant additional cost per unit that must be factored into pricing and profitability calculations.
Why It Matters for Ecommerce
For media sellers on Amazon, the variable closing fee is an additional $1.80 per item that significantly impacts margins on lower-priced products. A book selling for $8 faces a $1.20 referral fee (15%) plus $1.80 variable closing fee = $3.00 in Amazon fees (37.5% of the selling price) before FBA fees. This makes profitability challenging for low-priced media items.
Practical Example
You sell a used book for $10 on Amazon FBA. Fees include: $1.50 referral fee (15%), $1.80 variable closing fee, $3.22 FBA fulfillment fee. Total fees: $6.52 (65.2% of the selling price). If your cost for the book was $2, your net profit is only $1.48 per unit. Without accounting for the variable closing fee, you might have expected $2.28 more profit.
Related Terms
Referral Fee
A percentage-based commission charged by Amazon on each sale, varying by product category (typically 8-15%). It is the primary selling fee on the Amazon marketplace.
EcommerceMarketplace Fee
A general term for any fee charged by an ecommerce platform for facilitating a sale, including referral fees, closing fees, and payment processing fees. Directly reduces a seller's net payout.
EcommerceFBA (Fulfillment by Amazon)
A service where sellers send inventory to Amazon's warehouses and Amazon handles storage, packing, shipping, and customer service. Sellers pay storage and fulfillment fees in exchange.
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